The £650 cost of living payment for people claiming certain benefits will be split into two installments, with the first half to be paid into accounts in July.
Around 8.4 million claimants will receive the money under the scheme announced by Chancellor Rishi Sunak as part of a series of emergency measures. Mr Sunak had been under pressure to act amid rising bills and an impending increase in the energy cap due in October
Those who receive means-tested benefits, such as Universal Credit and tax credits, are eligible for the money. When you get them depends on what you claim. Claimants of income-based Jobseeker’s Allowance, Employment Allowance and Income-Related Support, Income Support, Pension Credit and Universal Credit will get theirs first. People on tax credits won’t get the money until the fall.
Read more:Does every pensioner benefit from the £300 cost of living increase?
Who receives the £650 cost of living payment?
People applying for low-income benefits will receive the £650 cost of living payment. To get the first installment, due in July, you must have applied for one of the benefits below by May 25, 2022:
- Income-Based Jobseeker’s Allowance
- Employment and Income Support Benefit
- Income support
- Pension credit
- Universal Credit
Those claiming child tax credit and working tax credit can also get the payments, although they are made later than the payments for those receiving the benefits mentioned above.
When will the cost of living payment of £650 be made?
For those applying for low-income benefits like Universal Credit, the payment will be split in half. An initial payment of £325 will be made in July, according to the DWP. A second installment of £325 will be made in the fall.
Those claiming the child tax credit and the working tax credit “will receive one payment beginning in fall 2022 and a second payment beginning in winter 2022,” the DWP says.
Further details on the second payment for claimants will be released later.
How will the £650 be paid? Should I apply?
Payments will be made automatically. The DWP maintains a register of eligible persons according to the benefits requested. It is not necessary to claim the £650 payment if you are claiming the qualifying benefits.
Is it £650 per household or £650 per person?
The cost of living payment of £650 will be made individually or to households, depending on your situation. The DWP says those who claim benefits jointly, such as a couple claiming Universal Credit together, will only receive one payment. But where there are multiple people in a household, each claiming individually eligible benefits, the £650 payments will be made to each eligible person.
A DWP spokesperson told ChronicleLive: “If you have a joint claim with a partner for an eligible benefit, you will receive a payment of £650 for the two of you, paid in two lump sums from July 2022 and onwards. Fall 2022, if eligible So basically if a couple has a claim for universal credit or tax credits, they would get a payment.
“However, if other adults living in the same household are applying for Universal Credit – that is, if it’s an HMO (a flat share) for example, it would be granted on a per-application basis.”