The DWP has announced the first cost of living payment will be exactly £326, and will land in claimants’ bank accounts at some point between July 14 and July 31 – unless you’re on Tax Credits
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Millions of Brits on benefits will get their £326 cost of living payment from July 14 under plans confirmed by the government on Wednesday.
Work and Pensions Secretary Therese Coffey will announce further details of a support package unveiled by the Chancellor last month.
She will confirm the date of the first payment to people on Universal Credit, income-related ESA and JSA, Income Support, and Pension Credit.
It will arrive between July 14 and July 31 into benefit claimants’ bank accounts, directly from the Department for Work and Pensions (DWP).
There is no set guidance on exactly when payments will arrive within this period, but they will be separate to the usual day for benefit payments.
Those on Working Tax Credit and Child Tax Credit will have to wait until later in the summer because those payments are run by HMRC.
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In total 8.3million UK benefit claimants will receive the payments, along with a second instalment of £324 later in the autumn.
Claimants must have begun a claim for these benefits by 25 May 2022 at the latest to qualify for the first of the two payments.
The cut-off date for the second period has not yet been confirmed. The payments are slightly different to reduce the risk of fraud.
The £650 will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
It was part of a range of other measures unveiled by Rishi Sunak after months of pressure over soaring energy bills.
The Chancellor also announced £400 for all households off energy bills, from July and October respectively.
The hated “buy now pay later” £200 discount off energy bills in October was scrapped after an outcry.
But he was criticised after admitting people with second homes – including himself – would get the £400 twice. He is giving his discount to charity.
There will also be £300 for pensioners in November and December, and £150 for disabled people in September.
Some £10bn of the £15bn will be funded by borrowing despite the Chancellor repeatedly saying he could not borrow his way out of the crisis.
And Treasury insiders have not ruled out the giveaway making inflation worse.
Mr Sunak said: “I said we would stand by people when they needed help, and we are.”