In May, a grant was announced as part of a series of measures that will also include a “windfall tax”, on energy giants and doubling the existing £200 energy discount.
Sunak confirmed there would be a £15bn injection of aid to help people through tough times as energy costs are set to climb 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 doing everything we can to help. In July, more than 8 million people will receive their first payment of £326 to help with rising prices, as part of a package worth at least £1,200 for vulnerable families. I said we would assist people if they needed help, and we are.”
In the past three months to April, base wage decreased by 2.2 percentafter taking inflation into account.
As of today (July 14), 8 million households will see the first installment of the £650 payment appear in their bank account – but who is eligible and when will the payments be made?
Here’s everything you need to know.
Who is eligible for the payment of €650?
According to official figures (Dominic Lipinski/PA), Britons have seen their wage packages increase at a record pace behind rising inflation as the cost of living crisis tightens its grip on UK households.
† PA archiveAccording to the Official Government GuidelinesYou may qualify if you receive any of the following:
- means-tested jobseeker’s benefit
- means-tested employment and support benefit
- Income support
- Pension credit
- Universal credit
- Child Tax Credit
- Working tax credit
The government also advises that you must receive one of these benefits or have had a successful claim by Wednesday, May 25 at the latest.
Means-tested payments are made based on your income and how much capital you have – if someone can show that their income and assets are below a certain level, they qualify.
The government says: “You will not receive benefits if you have already received a living allowance from HMRC because you were entitled to tax credits.”
In an interview with the Chancellor, Martin Lewis emphasized that those with certain benefits would miss out. There is also concern that the very poorest do not realize they are eligible for payments, making them more difficult to target.
When do people get the first half of the payments and when is the second installment due?
Chancellor Announced New Future of Compute Review (Jonathan Brady/PA)
† PA wireThe government has announced that the payment will be made in two instalments into the bank accounts of means-tested families, one in July and one in the fall.
The first tranche of the £650 will be automatically deposited into bank accounts from 14th Julycontinuously until the end of the month.
For those who qualify for the one-off payment through tax credit or employed person’s tax credit, the two installments in the fall and winter are paid instead.
For joint benefit claimants, the government advises: “If you have a joint claim with a partner, you will get one benefit of £650 for both of you, paid out in two instalments from July 2022 and in the autumn of 2022if eligible.”
If you’re eligible for the payment, there’s no need to sign up – the £650 will be sent to you automatically.
It is tax-free for all eligible groups, does not affect the benefit limit, and does not affect existing benefits.
Mr Sunak said: “DWP will make payment in two lump sums, the first from July, the second in the fall, with payments from HMRC to those with tax credits following shortly thereafter.”