1 in 4 families get 1st government Cost of Living Payment from today

Over 8 million households on means-tested benefits will automatically get the first instalment of £326 from this month.

This means that, combined with other support, millions of low-income households across the UK will receive at least £1,200 from the government by Christmas to ease cost-of-living pressures.

On top of that, nearly one in 10 people will get the £150 disability payment this autumn, and over 8 million pensioner households could get an extra £300 from Winter Fuel Payments in November and December.

Work and Pensions Secretary, Thérèse Coffey, said this first instalment of £326 should reach all eligible low-income households by the end of July.

Chancellor of the Exchequer, Nadhim Zahawi, said alongside tax cuts, changes to Universal Credit and the Household Support Fund, these payments are a vital part of our £37 billion support package to help people deal with rising prices.

Most people entitled to the first instalment of our Cost of Living Payment will receive it between now and 31 July 2022. Households that are eligible because they receive tax credits and no other eligible benefits will receive their first instalment from HMRC in the autumn, and the second instalment in the winter. DWP will administer payments for customers on all other eligible means-tested benefits, and customers do not need to contact the government or apply for the payment at any stage.

In addition to the £650 Cost of Living Payment, all domestic energy customers in the UK will receive a £400 grant to help with energy bills, and those in Council Tax bands A-D in England will get an extra £150, which has already been sent to many households. This brings support for millions to £1,200 by the end of the year.

The disability and pensioner payments come in addition to this, as does any support from the Household Support Fund, which was recently extended through to March 2023 with £421 million additional funding. It is now worth £1.263 billion, and combined with £237 million for devolved nations, meaning this support package now stands at £1.5 billion. The Household Support Fund is designed to help low-income households in England with food and energy bills, and is distributed by local authorities, who know their areas best.

Total government support this year for low-income families stands at £37 billion, a figure that includes a recent rise to £12,570 for the National Insurance starting thresholds. This will benefit 30 million working people and is worth £330 to a typical employee.