A million households in England, Wales, Scotland and Northern Ireland will receive the first of two cost of living instalments of £650. Governments are providing a minimum of £1,200 to millions of households this year to help them cover rising costs. A price of £326 will follow as a part of a second instalment in the autumn. Therese Coffey said, ‘the first instalment will be in the lowest-income households’ bank accounts to help them with the cost of living.’

The payment of £650 is part of the £37 billion costs of living support package that is providing the most in need with a total of £1,200. Rishi Sunak added to that, ‘we are stepping up to help those who are paying the highest price for rising inflation.’

The payments are to minimise fraud risks for those who may see this as an opportunity to exploit the system. The date for the second instalment will be announced soon. Over 8 million households will be receiving the direct payment of £650 and a separate £300 for pensioners and £150 for disabled people. These payments will be on top of the £650 they will be receiving.

The governments are providing low-income households various benefits in many different ways this year due to the high rise in prices mainly caused by the bitter unjust war in Ukraine. The war has caused prices of essentials to rise drastically. Many people are worried about the rising prices and the impact it is having on their household finances which is the main reason the government has stepped up by providing £37 billion of support to boost budgets and mitigate the worst of these pressures.

An extra of £150 for properties in Council Tax bands A-D. A tax cut for around 30 million workers through a rise in National Insurance contribution thresholds. The government has expanded support for the Household Support Fund, which is for helping people with food and energy bills. Fuel duty was decreased by 5p per litre for 12 months in March 2022, and alcohol duty was frozen for 2022/23. A discount of £400 on energy bills has been given to every UK household concerning the rise in inflation.

The £650 handout is going to households receiving universal credit, pension credit or one of the legacy benefits. It will be given out in two instalments – £326 in July and £324 in autumn. Both the payments are different due to technical reasons to help with the DWP monitor. It is to check if the payment has been sent and reduce the possibility of fraud from people who will be making wrongful claims in multiple ways, like pretending not to receive the payment.

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.” The government has ensured that the cash is tax-free and does not add to someone’s benefit cap.