Millions of UK households will receive £326 cost of living payment

Millions of households will see a £326 government cost of living payment in their bank accounts from TODAY – find out if you’re eligible

  • Around 8 million UK households will receive a £326 cost of living payment this month
  • The next installment will hit people’s bank accounts in the fall
  • Separate payments for people with disabilities and pensioners later this year

Around eight million households across Britain will start receiving the first of two payments totaling £650 to ease cost of living pressures from today.

A first installment of £326 will start being paid to low-income households on benefits, the Department for Work and Pensions has said. This will affect the bank accounts of eligible households from today until July 31.

More than eight million households on means-tested benefits will automatically receive the first payment of £326 from this month.

Payment: From today a first installment of £326 will start being paid to low-income households on benefits, the DWP has said

The second payment of £324 will follow in the autumn, with separate payments for disabled and pensioners also later this year.

Payments will be tax-free, will not count towards the benefit cap, and will have no impact on existing benefit allocations.

People may be eligible to receive the £650 in two lump sums if they are in receipt of certain supports, such as Universal Credit, income-based Jobseeker’s Allowance, Employment and Support Allowance income-related, income support, pension credit, child tax credit or employment tax. Credit.

Eligible individuals will be paid automatically, so they do not need to apply and payments may appear on accounts as “Cost of Living DWP”.

Retiree households will also get an extra £300 to help cover rising energy costs this winter, while people on disability benefits will get an extra £150 payment in September.

From October, households will also get a £400 cut on their energy bills.

Prime Minister Boris Johnson said in a statement today: ‘Just as we looked after people during lockdown, we will help them through this difficult economic time.

Struggling with the cost of living?

View government announcements “Cost of Living Support” website and find out what help you could receive during the cost of living crisis.

“Today’s payment is a signal to millions of families that we are on their side and we have already pledged more money in the fall, alongside other measures – including our household support – to support the vulnerable and ease the burden.”

Work and Pensions Secretary Therese Coffey said: ‘Our household support will start to land in bank accounts today as we make sure those on the lowest incomes get the support they need in the face of to rising costs.

“This first installment of £326 should reach all eligible low-income households by the end of July.”

The government added in its statement today: ‘Total government support this year for low-income families is £37billion, a figure which includes a recent increase to £12,570 for thresholds departure from national insurance. It will benefit 30 million workers and is worth £330 for a typical employee.

Households have been warned that they expect to see their energy bills soar further in the coming months.

Helping households:

Helping households: ‘Today’s payment is a signal to millions of families that we are on their side,’ Prime Minister Boris Johnson said today

Cornwall Insight experts said bills could rise from a current high of £1,971 to £3,245 in October and then to £3,364 early next year.

The forecasts are based on what an average household will spend on gas and electricity over the course of a year. A household that buys more energy could have higher bills.

According to recent figures from the Office for National Statistics covering adults in Britain between late June and early July, around nine in 10 people said their cost of living had risen from the previous month. Inflation is expected to reach 11% in the coming months.

About half of people said they bought less food when shopping and 48% said they had to spend more than usual to get what they normally buy.

The vast majority of respondents have taken at least one action to save energy in the past year.

Last week the Office for Budget Responsbility said: ‘Many threats remain, with rising inflation likely to tip the economy into recession, continued uncertainty over our future trading relationship with the EU , a resurgence in Covid cases, a changing global climate and rising interest rates all continue to weigh on the fiscal outlook.

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Elaine R. Knight