Warning to millions of people on Universal Credit as £650 cost of living payment WON’T hit bank accounts in one go

MILLIONS of people on Universal Credit won’t get the £650 cost of living payment all at once.

Chancellor Rishi Sunak announced the extra cash would be dished out as part of a £15billion emergency package for low income households.

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More than eight million households will receive the help, which will be paid in two instalments.

The first instalment is worth £326 and will land in bank accounts from 14 July – payments will be staggered from there.

But the Department for Work and Pensions (DWP) say applicants may not receive money at the same time.

The DWP say it’s because there are millions of payments that need to go out and they can’t all be processed on a single day.

The first half of the payment is expected by the end of July for the majority of people eligible.

Some exceptions are if you’re circumstances are complicated or are on tax credits.

In a written 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.”

He added: “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.”

Those who are claiming tax credits and are eligible for the cash boost may need to wait longer than expected.

The delay to payments is in place in order to avoid “duplicate payments” for those on more than one of the eligible benefits.

Those on tax credits will be paid their first payment from autumn, and their second payment from winter – exact dates are yet to be confirmed.

The second payment for those not on tax credits and who are on other eligible benefits will arrive in the autumn with an exact date to be confirmed.

Am I eligible for the cash?

There is a list of requirements in order for you to be eligible for the £650 cash boost, so you’ll need to read it carefully before you claim.

Firstly, you’ll need to be on Universal Credit.

But you could also be claiming one or more of the following:

• Pension credit
• Income support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance

In order to get the first payment due 14 July, you must have been claiming the above between April 26 and May 25 this year.

If you’re eligible, the second payment should be made by September.

For more information on how to claim Universal Credit, click here.

The following benefits are also eligible but will get the cash later.

• Working Tax Credits
• Child Tax Credits

People may be receiving tax credits alongside any other eligible benefits – so may already be getting a cost of living payment because they are in receipt of this benefit.

So the £650 payment to those on tax credits only will be dished out at a later date to avoid any double payments being made.

What if I don’t get the cash?

There are plenty of schemes and funding to help you even if you can’t get the £650 cash boost.

For example, some households on low incomes could be eligible for a discount on their council tax bill.

You could get your bill reduced to zero, and with the average bill for a band D home at £1,898, that could be a significant saving.

Find out what you could get in our guide.

There’s also an option to claim up to £150 if you can’t get council tax rebate, which you can read about here.

Also, if you’re struggling to pay your energy bills, there are a whole load of schemes available. You could grab £750 to help pay your bills, and you don’t need to pay it back either.

Some schemes include:

Contact your supplier directly to see what they offer, what the eligibility requirements are, and how much you can get.

If you don’t know who your supplier is, you can find out here.

In terms of council funds, the Household Support Fund helps families with the rising cost of living, has been extended.

This help could include cash grants to pay bills or cover food costs – the help will depend on where you live.

For example, residents in Blackpool can get as much as £300, depending on their circumstances.

To find out what support is available in your area, contact your local council.

If you’re still struggling for ways to get help, we’ve listed a few great ways to help you with bills as inflation soars.

And remember there are still great charities who will help tide you over for a while, including:

This post first appeared on thesun.co.uk