cost of living payment – Page 2 – The NEN

7.2 million Cost of Living payments made to low-income families

Over 7.2 million payments of £326 have been made to help households through the UK government’s Cost of Living support.

7.2 million payments of £326 – worth a total of £2.4bn – made in first week of Cost of Living support rollout
Payments mark the first half of the £650 Cost of Living payment for low-income families, with the second half coming in the autumn
Additional support for disabled people and pensioners will follow later this year

This means £2.4bn has been paid out to low-income families in England, Wales, Scotland and Northern Ireland, with the second instalment of £324 arriving later this year.

The first payments were made on 14 July 2022, meaning the government has paid on average over a million families every working day since then.

This is all part of the government’s £37 billion support package for households. Millions will get £1,200 this year to help them with rising costs, including this £650 payment, a £400 grant to help with energy bills, and a £150 Council Tax rebate for the 80% of households in bands A-D.

And in addition to this, nearly one in 10 people will get a £150 disability payment this autumn, while over eight million pensioner households could receive an extra £300 through their Winter Fuel Payments in November and December.

Work and Pensions Secretary, Thérèse Coffey said: “This government said that we would protect those on the lowest incomes, and we have delivered what we said with over 7 million households receiving £326 in the last week.

“There is more help to come for households, with the second half of the £650 payment arriving later this year and further payments for pensioners and disabled people also on the way.”

Chancellor of the Exchequer, Nadhim Zahawi said: “I know that people are finding things difficult with rising prices and increasing pressure on household budgets.

“That’s why we’re taking action to control inflation and providing immediate help for households. It’s so important that over 7 million vulnerable households have received £326 direct payments so far and there is also more help to come, with 8 million of the most vulnerable households receiving £1,200 of direct support to help with bills over the winter.”

In total, over eight million families will be eligible for this payment, with around one million eligible because they receive tax credits and no other eligible benefits. These families will receive their first instalment from HMRC in the autumn, and the second instalment in the winter.

DWP will administer payments for customers on all other eligible means-tested benefits, and no one needs to contact the government or apply for the payment at any stage.

Those who are eligible should look out in their bank accounts for a payment of £326 with the reference “DWP Cost of Living” in their bank accounts. This payment is made automatically, meaning no one has to apply or do anything to receive it.

Eligible claimants who have not received their payment yet should not be concerned, as the DWP expects some payments may take until 31 July 2022 to come through.

One in four families will receive first Cost of Living Payment from today

Almost one in four families across the UK will get £326 sent directly to them from today, with the second instalment of £324 sent later this year as part of the UK Government’s £37 billion support package.

£326 – the first of two cost of living payments – will automatically hit seven million bank accounts between today and 31 July 2022 as part of the government’s £37 billion support package
Second instalment of £324 will follow from the autumn, with separate payments for pensioners and disabled people also coming later this year
Tax credit claimants will receive their first cost of living instalment by autumn

Over eight million households on means-tested benefits will automatically get the first instalment of £326 from this month.

This means that, combined with other support, millions of low-income households across the UK will receive at least £1,200 from the government by Christmas to ease Cost of Living pressures.

On top of that, nearly one in ten people will get the £150 disability payment this Autumn, and over 8 million pensioner households could get an extra £300 from Winter Fuel Payments in November and December.

Prime Minister Boris Johnson said: “Just as we looked after people during lockdown, we will help them get through these tough economic times.

“Today’s payment is the signal to millions of families that we are on their side and we have already promised more cash in the autumn, alongside other measures – including our Help for Households – to support the vulnerable and ease the burden.”

Work and Pensions Secretary, Thérèse Coffey said: “Our help for households will begin landing in bank accounts today as we make sure those on the lowest incomes get the support they need in the face of rising costs.

“This first instalment of £326 should reach all eligible low-income households by the end of July.”

Chancellor of the Exchequer, Nadhim Zahawi said: “It’s great that millions of the families who are most in need are starting to receive their Cost of Living Payments, which I know will be a massive help for people who are struggling.

“Alongside tax cuts, changes to Universal Credit and the Household Support Fund, these payments are a vital part of our £37 billion support package to help people deal with rising prices.”

Most people entitled to the first instalment of the Cost of Living payment will receive it between now and 31 July 2022. Households who are eligible because they receive tax credits and no other eligible benefits will receive their first instalment from HMRC in the autumn, and the second instalment in the winter.

DWP will administer payments for customers on all other eligible means-tested benefits, and customers do not need to contact the government or apply for the payment at any stage.

In addition to the £650 Cost of Living Payment, all domestic energy customers in the UK will receive a £400 grant to help with energy bills, and those in Council Tax bands A-D in England will get an extra £150, which has already been sent to many households. This brings support for millions to £1,200 by the end of the year.

The disability and pensioner payments come in addition to this, as does any support from the Household Support Fund, which was recently extended through to March 2023 with £421 million additional funding.

It is now worth £1.263 billion, and combined with £237 million for devolved nations, means this support package now stands at £1.5 billion. The Household Support Fund is designed to help low-income households in England with food and energy bills, and is distributed by local authorities, who know their areas best.

Total UK Government support this year for low-income families stands at £37 billion, a figure which includes a recent rise to £12,570 for the National Insurance starting thresholds. This will benefit 30 million working people and is worth £330 to a typical employee.

Eight million households to get new cost-of-living payment from 14 July

More than eight million households across the whole of the UK will get a cash payment from July to ease cost of living pressures, Work and Pensions Secretary Thérèse Coffey set out detailed plans yesterday.

Millions will receive the first of two cost of living instalments totalling £650 from 14 July 2022, part of the £1,200 support package this year
Initial automatic instalment will be £326, with the rest to follow in a second instalment in the autumn
Comes as part of £37 billion government package to help families with cost of living pressures

The first instalment of the £650 for qualifying low income households in England, Wales, Scotland and Northern Ireland will land in bank accounts from 14 July 2022, continuing to the end of the month.

The move will see millions of households initially £326 better off as the government delivers significant interventions to support groups who are most vulnerable to rising costs. In total, millions of households will receive at least £1,200 from the government this year to help cover rising costs.

Work and Pensions Secretary, Thérèse Coffey said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living.

“This one-off payment totalling £650 is part of our £37 billion cost of living support package that will put an extra £1,200 into the pockets of those most in need.”

Chancellor of the Exchequer, Rishi Sunak added: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help.

“In July over 8 million people will get their first £326 payment to help with rising prices, as part of a package worth at least £1,200 for vulnerable families. I said we would stand by people when they needed help, and we are.”

The second instalment of £324 will be sent to qualifying low income households in the Autumn. The payments are designed to be deliberately slightly unequal to minimise fraud risks from those who may seek to exploit this system.

The eligibility date for the second instalment will be announced soon.

Low-income households are benefiting from government support in a variety of different ways this year as global inflationary pressures, exacerbated by the unjust war in Ukraine, have caused prices to rise for several essentials.

The government understands that many people are worried about the impact these rising prices will have on their household finances, which is why £37 billion of support is being provided to boost budgets and mitigate the worst of these pressures.

Support includes the direct payment of £650 for over 8 million households on benefits, a separate £300 payment for pensioners, and a £150 payment for disabled people, which can be paid on top of the £650 payment.

This is on top of £400 for all households to help with energy bills, and an extra £150 for properties in Council Tax bands A-D, meaning millions of the lowest-income households will receive at least £1,200 in support this year.

This is all in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants, a rise in the National Living Wage to £9.50 an hour, and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.

The government has also expanded support for the Household Support Fund – which helps people with food and energy bills – with an extra £421 million, on top of £79 million for devolved nations; the total value of this support now stands at £1.5 billion. Fuel duty was also cut by 5p per litre for 12 months in March 2022, and alcohol duty has been frozen for 2022/23.

You can read more about the UK Government’s cost of living support and what is available here.