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 - but many families are wondering when they will receive the £650 payment

This will be made in two instalments - with the first payment of £326 being made from 14 July 2022. A second cost of living payment of £324 will be made between 8 and 23 November 2022.

Work and Pensions Secretary, Chloe Smith said: “Millions of families will soon see a £324 cash boost as part of our extensive £1,200 support package, helping to raise incomes and manage the rising 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. 

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 first instalment, 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.

Sarah Handley
Consumer Writer & Money Editor, GoodtoKnow

Sarah is GoodtoKnow’s Consumer Writer & Money Editor and is passionate about helping mums save money wherever they can - whether that's spending wisely on toys and kidswear or keeping on top of the latest news around childcare costs, child benefit, the motherhood penalty. A writer, journalist and editor with more than 15 years' experience, Sarah is all about the latest toy trends and is always on the look out for toys for her nephew or Goddaughters so that she remains one of their favourite grown ups. When not writing about money or best buys, Sarah can be found hanging out with her rockstar dog Pepsi, getting opinionated about a movie or learning British Sign Language.