When will I get cost of living payment? Date first instalment of £650 will be paid 2022 - and who will get it

More than eight million households are eligible to receive a one-off £650 cash payment

Millions of homes across the UK will receive a cost of living payment arrive in their bank account from this month as part of the government’s emergency package to help with soaring energy prices.

Former Chancellor Rishi Sunak unveiled a £15 billion of support last month, including a one-off £650 payment that will be made to low-income households on benefits.

Eight million households will see the first cost of living payment arrive on 14 July.

When will the £650 payment be made?

Around eight million households should see the first instalment of the £650 payment arrive in their bank account from today (14 July), the Department for Work and Pensions (DWP) confirmed.

From that date, £326 will start to be paid out to low-income households on benefits.

However, the DWP has warned there may be a delay to the payment due to the volume of people in line to receive it, saying “may be potential delays for a small minority of cases due to their unique characteristics”.

In response to a recent query from Independent MP Neil Coyle asking whether all Universal Credit claimants will receive the payment at the same time as those on other benefits, the DWP said payments will be staggered due to the high number of people entitled to the support.

In a written response, Work and Pensions minister David Rutley said: “Due to the volume of people entitled to the payment, it is not possible to issue all of the Cost of Living Support Payments at the same time.

“Issuing payments will be staggered, but not by benefit type, starting on July 14, 2022.”

He added: “We currently expect the majority of payments to be made by the end of July, there may be potential delays for a small minority of cases due to their unique characteristics.”

It means the vast majority of the eight million people eligible should receive the first part of the £650 cost of living payment between 14 and 31 July.

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.”

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.

(Graphic: Mark Hall / NationalWorld)

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.

Every household in the country, regardless of their financial situation, will also get a £400 discount on energy bills in October, which will be partly funded by a £5 billion windfall tax on oil and gas giants.