MILLIONS of people will get a one-off cash payment to help in the cost of living crisis.
Cash payments are being made to millions of people on benefits from JulyCredit: Getty
Chancellor Rishi Sunak announced a package of support worth as much as £1,500 for the poorest households.
It comes as energy bills are rocketing along with other living costs like food and fuel.
Billpayers will get a £400 discount on their energy from October, among other help.
That replaces the energy bill rebate scheme that would have given £200 off, but then repaid over five years.
Instead bills for millions of households will be reduced by double that amount – and the cash won’t have to be repaid.
On top of these payouts, and if you’re eligible, you could get a £650 one-off payment.
Here’s we explain how the new support scheme works, known as the Cost of Living Payment.
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
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 will be made “from July” and a second will arrive in Autumn.
Specific dates for the payments have not been announced yet.
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 £325 in July and another payment in £325, if you’re eligible on both dates.
The payments will be tax-free and won’t affect any benefits you’re getting, or count towards the benefit cap.
You don’t have to wait for extra help as there are other grants and payments you could get now if you’re on benefits and struggling to get by – check them out here.
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