Cost of living payment: Brits warned they could miss £650 | Personal finance | Finance

Last week, Chancellor Rishi Sunak announced that all households were to receive a £400 payment to help with the expansion of the Energy Bill Support Scheme. However, it was also announced that a payment of £650 would be made to households deemed to be ‘the most vulnerable’.

The higher payment is made available to low-income earners, such as those applying for Universal Credit, Pension Credit, and tax credits.

Brits should be aware that they could miss out on this £650 payment, with eligibility criteria set by the government.

Some will not be able to receive the payment at all, while others will have to wait longer to receive it.

The first reason someone could miss the £650 cost of living payment is if they don’t apply for a means-tested benefit.

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Instead, payments for households of the tax credit will not begin until the fall.

This could be attributed to the fact that tax credits are overseen by HM Revenue and Customs (HMRC) rather than the DWP.

Another reason people may end up missing the payment is the date they applied for means-tested benefits.

People must have been entitled to one of the eligible benefits on May 25, 2022 to get the first payment.

If they weren’t, they could lose the first tranche, but potentially benefit from the second.

Britons claiming other benefits may also miss the higher £650 payment.

This includes those claiming Personal Independence Payment (PIP) and Attendance Allowance.

However, the government provides a separate payment to people who receive disability benefits.

This payment will be worth a total of £150 to provide additional support for these people.

The government has said people with disabilities are one of the groups most vulnerable to rising prices.

Rishi Sunak said, “We know people are facing cost-of-living challenges and that’s why I’m stepping in with extra support to help with rising energy bills.

“We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That’s why I’m targeting this important support on millions of the most vulnerable people in our society.

“I said we would support people and this support does that.”

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Elaine R. Knight