Who will get the cost of living payment and do you need to apply?

15 June 2022, 12:03

House keys resting on a calculator
The cost of living crisis is impacting households across the UK. Picture: Alamy

By Zoe Adams

As the cost of living crisis continues to increase across the UK, Chancellor Rishi Sunak confirmed those who were struggling the most would receive additional support measures.

And as part of helping out, it was announced around eight million households with the lowest incomes would receive a cost of living grant.

Rishi said: "We need to make sure that for those whom the struggle is too hard and for whom the risks are too great they are supported."

With the constant increase of prices from petrol, to energy bills and even the cost of food, the one-off payment will bring some relief to those families struggling the most.

Related article: Why is petrol so expensive? And when will fuel costs go down?

Related article: Boris Johnson says he is 'bringing in tax cuts as fast as we can'

So who qualifies for the cost of living payment? And how do you apply? Here's what you need to know:

Screenshot of cost of living payment website
The Governement confirmed a grant for eight million houses with the lowest incomes. Picture: Alamy

Who will get the cost of living grant?

The £650 payment will be given to the households who received means-tested benefits - where you income and capital are below a certain amount. This includes the following:

  • Universal Credit
  • Income-based Jobseekers’ Allowance
  • Income Support
  • Working tax credit
  • Income-related employment and support allowance
  • Child tax credit
  • Pension credit

Do you need to apply for the cost of living grant?

If you are eligible for the payment, you will received it automatically with no need to apply.

The amount will be issued directly over two payments, one which is expected from July 14 of £326, and another in the autumn of £324.

If you qualify for the grant because you receive tax credit or working tax credit, then you can expect the two payments in autumn and winter instead.

The payment will not affect any existing benefit caps or awards and will be tax free.