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Daily Mirror
Daily Mirror
Business
Levi Winchester

Three reasons you might not get one-off £650 cost of living payment in July - full list

More than eight million households who claim certain benefits will receive a one-off payment of £650 from July to help with rising bills.

The new support was confirmed by Chancellor Rishi Sunak as part of a £15billion cost of living package, to help families who are struggling.

But not everyone who claims benefits will be eligible for the £650 payment - it is only certain payments that will qualify you for the cash.

Some households may also have to wait longer than others to receive the cost of living cash.

We explain three reasons why you might not get the payment.

Do you think the £650 payment is enough to help struggling households? Let us know: mirror.money.saving@mirror.co.uk

You don’t claim a means-tested benefit

The £650 payment is only being awarded to those who claim means-tested benefits.

These are benefits where your income and savings are taken into account and includes:

  • Child Tax Credit

  • Income-based Jobseeker’s Allowance

  • Income-related Employment and Support Allowance

  • Income Support

  • Pension Credit

  • Universal Credit

  • Working Tax Credit

People who receive other types of benefits will miss out on the £650.

This includes households that claim Personal Independence Allowance, Carers Allowance, and contributory-based Employment and Support Allowance.

You might be entitled to a smaller payment of £150 or £300 if you claim certain disability benefits or are over state pension age.

You weren’t claiming benefits on May 25

The £650 is being split up into two sums, with the first worth £325 due to be issued to eligible households from July.

You will need to have been entitled to one of the qualifying benefits on May 25, 2022, to get the first payment.

The second £325 payment is expected to arrive in autumn, although there is no set date.

The deadline for applying for the second payment has also not yet been set.

This means thousands of Brits who qualify for one of those benefits could start a claim and be eligible for the second payment.

You claim tax credits

If you claim Child Tax Credit or Working Tax Credit, you will be eligible for the £650 payment - but you won’t get it in July.

The first £325 payment for tax credits households, which are issued by HMRC rather than the Department for Work and Pensions, won’t be issued until the autumn.

The second £325 payment will then be sent in winter but again, there is no set date yet.

What other help has been announced?

There are two other one-off payments being made to vulnerable households.

This includes £150 for those who claim certain disability benefits and £300 for pensioners in receipt of Winter Fuel Payments.

Every home in England, Scotland and Wales will also receive £400 off their energy bills, spread out over six months from October.

This is in replacement of the £200 "loan-not-loan" that had originally been announced last year by the Chancellor.

Critics said this support doesn't go far enough to help those worst-hit by the cost of living crisis, as the £200 had to be repaid at a rate of £40 per year from 2023.

This scheme will no longer happen now, as it has been replaced by the £400 discount off your energy bills, with this money no longer needing to be paid back.

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