Cost of Living Payments – How Does It Work?

Millions of people on means-tested benefits will receive the first of two Cost of Living Payments totalling £650
from 14 July 2022, as part of a £37billion government package to help families with cost of living pressures.
The first £326 instalment for qualifying low-income households in England, Wales, Scotland and Northern
Ireland will be paid by their usual payment method from 14 July 2022, continuing to the end of the month. For
those eligible, the rest will follow in a second instalment in the autumn.

People receiving tax credits and no other eligible benefits will receive their first payment from HMRC in
autumn and the second in winter.

In total, millions of vulnerable households will receive at least £1,200 from the Government this year to help
cover rising costs. There are specific payments for those on means tested benefits, for pensioners, those on
disability benefits and to help people with energy bills.

Check eligibility here:
There is also helpful information about further support available on the Cost Of Living campaign website.


More Key Points

More than eight million people on means-tested benefits will receive a payment of £650 this year, made in two instalments. This includes all eligible households receiving at least 1 pence on the qualifying date of the following benefits; Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Pension Credit, Working Tax Credit and Child Tax Credit
• The first payment of £326 will be made to households in payment of a qualifying benefit between April 26 and May 25 from July 14, with a further £324 to be paid from September – totaling £650. For eligible households on tax credits only, the first payment will be made in the autumn and the second in the winter. Payments will be made automatically via usual payment methods – people do not need to contact HMRC or DWP or apply for the payment (Read more)
• There will also be a £150 payment made to people on qualifying disability benefits which can be in addition to the above due to be paid in September
• There will also be an extra £300 for pensioner households paid as an increase to their winter fuel payment to be paid from mid-November
• In addition to these payments, there is also the Energy Bills Support Scheme which will see all domestic energy customers receive a one-of rebate of £400 paid by their energy providers. This money will not need to be paid back
• Households liable for Council Tax in Bands A-D in England have received a £150 Council Tax Rebate to help with the rising cost of bills (Read more)
• And the government has also extended the Household Support Fund until March 2023, providing an extra £421million of local support in England and £79 million to the Devolved Administrations

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