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Over eight million UK households to receive second Cost of Living Payment



The government has today announced that households receiving DWP benefits will receive the second part of the £650 Cost of Living Payment.


Over 8 million families in the UK have already received the first Cost of Living Payment, worth £326, which was sent out from 14 July this year.


The second payment will automatically be paid into the bank accounts of those eligible in England, Scotland, Wales and Northern Ireland who receive a qualifying benefit, meaning they will not need to do anything to receive the money.



Work and Pensions Secretary, Chloe Smith said:


"Millions of families will soon see a £324 cash boost as part of our extensive £1,200 support package, helping to raise incomes and manage the rising cost of living.


"We understand that people are struggling which is why and we’re committed to supporting the most vulnerable households.


"That’s also why we are focused on driving growth and delivering quality public services so we can continue to support those in need through these challenging times while boosting opportunity for all."



Chancellor of the Exchequer, Kwasi Kwarteng added:


"We know that people have been worried about their bills ahead of this winter, which is why we’ve taken decisive action to hold down energy bills, saving the average household around £1,000 a year, and provided £1,200 of targeted support to the most vulnerable.


"Without our intervention, analysts were predicting that the average annual energy bill could have reached £6,500 next year. We were never going to let this happen.


"Our Growth Plan will also leave more money in people’s pockets and, over the longer term, help drive economic growth – the only way to permanently boost everyone’s living standards."



The DWP will pay a small number of payments on the 8 November, with numbers increasing significantly from the 9 November. Even if you are not on a qualifying DWP benefit you may still be eligible for the £324 payment as HMRC are also making payments to those who receive tax credits and no other eligible benefits. These will be paid shortly after DWP payments and customers do not need to contact the government or apply for the payment at any stage.


In summary. the second part of the £650 Cost of Living Payment will be issued from 8 November and continuing through to the 23 November.


This payment comes on top of extensive government support with the cost of living this winter, including around 6 million disabled people having been paid a separate £150 Disability Cost of Living Payment, whilst over 8 million pensioner households will receive an extra one-off £300 Winter Fuel Payment this year.



A £400 reduction on energy bills is also being given to all domestic electricity customers over the coming months, and a new ‘Energy Price Guarantee’, which means from 1 October the average UK household will save at least £1,000 a year based on current energy prices.


More than 8 million families on means-tested benefits will receive up to £650 this year, made in 2 payments. This includes all families entitled to a payment of the following benefits: Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension Credit.


To be eligible for the second payment, families must have been entitled to a payment (or later found to be entitled to a payment) of either:

Universal Credit for an assessment period that ended in the period 26 August to 25 September, income-based JSA, income-related ESA, Income Support or Pension Credit for any day in the period 26 August 2022 to 25 September 2022.


Tax credit-only customers, who will receive the second payment shortly after DWP payments, must have received a payment, or an annual award of at least £26, of tax credits for any day in the period 26 August 2022 to 25 September 2022, or later found to be entitled to tax credits for this period.


This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.


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