An award was announced in May, as part of a series of measures that also included a “windfall tax” on energy giants and a doubling of the existing £ 200 energy rebate.
Sunak spoke earlier this week and confirmed that there would be a £ 15 billion injection of support to help people through difficult times, as energy costs would rise to £ 2,800 this year.
Sunak said: “We have a responsibility to protect those who pay the highest price for rising inflation, and we are acting to help. In July, more than 8 million people will receive their first £ 326 payment to help with rising prices, as part of a package worth at least £ 1,200 for vulnerable families. I said we will stand by people when they need help, and we are. ”
Over the last three months to April, base wages fell by 2.2 percent, after taking inflation into account.
In just a few weeks, 8 million households will see the first tranche of the £ 650 payment hit their bank accounts – but who is eligible, and when will the payments be issued?
Here’s everything you need to know.
Who is eligible for the £ 650 payments?
Britons have seen increases in their wage packs lagging behind rising inflation at a record pace as the cost of living crisis has tightened its grip on British households, according to official figures (Dominic Lipinski / PA)
/ PA ArchiveAccording to the government’s official guidelines, you may be eligible if you receive any of the following:
- income-based job search allowance
- income-related employment and support grants
- Income support
- Pension credit
- Universal credit
- Child tax credit
- Working tax credit
The government also recommends that you have one of these benefits, or have a successful claim, by Wednesday, May 25th.
Medium-tested payments are made based on your income, and how much capital you have – if someone can show that their income and capital are below a certain level, they qualify.
The government says: “You will not receive a payment if you have already received a cost of living payment from HMRC because you were entitled to tax credits.”
In an interview with the Chancellor, Martin Lewis highlighted that people who enjoy certain benefits will miss it. There is also concern that the very poorest do not realize that they are eligible for payments, making it more difficult to target them.
When will people get the first half of the payments?
Chancellor Announces New Future of Compute Review (Jonathan Brady / PA)
/ PA wireThe Government has announced that the payment in people’s bank accounts for families on income-tested benefits will be issued in two buds, one in July and one in the fall.
The first installment of the £ 650 will automatically end up in bank accounts from 14 July, continuing until the end of the month.
For those people who qualify for the one-time payment by tax credit or work tax credit, the two installations will rather be paid in the fall and winter.
For joint benefit claimants, the government recommends: “If you have a joint claim with a partner, you will receive one payment of £ 650 for both of you, paid in two lump sums from July 2022 and in the autumn of 2022, if be eligible. “
If you are eligible for the payment, you do not need to apply – the £ 650 will be automatically submitted to you.
It will be tax-free for all qualifying groups, will not affect the benefit limit and will not affect existing benefit allocations.
Mr Sunak said: “DWP will make the payment in two lump sums, the first from July, the second in the autumn, with payments from HMRC for those on tax credits following shortly thereafter.”