How the £650 for the vulnerable cost of living payment is going to be paid
The Department for Work and Pensions (DWP) will make the payment in two lump sums – the first from July, the second in the autumn. Payments from HM Revenue and Customs (HMRC) for those on tax credits only will 'follow shortly after each to avoid duplicate payments'.
The Government said claimants will need to be in receipt of one of these benefits; universal credit; income-based jobseekers allowance; income-related employment and support allowance; income support; working tax credit; child tax credit; and pension credit, or have begun a claim which is later successful, as of yesterday - May 25, 2022 - to be eligible for the first of the two instalments.
It added that HMRC and DWP will provide further guidance, and the Government would set out the eligibility date for the second instalment, in due course.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards. The Government will make these payments directly to households across the UK.