Millions of families to receive first cost of living payment from 14 July

Low-income households can expect to receive a cash payment to help with the cost of living from the middle of next month

Family at table assessing bills
(Image credit: Getty images)

The government has announced when more than eight million low-income households will receive the first of two cost of living payments. This confirmation comes after Chancellor Rishi Sunak announced a £15 billion cost of living support package to help ease the pressure of the rising cost of living.

As part of the support package, low-income households in the UK are eligible for a £650 payment. This will be made in two instalments - with the first payment of £326 being made from 14 July 2022. A second instalment of £324 will be made in the autumn. The date for the second payment is yet to be confirmed. 

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.”

Low-income families are some of the most vulnerable to rising costs. With energy bills still soaring and food prices continuing to rise, for many families, this first support payment can not come soon enough. 

What other support could I be eligible for?

All households will receive a £400 payment from October to help with rising energy bills. Households in council tax bands A-D will also benefit from a £150 council tax rebate. Some have already received the £150 rebate. If you haven’t received yours yet, check your local council’s website for more information on when you might receive it. 

There is also a separate payment of £300 for pensioners and a £150 payment for people with disabilities.

Do I need to apply for the £650 payment?

If you are eligible for the payment, it will be made automatically, so there is no need to claim. It will be paid directly into your bank account. 

To qualify for the £650 payment, you need to be claiming (or have begun a claim which is later successful) the following means-tested benefits or tax credits on or before 25 May 2022. 

  • Universal credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income support
  • Working Tax Credit
  • Child Tax Credit 
  • Pension Credit

If you think you may be entitled to the benefits and haven’t yet applied, it’s worth checking your eligibility and applying. While you won’t get this first payment, it may mean you qualify for any future support payments.

Use this tool to see what benefits you could be entitled to (opens in new tab).

Sarah is an experienced journalist and editor with more than 10 years of experience in the Homes industry, working across brands such as Homebuilding & Renovating, Period Living and Real Homes. After segueing into the world of personal finance, acting as launch editor of, Sarah is now an Editor in Future’s Wealth division with a focus on property-related finance and household bills. She is passionate about helping people cut through confusing jargon to make the right financial decisions when getting on the property ladder and turning a house into a home.