The government has announced that its £650 cost of living payments will start flowing to millions of people from July 14. In about a month, eight million households across the country will receive financial assistance under a program aimed at tackling soaring energy prices. .
From that date, an initial payment of £326 will begin to be paid to low-income households on benefits, the Department for Work and Pensions has announced. The second part of the £650 one-off payment will follow in the autumn, as part of support worth £1,200 vulnerable households will receive this year, which also includes a council tax refund of £150 previously advertised.
Work and Pensions Secretary Therese Coffey said: “As millions of lowest income households soon see the first of two cash payments land in their bank accounts, we are taking action to help families directly. to meet the cost of living. This one-off payment totaling £650 is part of our £37billion cost of living support package which will put an additional £1,200 in the pockets of those who need it most,” reports PA.
Legislation confirming the £650, along with the other elements of the government support package, is tabled on Wednesday June 15.
Chancellor Rishi Sunak said: “We have a responsibility to protect those who pay the highest price from rising inflation, and we are stepping in to help. In July, more than eight million people will receive their first payment of £326 to help with rising prices, in a package worth at least £1,200 for vulnerable families. I said we would be with people when they need help, and we are.
Under the Government’s plan, pensioners will also receive a £300 payment in November/December alongside payment for winter fuel in a move costing £2.5billion while £150 will be paid by September to people receiving disability benefits. Every household in the country, regardless of living standard, will get a £400 cut on energy bills, raising fears the move could fuel further inflation.
The Chancellor announced the Emergency Cost of Living Support Scheme last month, saying £5billion of the scheme would be paid for by a levy on oil and gas giants’ profits, and around £10billion of sterling would be covered by additional borrowing.