When will the £650 payment be made?
Eight million households will see the first instalment of the £650 payment arrive in their bank account on 14 July, the Department for Work and Pensions (DWP) has confirmed.
From that date, £326 will start to be paid out to low-income households on benefits.
The second instalment of £324 will then follow in the autumn, although an exact date for the final instalment is yet to be announced.
The £650 payment is part of a package of support worth £1,200 that vulnerable households will receive this year, which also includes a previously announced £150 council tax rebate.
Work and Pensions Secretary Therese Coffey said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living.
“This one-off payment totalling £650 is part of our £37 billion cost-of-living support package that will put an extra £1,200 into the pockets of those most in need.”
Legislation to confirm the £650, as well as the other elements of the government’s support package, is being laid on Wednesday (15 June).
Mr Sunak said: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help.
“In July, more than eight million people will get their first £326 payment to help with rising prices, as part of a package worth at least £1,200 for vulnerable families. I said we would stand by people when they needed help, and we are”.
Who will get the £650 payment?
Eight million low-income households that receive benefits based on income will be eligible for the one-off payment, regardless of how much benefit you get.
These types of benefits are means-tested and to qualify, people need to demonstrate that their 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 DWP will make the payment in two lump sums directly into claimants bank accounts, with the first paid from 14 July and the second in autumn.
Payments from HMRC for those on tax credits only will follow shortly afterwards.
Those who will miss out on the £650 will still benefit from some of the other payments being rolled out by the government.
Pensioners will receive a £300 payment in November/December alongside the winter fuel payment in a move costing £2.5 billion, while £150 will be paid by September to people receiving disability benefits.