MILLIONS of people on Universal Credit and other benefits will see a change to payments next month.
Extra cash will land in many people's bank accounts in July to help them through the cost of living crisis.
It means they will get a second payment on top of their usual Universal Credit or benefit payment, if they are eligible for the cash.
Hard-up households are being given up to £650 by the government to help with the rising price of essential bills like energy, food and fuel.
Those on Universal Credit and legacy benefits like tax credits will get the help.
The government has now confirmed that half the cash, worth £326, will be paid from July 14.
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And the DWP has said that it will be given out as a one-off payment between then and the end of July.
You'll get the cash paid in the same way as your usual benefit payment, for example into the same bank account where you get Universal Credit.
That means you'll get two payments in July – your usual benefit payment, and a cost of living payment from the DWP.
It's similar to the Christmas Bonus, which is an extra £10 payment made to millions on benefits and usually paid in the first week of December.
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On top of a usual benefit deposit for the festive month, the government gives out the cash which can be seen on bank statements as DWP XB.
Here's what you need to know about the extra cost of living payment in July, including how much you'll get and when.
Am I eligible for the cost of living payment in July?
Those on the following benefits will get the £650 help, the government has said.
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
- Universal Credit
The first part of the payment is worth £326 and will be paid from July 14.
To get the first payment, you will need to be in receipt of any of these eligible benefit payments as of May 25 this year, or have started a claim by this date and later be successful.
The second payment, worth £324, will be made in Autumn with the exact date to be confirmed.
There will also be later cut-off date that you'll have to be claiming the benefit by to qualify for this second amount.
It means you could be eligible for the second payment, even if you didn't get the first, if you start claiming Universal Credit or other benefits.
It could be worth checking now if you could claim benefits as it's estimated that millions of people are missing out.
How will my benefit payments change in July?
If you're eligible for the cost of living payment, as described above, then you might see a change to payments in July.
Those who get the following benefits which are paid by the DWP will see an extra payment of £326.
That's on top of their usual Universal Credit or benefit amount.
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Universal Credit
If you get payments from HMRC and none of the ones above, cost of living payments will be paid on a different schedule. This includes the following benefits:
- Working Tax Credit
- Child Tax Credit
The cash will be paid later to avoid people getting paid twice if they get other benefits on top of tax credits.
The first cost of living pamyent for those on tax credits, and not getting any DWP benefit, will go out from autumn 2022 and the second payment from winter 2022.
The exact dates have not been confirmed yet.
Will the amount of Universal Credit or benefit I'm paid change?
The amount of Universal Credit or other benefit payment amount you usually get won't change.
The only exception is if you've had a change of circumstances at the same time which affects how much you get.
If you're eligible for the cost of living payment then you can expect an extra separate deposit of cash worth £326.
The cost of living payments will be tax-free and won't affect any benefits you're getting, or count towards the benefit cap.
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The £650 cost of living payment is part f a package of support that could be worth as much as £1,500.
Here's what else you could get and the key dates payments will arrive, including £400 for energy bills.
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