Millions of low-income families will be receiving the first instalment of the one-off £650 grant from the government over the next couple of weeks.
The cash, which is part of former chancellor Rishi Sunak’s plan to address the cost of living crisis, is being allocated to recipients of those on means-tested state benefits including:
- Child tax credit
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Income support
- Pension credit
- Universal credit
According to reports by the Department for Work and Pensions, the first £326 payment will be paid into accounts before Sunday 31 July. The second part of the payment will be distributed in autumn, to help with heating bills as the weather gets colder.
If you are not eligible for the above cost of living payment, the government has put in place schemes to help UK families as budgets continue to be squeezed by increases in fuel, energy, food bills and record inflation.
Those on any kind of disability benefit will receive £150 in September to help with their living expenses. And every home across England, Scotland and Wales will receive a £400 discount that will be automatically applied to their energy bills, beginning in October and spread out over six months.
Pensioners who rely on the winter fuel payment to heat their homes will also be given an extra £300 to help with the spiralling costs of living.
The household support fund, originally only intended to run from October 2021 to March 2022, has also been extended until March 2023, with the government granting local authorities an extra £1.5bn to hand out over 18 months to residents they deem to be most in need of financial help.
To apply for the household support fund, visit your local council’s website, and search ‘household support fund’ to understand if you are eligible and how much you could be entitled to.
Precisely how much families could receive may vary between households, depending on their circumstances, as the calculation is left up to councils’ discretion, although £200 is looking likely to be the average grant pay-out.