More than eight million households across the UK will soon receive the first instalment of the £650 cost of living payment.
Intended to help people struggling with soaring costs and energy bills, the non-taxable payment was announced by Rishi Sunak in May.
The final components of the UK Government's support package have now been passed as legislation, and it has received Royal Assent.
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This means the aid package — which in total will be worth up to £1,200 for millions of households across the UK — can now be distributed. Since the payment is made automatically, you do not need to apply for it.
As reported by the Daily Express, the first part of the £650 cost of living payment will be paid starting from July 14 onwards. Around eight million eligible households receiving means-tested benefits will receive the £326 sum directly into their bank account.
Work and Pensions Secretary Therese Coffey said: “We’re boosting the budgets of millions of stretched families in every part of the UK, helping them with the cost of living. In total, low income households are set to receive at least £1,200 in support this year with the initial payment of £326 landing in bank accounts from July.
“There’s more help to come later this year, with additional top ups for pensioners and disabled people.”
According to the UK Government, almost a quarter of households will qualify for the payment. Rishi Sunak also made a statement regarding the latest update, commenting: “I know that people are worried about rising prices, which is why our targeted support package is giving eight million of the most vulnerable families £1,200 this year.
“We are using all the tools at our disposal to combat rising prices and supporting families who are disproportionately impacted by increasing costs.”
Approximately one out of 10 people in the UK will qualify for a £150 disability boost. Additionally, more than eight million pensioner households may also be eligible for an additional £300 top-up to the Winter Fuel Payment later this year.
Regarding the second instalment of the cost of living payment, a date has not yet been set. Despite this, the UK Government has indicated that it will be “towards the end of the year”.
While the eligibility date has not yet been set, it has confirmed the payment will be £324. Those who are eligible through their tax credit claim will have HMRC issue these payments automatically, with the first instalment paid out by autumn. The DWP will administer payments for customers on all other eligible means-tested benefits.
