Millions of households will start to receive the first half of their £650 cost of living payment from next week.
The money is being awarded to those who claim means-tested benefits - so those where your income and savings are taking into account.
Chancellor Rishi Sunak confirmed the support to help struggling families cope with the fastest rising standard of living in 40 years.
It comes as inflation reached a new 40-year-high of 9.1% as the cost of living crisis continues to hit struggling families.
Here, we explain everything you need to know about the £650 cost of living payment.
First half of the £650 is due from next week
The £650 cost of living payment is being split into two parts - and some people will have longer to wait until they receive the cash.
The first £326 instalment will hit bank accounts from July 14 for those who claim:
- Jobseeker’s Allowance (Income-based)
- Employment and Support Allowance (Income-related)
- Income Support
- Pension Credit
- Universal Credit
Payments for this first half should arrive by the end of July.
The second £324 payment will follow in autumn, although no set date has been announced yet.
If you claim tax credits - so Working Tax Credit or Child Tax Credit - you won’t receive the first half of your £650 payment until the autumn, with a second payment to follow in winter.
Again, no exact date has been confirmed by the Government.
Am I eligible for the £650 payment?
You must have been claiming one of the benefits we've mentioned above by a certain date to receive the first instalment of the £650.
The qualifying period is April 26, 2022 to May 25, 2022.
For Universal Credit, you must have been entitled to a payment, or later found to be eligible, for an assessment period that ended within these dates.
This timeframe is only for the first instalment, and includes tax credit claimants.
The deadline for applying for the second payment has not yet been set - so this means thousands of Brits who start a claim at a later date might end up being eligible for the final instalment.
The Government has not said when it will release the criteria for the second payment.
What other support is there?
If you’re not eligible for the £650 cost of living payment, there are two other one-off sums being made to vulnerable households.
This includes £150 for those who claim certain disability benefits and £300 for pensioners in receipt of Winter Fuel Payments.
Every home in England, Scotland and Wales will also receive £400 off their energy bills, spread out over six months from October.
The Household Support Fund has been extended as well by another £500million, to help families who can't claim any cost of living payments.
Some of the help that is offered through the Household Support Fund includes money towards your bills and supermarket vouchers.
However, the support does vary between councils - as well as the eligibility criteria.
