MILLIONS of people will get extra cash to help them get through the cost of living crisis.
Millions on Universal Credit and other benefits are among the most hard-up who will get a £650 one-off payment.
Everyone means-tested benefits will get the cash as part of a package of plans announced by the government today.
That means those on Universal Credit and legacy benefits like tax credits will get the help.
The lowest income pensioners will also get the help, on top of a separate £300 payment going out to all over state pension age also unveiled today.
Chancellor Rishi Sunak promised to tackle the cost of living crisis with help "targeting this significant support to millions of the most vulnerable people in our society".
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Announcing the help in parliament today, Mr Sunak said:
“We know that people are facing challenges with the cost of living and that is why today I’m stepping in with further support to help with rising energy bills."
Mr Sunak also revealed:
The Chancellor also announced:
- a Windfall tax on gas and oil firms to partially fund the support
- £300 one-off payment to low-income pensioners
- £150 extra one-off disability payment
- £400 energy discount for EVERY household
- An extra £500million for the Household Support Fund
- A one-off £650 payment to those on benefits including Universal Credit
The fresh measures come as millions of people have struggled to cope with rising bills.
Inflation has hit 9% and could rise further inthe months to come.
Energy bills could go up by another £800 in October when the price cap rises again, Ofgem has warned.
The energy price cap limiting how much suppliers can charge for standard tariffs shot up by 54% in April pushing up bills for millions of people.
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3Around 22million households are currently on price capped tariffs as fixed deals are now far higher following a steep increase in wholesale energy costs since last year.
The price cap increase pushed the typical duel fuel bill from £1,277 to £1,971, though exactly how much you pay depends on usage.
Last month benefit payments increased by just 3.1%, far behind inflation, squeezing millions of people's finances.
Who is eligible for the £650 payment?
Those on the following benefits will get the £650 help, the government has said, known as the Cost of Living Payment.
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
For those on benefits paid by the Department for Work and Pensions (DWP) the payment will be made in two lump sums.
The first will be made "from July" and a second will arrive in Autumn.
Specific dates for the payments have not been announced yet.
Payments for those on tax credits which come from HMRC will follow shortly after.
Anyone who was in receipt of the payments as of May 25, or who had started a claim and is later successful will be eligible for the first payment.
Eligibility for the second payment will be announced later on, with a second date applying for the later tranche of cash.
The payments will be tax-free and won't affect any benefits you're getting.
The £300 one-off payment for pensioners also announced today will be paid on top of the £650 to those who get pension credit.
And anyone with disabilities will get a £150 payment on top too, the government said today.
The latest help comes after earlier plans announced in February.
The government announced help for households including the £150 council tax energy rebate for four in five households.
There were also plans for a £200 discount applied to every energy bill in October, which would have to be repaid over five years.
That's now been replaced by a £400 payment that will not have to be repaid.
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The Houshold Support Fund was doubled to £1billion, and gives money to local councils to dish out to struggling residents in their area.
That's been upped again and a further £500million cash will be available over the winter period until March 2023.
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