Millions to receive first portion of £650 cost-of-living payment

Beginning yesterday, a first instalment of £326 will start to be paid out to low-income households on benefits, the Department for Work and Pensions announced .

The second portion of the one-off £650 payment will follow in the autumn, as part of a support package worth £1,200 that vulnerable households will receive this year, which also includes a previously announced £150 council tax rebate in Great Britain.

Work and Pensions Secretary Therese Coffey said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living.”

Ms Coffey added: “This one-off payment totalling £650 is part of our £37 billion cost-of-living support package that will put an extra £1,200 into the pockets of those most in need.”

Legislation to confirm the £650, as well as the other elements of the government’s support package, is being laid before Parliament today.

Chancellor Rishi Sunak said: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help.

“In July, more than eight million people will get their first £326 payment to help with rising prices, as part of a package worth at least £1,200 for vulnerable families.”

Mr Sunak went on to say“I said we would stand by people when they needed help, and we are”.

Under the government’s plan, pensioners will also receive a £300 payment in November/December alongside the winter fuel payment in a move costing £2.5 billion, while £150 will be paid by September to individuals receiving disability benefits.

Every household in the country, regardless of how well off they are, will get a £400 discount on energy bills, raising concerns the move will further fuel inflation.

The chancellor announced the emergency cost-of-living support package last month, saying £5 billion of the package would be paid for by a levy on the profits of oil and gas giants, and around £10 billion will be covered by extra borrowing.

Although the scheme is mainly aimed at GB, details published on the UK government website state: “This support will apply directly for households in England, Scotland, and Wales. It is GB-wide and we will deliver equivalent support to people in Northern Ireland.”

It adds: “The government understands that many people are worried about the impact of rising prices, with many of the most vulnerable households struggling to make their incomes stretch to cover the basics.”