People on Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA) and Pension Credit will be among the first to receive the £650 cost of living payment of the government. It will likely be a lifeline for thousands of families struggling to keep up with rising bills.
Five groups of people will be the first to receive the payment announced by Chancellor Rishi Sunak in a package of measures aimed at mitigating the effects of soaring food and energy prices. The first installment of the money is expected to arrive in people’s accounts between July 14 and the end of the month.
The Department for Work and Pensions (DWP) has confirmed that 8.2 million people in the UK who receive benefits will receive the money in two instalments, BirminghamLive reports. The first installment is £326.
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The payment will come with other support including £150 for all households through the council tax payment system, £400 from energy suppliers from October, an additional £300 for pensioners who receive winter fuel payment and £150 for those on disability benefit.
Who will receive the £650 cost of living payment?
Five groups of people will be the first to receive payment. You should receive two lump sums of £326 and £324 if you receive any of the following:
- Universal Credit
- Jobseeker’s Allowance (JSA) based on income
- Income-related Employment and Support Allowance (ESA)
- Income support
- Pension credit
Most of the first payments of £326 will be made between July 14 and the end of this month. The second part will take place in the fall, the exact date will be announced later.
Who is eligible exactly?
To get the first cost of living payment of £326, you must have been entitled to a payment (or later be entitled to a payment):
- Universal Credit for a trial period that ended in the period from April 26, 2022 to May 25, 2022
- Income-Based JSA, Income-Based ESA, Income Support or Pension Credit for any day from April 26, 2022 to May 25, 2022
The DWP also clarified that people on specific inherited benefits will not receive this payment because it only applies to those on means-tested benefits. Legacy benefits campaigners have criticized the support package and said a general increase in all benefits would have been a much fairer way to deal with the cost of living crisis.
In addition, HMRC will make a payment of £650 to those benefiting from the in-work tax credit and child tax credit. In these cases, the first payment of £326 will be made in the autumn and the second payment of £324 this winter.
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