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8 million households will receive the £650 cost of living payment soon

On May 26, the Chancellor Rishi Sunak unveiled a package of measures to fight the cost of living crisis. One of the most important ones was the £650 one-off payment, meant to support the UK's most vulnerable households.

Continue to read to learn how these measures will affect you!


With an inflation of 9% and with energy bills rising to £2,800 in October (according to Ofgem), it's estimated that the household energy bills in Britain will increase about 40% in the next few months.

Because of this, the government set out a £15 billion package of support in the House of Commons to help UK’s lowest income households to deal with the cost of living.

Eight million people are set to receive a one-off payment of £650. Everyone on Universal Credit, Tax Credits, Pension Credit and legacy benefits will receive this payment automatically.

This means that these households will receive at least £1,200 of support, including a £150 council tax rebate which has already been announced. The one-off £650 payment will be issued directly in two lump sums, with one paid from July and another in Autumn.


Who can get the £650 payment?

According to the government, the payment will be given to those who receive the following:

  • Universal credit;
  • Income-based jobseekers allowance;
  • Income-related employment and support allowance;
  • Income support;
  • Working tax credit;
  • Child tax credit;
  • Pension credit.

Be aware that you won't get a payment if you have already received a Cost of Living Payment from HMRC, because you were entitled to tax credits.


Other Measures Announced

With the UK Insecure Work Index showing that one in five (6.2 million) workers in the UK live in severe insecurity, - uncertain of how many hours they can work or how much money they will earn, - the Chancellor Rishi Sunak also announced other measures to help the most needy UK households. 

The package, which will offer people up to £1,500 free cash to cover the cost of essentials, will include:

  • Windfall tax on gas and oil firms;
  • £650 one-off payment for Universal Credit and benefits;
  • £300 one-off payment to low-income pensioners;
  • £150 extra one-off disability payment;
  • £400 energy discount for EVERY household;
  • £500 million added to the Household Support Fund.



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Published by Elisa Ribeiro Soares
Elisa Ribeiro Soares