MILLIONS of people on benefits are set to get a much-needed £650 to help them through the cost of living crisis
The one-off payment will be made in two parts with the first half landing from July.
Those on Universal Credit and other means-tested benefits will get the help to support them as bills rise.
The cost of living payment is part of a package of support worth as much as £1,500 for the poorest households unveiled by the government in May.
It comes as energy bills are rocketing along with other living costs like food and fuel, which has hit record prices.
On top of the £650 payment for those on benefits, there’s £400 for energy billpayers and £300 more for pensioners.
Here’s we explain how the new support scheme works, known as the Cost of Living Payment, including who is eligible for the one-off £650 payment and when you can expect to get it.
Who is eligible for the £650 payment?
Those on the following benefits will get the £650 help, the government has said.
Income-based Jobseekers Allowance
Income-related Employment and Support Allowance
Income Support
Working Tax Credit
Child Tax Credit
Pension Credit
Universal Credit
When will I get the £650 payment?
The £650 payment will be made in two lump sums for those on benefits paid by the Department for Work and Pensions (DWP).
The first payment is being made from July 14, the government has said, and is worth £326.
The second part of the payment will be made in Autumn – but the exact date for that has not yet been announced.
That payment will be worth £324 when it does arrive.
Payments for those on tax credits which come from HMRC will “follow shortly after” each of these payments.
This is to avoid people getting paid twice if they get other benefits on top of tax credits.
Anyone who was in receipt of any of the eligible benefit payments as of May 25, or who had started a claim and is later successful will get the first payment.
Eligibility for the second payment will be announced later on, with a second date applying for the later tranche of cash.
It means you’ll get half in July and another payment in the Autumn, if you’re eligible on both dates.
You could be eligible for the second payment, even if you didn’t get the first, if you start claiming Universal Credit or other benefits.
The exact date you’ll need to have made a claim to get the second cost of living payment has not yet been announced.
It could be worth checking now if you could claim benefits as it’s estimated that millions of people are missing out.
Universal Credit is for those in work as well as those looking for a job.
The extra cash could top up your income as well as make you eligible for the £324 payment this Autumn.
Entitledto’s free calculator works out whether you qualify for various benefits, tax credits and Universal Credit.
Free online benefits calculators are also available from Turn2Us and Policy in Practice.
