Millions to receive first instalment of cost-of-living payment from this week

The first instalment of the cost of living payment will be rolled out in the coming days. Credit: PA

The first half of a £650 payment which aims to help households struggling with the soaring cost-of-living will be paid into bank accounts this week.

Millions of claimants on Universal Credit and benefits will start to receive their first instalment of £326 from Thursday, July 14.

Those eligible should receive the money by the end of July, according to the Department for Work and Pensions (DWP).

The second lump sum of £324 will follow in the autumn - though no set date has been confirmed.

The payments are part of support package worth £1,200 that vulnerable households will receive this year, which also includes a previously announced £150 council tax rebate.

Millions to get first part of £650 cost-of-living payment from July 14

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Who is eligible for the £650 cost of living payment?

You may receive the two lump sums if you get any of the following:

  • Universal Credit

  • income-based Jobseeker’s Allowance (JSA)

  • income-related Employment and Support Allowance (ESA)

  • Income Support

  • Pension Credit

  • Child Tax Credit

  • Working Tax Credit

The DWP guidance states that you will not get a payment if you receive New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance, unless you get Universal Credit.

The cost-of-living payment is not taxable and will not affect the benefits or tax credits you receive.

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Do I need to apply for the payment?

No. The DWP says those eligible will be paid automatically in the same way you usually receive benefit or tax credits.

This includes if you’re found to be eligible for a Cost-of-Living Payment or a Disability Cost-of-Living Payment at a later date.

What do I do if I think I'm eligible but haven't received a payment?

The DWP says the department, along with HMRC, is using a computer program to identify those eligible to receive the payment.

If you need to challenge why you haven't receive it, the DWP advises contacting the office that pays your benefit or tax credits to discuss it.

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