More than 8 million households across the UK will receive a cash payment from next month to ease the rising cost of living pressures, it has been announced. The Department for Work and Pensions (DWP) said that claimants could benefit from the offer as soon as next month.
The first instalment of the £650 will land in bank accounts from July 14, continuing to the end of the month, reports Daily Record. People who claim both a means-tested benefit and Tax Credits from HM Revenue and Customs (HMRC) will receive the £326 from DWP next month.
Claimants who only receive either Working Tax Credits or Child Tax Credit will receive the first of their two payments later this year - a date has still to be announced. However, some people are still unsure if the payment for £326 is for an individual or if it’s per household.
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Is the £650 cost of living payment per person or per household?
Forget the overall £650 payment for a minute.
This focuses on the upcoming payment for £326 because the qualifying date for the Autumn payment has not been announced and claimants’ circumstances may change between now and then.
The payment depends on your household circumstances:
- If you claim as an individual for any of the qualifying means-tested benefits - you will get one payment for £326 in July
- If you, claim as a couple for any of the qualifying means-tested benefits - you will get one payment for £326 in July
Essentially, this is the equivalent of one payment per claim.
Mixed households
Here's an example of a mixed household to help you understand who will qualify for the July payment. Four people live in a mixed household, two are claiming a qualifying benefit jointly as a couple, the other two adults have two separate claims.
Who gets what?
- Three payments for £326 will be made to the household in July - one for the couple, one each for the other two adults
- This is a total of three claims for four people under one roof, which means three payments.
We put this example to the DWP as mixed households were the most common query being asked about on Facebook. DWP said: “As long as the people in the house-share get their own separate Universal Credit claims already - so the couple have one claim, the two other adults have one claim each - giving a total of three claims in the house then, yes, it’ll be three payments to match the three claims.”
Qualifying benefits for the £326 payment
You may get a payment of £326 paid into your account from July 14 if you’re getting any of the following:
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credits - see further down for full details
- Child Tax Credits - See further down for full details
Eligibility for £326 payment
To get the first Cost of Living Payment of £326, you must have been entitled to a payment (or later found to be entitled to a payment) of either:
- Universal Credit for an assessment period that ended in the period April 26, 2022 to May 25, 2022
- Income-based JSA, Income-related ESA, Income Support or Pension Credit for any day in the period April 26, 2022 to May 25, 2022
You will not be eligible for a payment if you get:
- New Style Employment and Support Allowance
- Contributory Employment and Support Allowance
- New Style Jobseeker’s Allowance, unless you get Universal Credit
£326 payment if you get Tax Credits
To get the first Cost of Living Payment of £326, you must have been entitled to a payment (or later found to be entitled to a payment) of either:
- Child Tax Credit
- Working Tax Credit
Eligibility for £326 payment
To get the first Cost of Living Payment of £326, you must have received a payment, or an annual award of at least £26, of Tax Credits on any day in the period April 26, 2022 to May 25, 2022.
If you get both Child Tax Credit and Working Tax Credit, you will receive a Cost of Living Payment for Child Tax Credit only.
When you will be paid
If you only receive Tax Credits, you will get the first payment of £326 from Autumn 2022 and the second payment of £324 from winter 2022 - if you’re entitled.
If you get Tax Credits from HMRC and a low income benefit from DWP, you will get a Cost of Living Payment from DWP only, starting from July 14.
If you also get a qualifying disability benefit, you may get an additional £150 Disability Cost of Living Payment from DWP.
£150 if you get certain disability benefits
You may get a lump sum payment of £150 if you’re getting any of the following:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Armed Forces Independence Payment
- War Pension Mobility Supplement
Eligibility
You must have received a payment (or later receive a payment) of one of these qualifying benefits for May 25, 2022 to get the payment. If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get a Disability Cost of Living Payment from DWP only.
When you will get paid
Payments will be made in September 2022.
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