Cost of living payment: who gets £650 of UK government support, will I get it in 2022 - eligibility explained

A one-off £650 cash payment will be made to millions of low-income households on benefits from next month

Millions of people claiming means-tested benefits will soon receive a £650 payment from the government to help with rising costs.

Chancellor Rishi Sunak unveiled a £15 billion emergency package of support last month, which is targeted towards millions of low-income households.

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Mr Sunak said the government “will not sit idly by” while people are struggling, with the package aimed at reducing the impact of soaring inflation, which has hit a 40-year high.

Among the measures announced is a one-off £650 payment that will be made to low-income homes on benefits.

More than eight million low-income households will receive the payment (Composite: Mark Hall / NationalWorld)

Who is eligible for the £650 payment?

More than eight million households are set to receive the one-off cash payment.

If you receive benefits based on your income, you will be eligible for the one-off payment regardless of how much benefit you get.

These types of benefits are means-tested, meaning people qualify to receive them based on their financial situation. To qualify, you need to demonstrate that your income, savings and capital are below a certain level.

The £650 payment will apply to the claimants of the following benefits:

  • Universal Credit
  • Working Tax Credit
  • Child Tax Credit
  • Pension Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support

The Department for Work and Pensions will make the payment in two lump sums directly into claimants bank accounts.

The first £326 instalment will be paid to all eligible households on 14 July, with the second instalment of £324 to follow in autumn.

Payments from HMRC for those on tax credits only will follow shortly afterwards.

Who is not eligible to receive the £650 payment?

Your eligibility for receiving the £650 payment depends on what type of benefits you get, meaning many claimants may miss out.

Some benefits claimants will not be eligible for the £650 payout (Photo: Adobe)

If your benefits are not means-tested you will not be eligible to receive the cash. This includes people who claim the following benefits:

  • Attendance Allowance
  • Carer’s Allowance
  • Child Benefit
  • Disability Living Allowance (DLA)
  • ‘New style’ Employment and Support Allowance
  • Guardian’s Allowance
  • ‘New style’ Jobseeker’s Allowance
  • Maternity Allowance
  • Personal Independence Payment (PIP)
  • State pension
  • Statutory sick pay
  • Statutory adoption, maternity, paternity and shared parental pay

What other support will there be?

Those who will miss out on the £650 will still benefit from some of the other payments being rolled out by the government.

All UK households will receive a £400 grant in October to ease the cost of spiralling energy bills, which will be partly funded by a £5 billion windfall tax on oil and gas giants.

Mr Sunak said the universal support is being doubled from £200 to £400, and the requirement to pay it back will be scrapped. This means households will receive a £400 discount on their energy bills from October.

A £300 cost of living payment will be given to more than eight million pensioner households in November and December, alongside the Winter Fuel Payment. The payment will be made directly to households in the same way they receive the winter fuel allowance.

Six million people on disability allowance will also receive a one off payment of £150 in September.