The roll-out of a £650 one-off payment to support millions of the UK’s most vulnerable households is due to start this month.
Announced by Rishi Sunak in May as part of a package of measures, the one-off grant aims to ease the strain caused by the UK’s worsening cost of living crisis.
Another initiative includes a “windfall tax” on energy giants and doubling the existing £200 energy rebate and a one-off council tax rebate, which will be phased in across the UK from April.
Here’s when you can expect to receive your living expenses payment, who’s entitled to it, and why it may be slightly delayed for some claimants.
When will I receive my living expenses payment?
The government has announced that the payment will be made directly to households on means-tested benefits in two lump sums, one in July and the other in the autumn.
The first installment of £650 will automatically land in bank accounts from Thursday 14th July and will continue until the end of the month.
In response to a written question in Parliament, Department for Work and Pensions (DWP) minister David Rutley said payments would be staggered due to demand, adding that some may not arrive before the end of the month.
He explained: “We currently expect the majority of payments to be made by the end of July, there may be potential delays for a minority of cases due to their unique characteristics.”
Rishi Sunak announced a raft of measures to tackle the cost of living crisis (Image: AFP/Getty Images)
The first installment will be a payment of £326, with the remaining £324 coming in the second installment.
According to the government: “Payments are designed to be deliberately slightly uneven to minimize the risks of fraud by those who may seek to use this system.”
For those who qualify for a single payment through Tax Credit and Working Tax Credit, the two installments will be paid in autumn and winter instead. These payments will also be £326 and £324 respectively.
The government advises applicants for joint benefits: “If you have a joint claim with a partner, you will receive one payment of £650 for both of you, paid in two lump sums from July 2022 and in autumn 2022 if you are eligible. “
More on the cost of living
Who can claim the £650 payment?
Under government guidance, the payment will be given to all households on means-tested benefits, including those receiving the following:
- Universal credit
- Income-based Jobseeker’s Allowance
- Income-related employment and living allowance
- Income support
- Working tax credit
- Child tax credit
- Pension credit
It advises that applicants will need to be receiving one of these benefits or have launched a successful claim from Wednesday 25 May.
If you’re eligible, there’s no need to apply – £650 will be sent to you automatically.
It will be tax-free for all eligible groups, will not affect the benefit cap and will not affect existing benefit awards.
Means-tested benefits are awarded based on your income and how much capital you have – if someone can prove their income and capital are below a certain level, they qualify.
The government also advises: “You will not receive a payment if you have already received a living expenses payment from HMRC because you were entitled to tax credits.”
Experts have warned that families who lose their jobs after the deadline to claim benefits could miss out on some or all of the support.
There is no reduction in grant allocations, meaning the full amount will apply to those claiming the lowest amount of benefits.
Those just outside the Universal Credit income bracket will not be entitled to any additional benefits.
There are also concerns that the poorest often do not know they can claim benefits even though they are eligible, making it difficult to target additional means-tested support.
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