Nearly one in four UK families will receive £326 in the first tranche from the government as of today cost of living crisis support package†
It is the first of two benefits paid to people on means-tested benefits. It will automatically go to more than eight million households between today and July 31 as part of the government’s £37 billion bailout package.
A second installment of £324 will be transferred directly to their bank accounts later this year.
The money is to help families struggle with spirals energy bills, which is expected to reach £2,980 when the energy price cap is raised in October, before rising to more than £3,300 in January, according to energy consultancy Cornwall Insight. This means that the energy bill of households more than doubled in 18 months†
Combined with other aid packages, low-income households will receive at least £1,200 from the government by Christmas. Nearly one in ten people will also receive a £150 disability allowance this autumn.
The Ministry of Work and Pensions will administer the benefits, so that households will not have to apply for the benefit.
More than eight million retired households could also receive an additional £300 in winter fuel in November and December.
Prime Minister Boris Johnson said: “Today’s payment is a signal to millions of families that we are on their side and we have already pledged more money in the autumn, among other measures – including our Household Help – to support the vulnerable and the burden.”
In addition to the £650 for the two living expenses, all household energy customers in the UK will receive a £400 subsidy to offset their energy bills. Those in council tax classes A to D will receive an additional £150.