Millions of low-income households will receive a one-time cash payment of £650 from next month
The measures announced include a one-off payment of £650 to be paid to low-income households.
Who is entitled to the £650 payment?
More than eight million households are to receive the one-off cash payment.
If you receive income-related benefits, you are entitled to the one-off payment regardless of the amount of the benefit.
These types of benefits are means-tested, meaning people are entitled to receive them based on their financial situation. To qualify, you must show that your income, savings and capital are below a certain limit.
The payment of £650 applies to claimants of the following benefits:
- universal credit
- Labor Tax Credit
- child allowance
- pension credit
- Income-related unemployment benefit
- Income-related Employment and Support Allowance
- social care
The Department of Works and Pensions transfers the payment directly to the applicant’s bank accounts in two lump sums.
Payments from HMRC for those receiving only tax credits will follow shortly thereafter.
Who is not eligible for the £650 payment?
Your eligibility to receive the £650 payment depends on the type of benefits you receive, meaning many beneficiaries may be missing out.
If your benefits are not means-tested, you are not entitled to the money. This includes people claiming the following benefits:
- attendance fee
- need of care
- child support
- Disabled Housing Allowance (DLA)
- “New Style” Employment and Support Allowance.
- education allowance
- New style unemployment benefit.
- maternity allowance
- Personal Independence Payment (PIP)
- State Pension
- Statutory sick pay
- Legal adoption, maternity, paternity and joint parental allowance
What other support will there be?
Those who miss out on the £650 will still benefit from some of the other payments being introduced by the government.
Mr Sunak said universal support will be doubled from £200 to £400 and the requirement to pay it back will be removed. That means households will get a £400 rebate on their energy bills from October.
A living cost payment of £300 will be paid to more than eight million retired households in November and December alongside the winter fuel payment. The payout is made directly to households in the same way they receive the Winter Fuel Subsidy.
Six million people on disability benefits will also receive a one-off payment of £150 in September.
https://www.nationalworld.com/lifestyle/money/650-cost-of-living-payment-eligible-3713617 Cost of living allowance: Who receives a one-time subsidy of 650 euros?