The Department for Work and Pensions (DWP) has announced that 722,000 households in Yorkshire and the Humber will get the first part of a £650 cash payment from July, to ease cost of living pressures.
Ministers have confirmed that the initial payment of £326 will begin from 14 July and the DWP has now revealed how many people in each part of the country will receive the new financial support. They have also said that the second instalment of £324 will arrive in autumn and the £150 disability top-up will land in bank accounts in September.
Figures show that nearly one in four families will receive the means-tested benefit cost of living payment, whilst nearly one in ten of the population will get the £150 disability top-up. These instalments are part of the £1200 package the government has introduced this year to relieve some pressure from families who are worst affected by soaring energy costs.
Work and Pensions Secretary, Thérèse Coffey said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living. This one-off payment totalling £650 is part of our £37 billion cost of living support package that will put an extra £1,200 into the pockets of those most in need.”
The second instalment of £324 will be sent to qualifying low income households from the Autumn. The payments are designed to be deliberately slightly unequal to minimise fraud risks from those who may seek to exploit this system, according to the DWP.
The eligibility date for the second instalment is expected to be announced soon. If customers are eligible through receiving tax credits only, HMRC will contact them and issue payments automatically, with the first instalment being made from autumn.
DWP will administer payments for customers on all other eligible means-tested benefits, and customers do not need to contact them or apply for the payment. Support includes the direct cost of living payment of up to £650 for over 8 million households on eligible means-tested benefits, a separate £300 payment for pensioners, and a £150 payment for eligible disabled people, which can be paid on top of the £650 payment.
This is on top of £400 for all households to help with energy bills, and an extra £150 for properties in Council Tax bands A-D, meaning the lowest-income households will receive at least £1,200 in support this year. The DWP has said this support is in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants, a rise in the National Living Wage to £9.50 an hour, and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.