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Cost of living payment: 8 million to get first sum from 14 July

·Finance Reporter, Yahoo Finance UK
·2-min read
cost of living  Local resident Dave sits at the Community Food Hub in London, Wednesday, May 4, 2022. Across Britain, food banks and community food hubs that helped struggling families, older people and the homeless during the pandemic are now seeing soaring demand. The cost of food and fuel in the U.K. has risen sharply since late last year, with inflation reaching the highest level in 40 years.  (AP Photo/Frank Augstein)
The two cost of living payments will be paid automatically to anyone receiving any benefit. Photo: Frank Augstein/AP

Eight million low-income households will get their £326 cost of living payment from July 14 under plans confirmed by the government this Wednesday.

Another £324 will hit their accounts in the autumn, according to the Department for Work and Pensions.

The payments, totalling £650, are part of the government’s plan to put an extra £1,200 “into the pockets of those most in need”.

The first instalment will arrive between July 14 and July 31 into benefit claimants’ bank accounts, directly from the Department for Work and Pensions (DWP).

Read more: UK real wages fall to 20-year low as job vacancies rise to 1.3 million

Claimants must have begun a claim for these benefits by 25 May 2022 at the latest to qualify for the first of the two payments.

But those eligible for the payment, there is no need to apply as the money will be will be transferred automatically.

The cut-off date for the second period has not yet been confirmed.

The payment will be tax-free for all eligible groups, will not affect the benefit cap and will not affect existing benefit awards.

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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.”

It comes as part of a £37bn government package to help families as energy, food and fuel bills soar.

UK inflation jumped to 9% in the 12 months to April, up from 7% in March and the highest level it has reached since 1982.
UK inflation jumped to 9% in the 12 months to April, up from 7% in March and the highest level it has reached since 1982.

"We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help," said Chancellor Rishi Sunak.

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All homes in the UK are set to get £400 for help with energy bills this autumn, along with a previously announced £150 council tax rebate.

There will also be a separate £300 payment for pensioners, and a £150 payment for disabled people, both of which can be paid on top of the £650 cost of living payment.

"I said we would stand by people when they needed help, and we are,” Sunak added.

Watch: How to save money on a low income