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Support starts in July
From inflated food prices to increased energy bills, the cost of living in the UK has dramatically increased recently. In response, Chancellor Rishi Sunak has announced a cost of living payment as a support measure to help the most vulnerable during the crisis.
“We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That is why I’m targeting this significant support to millions of the most vulnerable people in our society. I said we would stand by people and that is what this support does.”
What is the cost of living payment?
It’s a grant being paid to people who receive means-tested benefits.
What is a means-tested benefit?
- Universal credit
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Income support
- Working tax credit
- Child tax credit
- Pension credit
Who will receive the cost of living payment?
Households receiving means-tested benefits will get an additional cost of living payment of £650 in two instalments.
Do you need to apply?
No. If you are eligible for the grant (you need to be in receipt of one of these benefits), you will not need to apply and it should be paid to you automatically. If you have a joint claim with a partner, you will get one payment of £650 for both of you.
When will people receive the money?
The government announced that the payment will be issued directly to households in two sums, with one paid from July and another in the autumn. It will be tax-free, will not affect the benefit cap and will not affect existing benefit awards.
Are other support measures in place?
Yes, pensioners who receive the Winter Fuel Payment will receive £300 in November, and those who claim disability benefits will receive £150 before the end of September. In addition, millions of households will get a £400 energy rebate and it won’t have to be repaid.