Who is eligible for 650 payment?

The £650 cost of living grant is being paid in two instalments to all households on means-tested benefits, including those receiving the following: Universal credit. Income-based jobseeker's allowance. Income-related employment and support allowance.

inews.co.uk - Who gets the cost of living payment? Eligibility for £650 grant explained ...

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The energy price cap will soar to £3,549 a year in October – an increase of 80 per cent. Energy bills have skyrocketed in 2022. In April the price cap jumped by almost 60 per cent, from £1,227 to £1,971. The latest increase, announced by Ofgem on Friday, means annual energy bills will almost triple in the space of just six months. Around 24 million households, including 4.5 million homes using prepayment meters, will be affected by the hikes. The extent of the rise may force millions of families to make a choice between heating and eating. The Government has introduced a series of energy bills support schemes to help households struggling with the cost of living. One of these is a £650 cost of living payment, the first instalment of which most eligible people have already received. However, people on child tax credit and working tax credit are only just starting to receive it. Here’s why, and when it should be paid by.

When will people on tax credit get the £650 payment?

The £650 cost of living grant is being paid in two instalments to all households on means-tested benefits, including those receiving the following:

Universal credit

Income-based jobseeker’s allowance

Income-related employment and support allowance

Income support

Working tax credit

Child tax credit

Pension credit

The first instalment of £326 appeared in people’s bank accounts in the second half of July, with the second to arrive in the autumn. The exception is people who are eligible solely through receiving child tax credit and working tax credit – who should receive the first payment between Friday 2 and Wednesday 7 September. They will then receive the second payment in the winter. The Department for Work and Pensions (DWP) said the delay was to avoid duplicate payments. The second payment will be of £324. The reason for the two payments being slightly unequal is “to minimise fraud risks from those who may seek to exploit this system”, the Government said. The grant is tax-free for all eligible groups, will not affect the benefit cap and/or affect existing benefit awards. There is no need to apply for the grant. Eligible people should have the payments appear in their bank accounts automatically, with the code “DWP C O L” or similar.

What other support is being offered?

£400 energy grant

The £400 energy payment is being made to every household in the country, without means testing. Originally, the plan was for households to receive a £200 discount on their energy bills in October, which would then be paid back over five years from 2023, with customers paying an additional £40 on their bills each year. However, in late May – and after much criticism – then-chancellor Rishi Sunak announced the discount would be increased to £400 and would no longer have to be paid back.

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The £400 discount will start in October and be paid to consumers in instalments over six months, with the grants administered through energy suppliers. The discount will break down into instalments of £66 in October and November, rising to £67 per month from December until March 2023. It will be provided on a monthly basis, regardless of whether people pay bills monthly or quarterly or have an associated payment card. Those with a domestic electricity meter point who make payments through payment cards, standard credit, and direct debit will receive an automatic deduction on bills. People who use pre-payment meters and top up their credit before using energy will be provided with discount vouchers in the first week of each month. These will be sent by text message, email or post with the most up-to-date contact details customers have left with suppliers. The discount also applies to students and other tenants renting properties with domestic electricity contracts from landlords where fixed energy costs are included in their rental charges. In these circumstances, landlords who resell energy to their tenants should pass the discounted payments on appropriately, in line with Ofgem rules to protect tenants. In all cases, no household should be asked for bank details at any point. Ministers are urging consumers to stay alert of potential scams and report these to the relevant authorities where they are suspected.

£300 winter fuel payment

Most pensioners will already be familiar with the winter fuel payment, an annual tax-free lump sum issued by the DWP. This year, the Government is adding an extra £300 to boost the support for more than eight million pensioner households. The winter fuel payment will be made available for households that include someone born on or before 25 September 1956. You must also live in the UK for at least one day during the week of Monday 19 to Sunday 25 September 2022. If you do not live in the UK during the qualifying week, you might still get the payment if both the following apply:

You live in Switzerland or a European Economic Area (EEA) country;

You have a genuine and sufficient link to the UK – this can include having lived or worked in the UK, and having family in the UK. You cannot get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain because the average winter temperature is higher than the warmest region of the UK. You don’t typically have to apply for the winter fuel payment if you are eligible. You should receive the money automatically.

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However, if you have not had the payment before, you will need to claim if any of the following apply:

You do not get benefits or a state pension;

You only get housing benefit, council tax reduction, child benefit or universal credit; You get benefits or a state pension but live in Switzerland or an EEA country. You can find the claimant form on the DWP website here. Claims will be accepted until 31 March 2023. The Government has said the £300 payment should be with pensioners by autumn 2022. You will get a letter telling you how much you’ll get, and an estimated payment date. You should be paid by Friday 13 January 2023 at the very latest.

£150 disability payment

People on disability benefits may be eligible for a £150 cost of living payment if they receive any of the following:

Attendance allowance

Constant attendance allowance

Disability living allowance for adults

Disability living allowance for children

Personal independence payment (PIP)

Child disability payment (in Scotland)

Armed Forces independence payment

War pension mobility supplement

You must have received a payment of one of these qualifying benefits for 25 May 2022. If you get a qualifying disability benefit from the Ministry of Defence (MoD) and a qualifying disability benefit from the DWP, you will only receive a payment from DWP. Around six million people are eligible for the payment, the DWP has said. The grant will begin being paid automatically from Tuesday 20 September. You do not need to apply. The DWP said the vast majority of those eligible are “expected to receive their one-off payment within a couple of weeks by the beginning of October”. Payments will be made to people who get a qualifying disability from the DWP before those who get it from the MoD. The £150 disability payment is tax free, and won’t count towards the benefits cap or affect any existing benefits you currently claim.

inews.co.uk - Who gets the cost of living payment? Eligibility for £650 grant explained ...

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