MILLIONS of hard-up households are to receive a cash boost to help them with the soaring cost of living.
The cost of living payment will come in two instalments – one of which has already been sent out to many households.
The handout includes a payment of up to £650, for anyone claiming Universal Credit and other means-tested benefits.
Some 7.2 million households received the first of two cost of living instalments in July, but some are still waiting for payments.
The first payment is worth £326, with the rest to follow in a second instalment of £324 from the autumn.
If you missed the deadline to apply for the first payment, and you claim Universal Credit, then you could still be eligible for the second half of the payment which is due to be sent out later in the Autumn.
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Every household in the UK will be given at least £400 to help cover soaring energy bills, which are set to rise by hundreds of pounds more this winter.
Firms have said they will set out guidance for customers to make sure they know how to get the payment, following a meeting with MoneySavingExpert’s Martin Lewis.
Pensioners are also set to get a helping hand with an extra £300 one-off payment during the winter months.
The government has said that the average pay out for each household will be £550.
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But the amount you get will depend on what you're eligible for and could be more or less than that.
The most in need could up to £1,500 through the cost of living handouts.
The cash boost was announced by former chancellor and wannabe PMRishi Sunak in May, with the goal of helping millions who are struggling to make ends meet.
Here are all the key dates for when you can expect to get your payments.
September
There was a delay for those on tax credits because the government was worried about people receiving "duplicate payments".
Being on tax credits and on certain DWP benefits makes people eligible for the £650 cost of living payment.
But the government is paying tax credit claimants later to avoid paying anyone tice.
HMRC have said those on tax credits will get the first payment of the £650 in September.
If you are eligible, you don't need to do anything to receive these payments – HMRC will make them automatically.
The money will be paid in the same way you usually get your tax credits.
There is a code you should look out for on your bank statement, which will let you know the payment has been received.
There are over six million people with disabilities who will receive £150 in September.
This payment is to help them pay for any energy intensive equipment they might have – as higher energy bills will have pushed up the cost of using them.
It's worth remembering that many disability benefit recipients also get means tested benefits – so this £150 sum is different to the £650 payment.
Like the £650 cash boost, the £150 help will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
Autumn
Something hard-up households should look out for this autumn, is the second chunk of the £650 means-tested benefits cash pay out.
The date for the second chunk worth £324 has yet to be confirmed – but it is available for those on Universal Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), income support and Pension Credit.
Autumn is also when people on tax credits will get the first half of their £650 payments.
Working tax credits and child tax credit claimants are eligible for the cash, but will get the payment at a later date.
The reasoning behind this is that it will stop people getting paid twice if they are on other benefits on top of tax credits.
The first cost of living payment for those on tax credits, and not getting any DWP benefit, will go out from autumn 2022 and the second payment from winter 2022.
So far, the exact dates for both payments have not been confirmed.
From October
From October onwards, every household will start to benefit from a £400 energy bill discount.
The money will be dished out from this point, and payments will be given out in instalments over the next six months.
It replaces a previous plan to give a £200 energy rebate, which households would have had to pay back.
Crucially the £400 discount is a grant you WON'T have to pay back through higher energy bills in later years.
Customers paying their energy bill by direct debit should see the money credited to their account.
It doesn't matter if you have recently switched provider as all energy firms will be applying the reduction in bills.
Those on pre-payment meters will have the money added to their meter, or they will receive a voucher.
November/December
Either in November or December, a £300 one-off "Pensioner Cost of Living Payment" will be paid out to eight million pensioner households.
It will be given to those who already get the Winter Fuel Payment – which is worth between £100 and £300 for those over state pension age.
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The extra £300 boost will be paid on top of this support which means some eligible households will see their payments double this winter.
You can check out if you are eligible for the Winter Fuel payment in our explainer.
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