From next month, millions of households throughout the country will begin getting their £650 cost of living grants.
Rishi Sunak stated that on July 14, more than eight million of the UK’s lowest-income households will get their first instalment of £326 to deal with skyrocketing energy prices.
The second installment will be delivered in the autumn as part of a help package “worth at least £1,200 for vulnerable families,” which will also include the previously announced £150 council tax rebate.
‘We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help,’ said the Chancellor.
Increasing petrol prices, energy bills, supermarket pricing, and other charges have added hundreds to thousands of pounds to families’ monthly budgets.
‘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,’ said Work and Pensions Secretary Therese Coffey.
‘This one-off payment totalling £650 is part of our £37 billion cost-of-living support package that will put an extra £1,200 into the pockets of those most in need.’
Legislation to confirm the £650, as well as other components of the Government’s assistance package, will be introduced on Wednesday.
Pensioners will also receive a £300 payment in November/December, in addition to the winter fuel payment, under the Government’s proposal, which will cost £2.5 billion, while persons receiving disability payments will receive a £150 payment from September.
Every home in the country, regardless of income level, would receive a £400 energy bill cut, raising concerns that the policy may further fuel inflation.
The Chancellor unveiled the emergency cost-of-living assistance plan last month, saying that £5 billion would be paid for by a fee on the earnings of oil and gas giants, with the remaining £10 billion financed by additional borrowing.
Who is eligible for the cost-of-living grant?
Households receiving means-tested benefits will be eligible for the stipend.
This includes:
- Universal Credit
- Income-based Jobseekers’ Allowance
- Income Support
- Working tax credit
- Income-related employment and support allowance
- Child tax credit
- Pension credit
Do you need to apply for the cost-of-living grant?
No, if you are eligible for the grant, you will be automatically paid the £650 in two installments.
‘Our policy will provide a larger average payment this year of £650, whereas uprating the same benefits by 9% would be worth only on average £530,’ added the Chancellor.