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.”