Cost of living payment: when is it due and will it be delayed?

Delays in cost of living payments could impact those applying for Universal Credit, income-related ESA and JSA, Income Support and Pension Credit

Payments will begin to be issued on Thursday, July 14, but will be staggered due to the number of payments made. DWP Minister David Rutley said some may not arrive until the end of the month.

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Here’s everything you need to know about potential delays in cost of living payments.

What are the cost of living payments?

Cabinet advisers also agreed yesterday (Thursday July 7) on a new £250,000 Cost of Living Crisis Fund, with the first £50,000 going immediately to food banks to help meet levels of need without previous in district now Photo by Tolga Akmen/AFP (Photo by TOLGA AKMEN/AFP via Getty Images)

In June, Rishi Sunak announced plans to issue a £650 payment to vulnerable households to help with the cost of living. Payment will be made in two installments – one in July, one in the autumn – which will total £650 per household.

The first installment will be a payment of £326, with the remaining £324 forming the second installment.

What makes a person eligible to receive payments?

Anyone claiming any form of means-tested benefit is eligible to receive this cost-of-living payment.

This includes anyone on child tax credit, income-based jobseeker’s allowance, income-related employment and support allowance, income support, a pension credit, a universal credit and a working tax credit.

Why might they be delayed?

DWP Minister David Rutley explained that the payments, which begin on Thursday July 14, will be staggered due to demand. Not all eligible households will receive a payment immediately on this date.

In response to questions, Rutley said that while the DWP “currently expects the majority of payments to be made by the end of July, there could be potential delays for a small minority of cases due to their unique characteristics”.

Who might be affected by the delays?

According to the mirrorthis delay could impact those applying for Universal Credit, income-related ESA and JSA, Income Support and Pension Credit.

What if you are entitled to a payment, but you do not receive one?

The DWP advised that for anyone who thinks they are eligible for a payment but have not received one, people should contact the office that usually pays your benefits. They should be in the best position to help in this scenario.

What about people who receive tax credits?

Individuals who receive tax credits will receive this cost of living payment on a deferred schedule. Their first payment will arrive in the fall and their second payment will follow in the winter.

No timetable or fixed date has been announced for these payments.

How do I apply to receive payments?

Payments will automatically arrive in the bank accounts of eligible individuals – there is no need to make a specific request.

When is the second payment due?

The second installment – totaling £324 – is due in the autumn, but there is no exact date yet for when it might arrive.

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Elaine R. Knight