More than eight million UK households on benefits are set to get a cash boost this summer. A £326 payment will land in bank accounts by the end of July, followed by another £324 in the autumn. That’s a hefty £650 in total from the government’s massive £37 billion package aimed at tackling soaring energy, food, and fuel bills.
£650 Lifeline to Help Families Battle Rising Bills
The relief comes as many families face crushing costs. Consumer group Which? says the cash will “provide relief to many.” Policy director Rocio Concha added, “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 have surged dramatically. In May, regulator Ofgem warned of an average yearly bill rise of £800 in October, pushing total costs to around £2,800. April’s hike alone added £700, straining household budgets.
Who Qualifies? All Benefits Claimants Get Cash Automatically
The two payments totalling £650 will go automatically to anyone on benefits across England, Wales, Scotland, and Northern Ireland. To get the first payout, claimants must have started a successful benefits claim by May 25.
The money is tax-free and won’t affect anyone’s benefit cap — a relief for many struggling families. 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.”
More Help on the Way This Autumn
The government promised further help this autumn. Every UK household will receive £400 to ease energy bills — no matter their income. This is on top of a £150 council tax rebate already announced.
Plus, pensioners will get an extra £300, and disabled people will receive a £150 boost, separate from the £650 cost-of-living payments.
