The government has pledged to assist households with the cost of living crisis. Those eligible are due to receive a payment of £650 paid in 2 lump sums of £326 and £324. The initial payment was due in accounts by 31st July, despite some delays, with the next instalment due this Autumn.
Second Cost of Living Grant Roll Out
You may be eligible for a payment if you receive Universal Credit, income-based, Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Income Support, Pension Credit, Child Tax. To be eligible for the first payment you must have been entitled to a payment of Universal Credit for an assessment period that ended in the period of April 26th to May 25th 2022. Or if you receive tax credits, either working tax credits or child tax credits you will receive the Cost of Living Payment providing you have received a payment of tax credits and an annual award of at least £26 of tax credits for any day in the period of April 26 2022 to May 25 2022. The payment is automatic and you do not need to apply.
Delay for Tax Credits Recipients
If you are due to receive a cost of living payment because you are entitled to either Working Tax Credits or Child Tax Credits, your payment will come from HMRC instead of the Department of Work and Pensions (DWP), so it will arrive later. The first patent is now expected in the Autumn for recipients of tax credits and the second instalment in Winter 2022. The aim is to ease the cost of winter heating, especially when the energy price cap is due to rise.
Grants, Rebates and Vouchers for Every Household
Chancellor Nadhim Zahawi says, “I know that people are finding things difficult with rising prices and increasing pressure on household budgets. That’s why we’re taking action to control inflation and providing immediate help for households. It’s so important that over 7 million vulnerable households have received £326 direct payments so far and there is also more help to come.” The government is planning a number of other schemes to help households during the economic crisis. Every household is due to receive a £400 discount that will be automatically applied to energy bills, beginning in October and spread over six months from the Energy Bills Support Fund. The £400 will be paid to your energy supplier, who will deduct it from your regular bills over a six-month period beginning in October. This is equivalent to £66 off each month. Direct debit and credit customers will have the award credited to their account and customers with prepayment metres will have the money applied to their metre, or paid via a voucher.
Additional Support Available
Further support available are a Disability Cost of Living Payment, if you get a qualifying disability benefit and a Pensioner Cost of Living Payment, if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023. These payments are not taxable and do not affect the benefits or tax credits you get. You can find out more about these schemes and eligibility here. Additionally the household support fund, originally scheduled between October 2021 to March 2022 has been extended until March 2023. This scheme is managed by your local authority and can provide emergency, financial support for households deemed eligible.
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