Planned payments of £650 to vulnerable households may be delayed, the Department for Work and Pensions have announced.
The payments will begin being issued on Thursday 14 July, but will be staggered due to the number of payments being made. DWP minister David Rutley said that some may not arrive until after the end of the month.
Here is everything you need to know about potential delays to the cost of living payments.
What are the cost of living payments?
In June, Rishi Sunak announced plans to issue a payment of £650 to vulnerable households to alleviate the cost of living. The payment will be made in two instalments – one in July, one in the autumn – which will together total £650 per household.
The first instalment will be a payment of £326, with the remaining £324 forming the second instalment.
What makes someone eligible to receive the payments?
Anyone who claims any form of means tested benefits is eligible to receive this cost of living payment.
This includes anyone receiving Child Tax Credit, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Income Support, Pension Credit, Universal Credit and Working Tax Credit.
Why might they be delayed?
DWP minister David Rutley has explained that payments, which begin on Thursday 14 July, will be staggered due to demand. Not every eligible household will receive a payment immediately on that date.
In response to questions, Rutley said that while the DWP “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.”
Who might be affected by the delays?
According to the Mirror, this delay might impact those who claim Universal Credit, income-related ESA and JSA, Income Support, and Pension Credit.
What if you’re eligible for a payment, but don’t receive one?
The DWP has advised that, for anyone who believes they’re eligible for a payment but hasn’t received one, people should contact the office that typically pays your benefits. They should be best placed to assist in this scenario.
What about people who receive Tax Credits?
People who receive Tax Credits will receive this cost of living payment on a delayed timetable. Their first payment will arrive in the autumn, and their second payment will follow in the winter.
No fixed timeline or date has been announced for those payments.
How do you apply to receive the payments?
The payments will arrive automatically in the bank accounts of eligible people – there’s no need to apply specifically.
When is the second payment expected?
The second instalment – totalling £324 – is due to be paid in the autumn, but there’s no specific date for when it might arrive yet.