Universal Credit and other benefit claimants will receive a £650 cost of living payment ‘within weeks’

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Households on certain benefits will begin receiving financial support to help them through the cost of living crisis within weeks. The government’s £650 cost of living payment will be paid in two lump sums, starting in July.

More than eight million UK applicants for Universal Credit, Pension Credit and Legacy Benefits will receive two payments of £325 each. The government says the first installment will start being paid in July.

The total £650 will be tax-free, will not count against the benefit cap and will have no impact on any existing benefit allowances. It applies across the UK.

The exact payment date is not yet confirmed and will likely depend on when applicants receive Universal Credit during the month. The payments are part of a £15billion support package announced by Chancellor Rishi Sunak to help struggling households.

A government spokesperson said: “You will receive one payment from July 2022 and a second payment in the fall of 2022, if you qualify. You must have qualified for one of these qualifying benefits on the 25th May 2022 to get the first payment.

“We will update these guidelines when the government announces the date you must have qualified for one of these qualifying benefits to get the second payment.

“If you have a joint claim with a partner, you will receive a payment of £650 for the two of you, paid in two lump sums from July 2022 and in the autumn of 2022, if eligible. You will not receive a payment if you are eligible for a cost of living payment from HMRC because you are entitled to tax credits.”

Those in receipt of New Style Employment and Support Allowance or New Style Jobseeker’s Allowance will not be able to claim cost of living payments unless they are also recipients of the credit universal or a disability benefit. Recipients of an eligible disability benefit may obtain an additional disability cost of living payment.

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