Martin Lewis has warned that thousands of people on certain benefits will miss out on the one-off £650 cost of living payment.
Chancellor Rishi Sunak confirmed more help for struggling families last week, as part of a new support package worth £15billion to tackle rising bills.
But the biggest one-off payment, worth £650 per eligible person, is only being offered to those on means-tested benefits.
These are benefits where your income and savings are taken into account.
In an interview with Mr Sunak, shortly after the new financial aid was announced, Martin said that people who receive other benefits will miss out on the £650.
This includes households that claim Personal Independence Allowance, Carers Allowance, and contributory-based Employment and Support Allowance.
Martin urged the Chancellor to rethink the plan by echoing the sentiment of one woman who had messaged him asking for more support from the Government.
He said: "She's right, carers save the government millions by caring - they are asking you for help in a crisis."
Is the £650 payment enough to help you in the cost of living crisis? Let us know: mirror.money.saving@mirror.co.uk
Mr Sunak responded by saying: "Very simply, our existing system is the best guide we have to those who are in need - that eight million are on means-tested benefits. This is where the majority of calls were from for help.”
There are two other one-off payments being made to vulnerable households, which 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.
This is in replacement of the £200 "loan-not-loan" that had originally been announced last year by the Chancellor.
Critics said this support doesn't go far enough to help those worst-hit by the cost of living crisis, as the £200 had to be repaid at a rate of £40 per year from 2023.
This scheme will no longer happen now, as it has been replaced by the £400 discount off your energy bills, with this money no longer needing to be paid back.
"There will always be other people who need support as well. We've put some support in place to help those with disability benefits. The majority of people on carers allowance will get those other things," Mr Sunak told Martin.
"It's right to prioritise most in need. We are putting up national minimum wage and reducing the national insurance thresholds.
“A single mother with two kids on the national living wage - that single mum will be better off by £2,500 to help combat some of the rising bills. I'm not saying that will solve the problem but we are providing support."
Who will receive the £650 payment?
The following means-tested benefits - which are claimed by around 8.4million households - will qualify for the £650 cost of living payment:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
The cash will be split into two payments - one in July and one in the autumn.
Those on tax credits will be paid their first payment from autumn, and their second payment from winter.
Claimants will need to be in receipt of one of these benefits, or have begun a claim which is later successful, as of May 25, 2022 to be eligible for the first of the two instalments.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
Who will receive the £150 payment?
If you're not eligible for the £650 payment, you might be entitled to a smaller sum worth £150 if you claim the following disability benefits:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Scottish Disability Benefits
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
Claimants must be in receipt of, or have begun an eventually successful claim for, one of these benefits as of May 25, 2022, to be eligible for this payment.
You can claim both the £650 and £150 payments if you're eligible.
Who will receive the £300 payment?
Pensioner households who receive the Winter Fuel Payment will receive £300 from the Government.
Winter Fuel Payments are worth between £100 and £300 and are given to those over state pension age, usually in November and December.
For 2022/23, these payments will be made available for households that include someone born on or before 25 September 1956.
