Cost of living: When will I get the cost of living payment, who is eligible for £650 payment and will the payment be delayed?

Millions of homes across the UK will see the cost of living payment arrive in their bank account this month as part of the government’s emergency package to help with soaring energy prices.

Former Chancellor Rishi Sunak unveiled a £15bn support package last month, including a one-off £650 payment that will be made to low-income households.

But when will the payment be made and who is eligible?

Here’s everything you need to know:

Who is eligible for the cost of living payment?

Eight million low-income households who receive benefits based on income will be eligible for the one-off payment, regardless of how much support they receive.

These benefits are means-tested and to qualify, claimants need to demonstrate that their income, savings and capital are below a certain level.

The £650 payment will apply to the claimants of the following benefits:

-Universal Credit

-Working Tax Credit

-Child Tax Credit

-Pension Credit

-Income-based Jobseekers Allowance

-Income-related Employment and Support Allowance

-Income Support.

The payment will be made in two lump sums directly into the claimant’s bank account.

Payments from HMRC for those on tax credits only will follow shortly afterwards.

When will the one-off payment of £650 be made?

Around eight million households should see the first instalment of the £650 payment arrive in their bank account on 14 July, according to the Department for Work and Pensions (DWP).

From that date, £326 will start to be paid out to low-income households on benefits.

Will there be a delay?

The DWP has warned that there may be a payment delay due to the volume of people in line to receive it.

The department warned that there ‘may be potential delays for a small minority of cases due to their unique characteristics’.

In response to a recent query from Independent MP Neil Coyle asking whether all Universal Credit claimants will receive the payment at the same time as those on other benefits, the DWP said payments will be staggered due to the high number of people entitled to the support.

In a statement, DWP Minister David Rutley MP said: ‘Due to the volume of people entitled to the payment, it is not possible to issue all of the Cost of Living Support Payments at the same time.

‘Issuing payments will be staggered, but not by benefit type, starting on July 14, 2022.

‘We currently expect the majority of payments to be made by the end of July, there may be potential delays for a small minority of cases due to their unique characteristics.’

This means that the vast majority of eligible people should receive the first part of the £650 cost of living payment between July 14 and July 31.

When will the second instalment be paid?

The second instalment of £324 will be paid in the autumn, although an exact date for the final instalment is yet to be announced.

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What if I am not eligible for the £650 cost of living payment?

Those who will miss out on the £650 will still benefit from some other payments which are being rolled out by the government.

Pensioners will receive £300 in November/December alongside the winter fuel payment in a move costing £2.5bn, while £150 will be paid by September to people receiving disability benefits.

Every household in the country, regardless of their financial situation, will also get a £400 discount on energy bills in October, which will be partly funded by a £5bn windfall tax on oil and gas giants.