£2.4bn worth of cost of living payments made to families on low incomes

Many are struggling to keep up with their energy bills. Credit: PA

More than 7.2 million payments of £326 have already been made to help households through cost of living support, according to the government.

A total of £2.4 billion has been paid to households on low incomes in England, Wales, Scotland and Northern Ireland, with a second instalment of £324 arriving later this year.

Payments were made from July 14.

Work and Pensions Secretary Therese Coffey said: “There is more help to come for households, with the second half of the £650 payment arriving later this year and further payments for pensioners and disabled people also on the way.”

The support package will also include a £400 grant to help with energy bills, a £150 disability payment and an extra £300 for pensioner households.

The Department of Work and Pensions (DWP) will administer payments for customers on all other eligible means-tested benefits, and no one needs to contact the government or apply for the payment.

Those who are eligible should look out for a payment of £326 with the reference DWP Cost of Living in their bank accounts. The payment is made automatically, meaning no one has to apply or do anything to receive it.

Eligible claimants who have not received their payment yet should not be concerned, the DWP said, as it expects some payments may take until July 31 to come through.


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There have been calls to increase support for people struggling with the cost of living due to prices rising more sharply than initially forecast.

Former Chancellor Rishi Sunak based the support package on estimates of energy bills in May but recent forecasts have suggested energy bills could rocket from £1,971 to £3,245 in October, and then further to £3,364 at the start of next year.This is several hundred pounds higher than earlier predictions and sets a worrying precedent for future estiamtes.

Living standards are now declining at their fastest rate in decades despite rising wages.

The gap between wages and inflation in the three months to May was 2.8% the fast in 20 years.

Chancellor Nadhim Zahawi said: “I know that people are finding things difficult with rising prices and increasing pressure on household budgets. That’s why we’re taking action to control inflation and providing immediate help for households.

“It’s so important that over seven million vulnerable households have received £326 direct payments so far and there is also more help to come, with eight million of the most vulnerable households receiving £1,200 of direct support to help with bills over the winter.”