Millions to Get £650 Boost in Cost of Living Crisis
More than eight million UK households on benefits are set to receive £326 by the end of July, with a second payment of £324 hitting accounts this autumn. The £650 total is part of a massive £37 billion government rescue plan to tackle soaring energy, food, and fuel bills.
£37 Billion Package to Ease Family Struggles
Consumer watchdog Which? says the money will “provide relief to many,” but warns the real test will be if help reaches the most vulnerable fast enough. Rocio Concha, Which? policy director, commented, “The success of these measures will ultimately be judged by whether financial help is getting to the most vulnerable in time to help them through this cost of living crisis.”
Energy bills keep soaring. Ofgem predicts an eye-watering £800 rise this October, pushing average annual energy bills to £2,800. That’s on top of the £700 hike already seen in April.
Who Qualifies? Automatic Payments and More Help on the Way
- The £650 payments will go automatically to anyone on benefits in England, Wales, Scotland, or Northern Ireland.
- Claimants must have been receiving benefits by May 25 to get the first instalment.
- The payments are tax-free and won’t affect benefit caps.
Chancellor Rishi Sunak said, “We have a responsibility to protect those who bear the brunt of rising inflation, and we are stepping up to assist.”
Extra Cash for Pensioners and Disabled
In addition to the £650 payment, pensioners will get a separate £300 boost. Disabled people will receive an extra £150.
This autumn, a universal £400 payment will go to all UK homes to help with energy bills, alongside a previously announced £150 council tax rebate. The second cost of living payment details will be revealed soon.
