More than eight million families to get new cost of living payment in July

More than eight million households are set to get a new cost of living payment from July, the Department for Work and Pensions (DWP) has revealed.

They will be the first of two cost of living instalments totalling £650 from July 14. It is part of the £1,200 support package this year.

The initial instalment of £326 will be granted automatically to means-tested benefit claimants, such as those claiming universal credit. The rest will follow in a second instalment in autumn.

Tax credit claimants will also receive their first instalment of the cost of living payment from HMRC later this year. It comes as part of a £37 billion government package to help families with cost of living pressures.

Work and Pensions Secretary Thérèse Coffey said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living.

“This one-off payment totalling £650 is part of our £37 billion cost of living support package that will put an extra £1,200 into the pockets of those most in need.”

It comes as new Office for National Statistics figures show that inflation, the rate at which prices are rising, increased by 9.1 per cent in the year up to May. It is up from nine per cent in April. 

Charities continue to call for the government to do more to tackle the cost of living crisis. Sumi Rabindrakumar, head of policy at the Trussell Trust, said: “Food banks across our network are telling us about accelerating levels of need in recent months as more people are being pushed deeper into poverty and struggling to make ends meet.

“We know that most people at food banks in our network can’t work or work longer hours due to caring responsibilities, mental health problems or disability. That’s why we’re urgently calling on the UK government to introduce a long-term commitment in the social security system to ensure everyone can afford the essentials we all need to survive, like food.”