Cost of living payment: 8 million to get first sum from 14 July

Eight million low-income households will get their £326 cost of living payment from July 14 under plans confirmed by the government this Wednesday.

Another £324 will hit their accounts in the autumn, according to the Department for Work and Pensions.

The payments, totalling £650, are part of the government’s plan to put an extra £1,200 “into the pockets of those most in need”.

The first instalment will arrive between July 14 and July 31 into benefit claimants’ bank accounts, directly from the Department for Work and Pensions (DWP).

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Claimants must have begun a claim for these benefits by 25 May 2022 at the latest to qualify for the first of the two payments.

But those eligible for the payment, there is no need to apply as the money will be will be transferred automatically.

The cut-off date for the second period has not yet been confirmed.

The payment will be tax-free for all eligible groups, will not affect the benefit cap and will not affect existing benefit awards.

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Work and Pensions secretary, Thérèse Coffey, said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living.”

It comes as part of a £37bn government package to help families as energy, food and fuel bills soar.

"We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help," said Chancellor Rishi Sunak.

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All homes in the UK are set to get £400 for help with energy bills this autumn, along with a previously announced £150 council tax rebate.

There will also be a separate £300 payment for pensioners, and a £150 payment for disabled people, both of which can be paid on top of the £650 cost of living payment.

"I said we would stand by people when they needed help, and we are,” Sunak added.

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