Rishi Sunak announced a £15bn support package last month to help UK households struggling with the cost of living crisis.
He also confirmed the introduction of a “temporary Energy Profits Levy” – or a “windfall tax” – on energy giants, and the doubling of the existing £200 energy rebate to £400, converting it from a loan to a grant.
In an effort to help some of the UK’s most vulnerable people, he also announced a one-off payment of £650, among other measures.
Here is what we know.
What is the £650 one-off payment?
About eight million of the lowest-income households across the UK will receive a one-off £650 cost of living payment
Mr Sunak said: “We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That is why I’m targeting this significant support to millions of the most vulnerable people in our society.”
Who is eligible?
The Government’s guidance states that the payment will be given to more than eight million households on means-tested benefits, including those receiving the following:
- Universal credit
- Income-based jobseekers allowance
- Income-related employment and support allowance
- Income support
- Working tax credit
- Child tax credit
- Pension credit
According to the Government’s factsheet, claimants will need to be receiving one of these benefits or have begun a successful claim as of 25 May, 2022.
You can find more information here.
How do I claim the rebate?
Mr Sunak said the £650 payment will be sent straight to people’s bank accounts, so you do not need to apply for it.
It will be made in two lump sums, one in July and the other from the autumn.
The Chancellor said: “There is no need for people to fill out complicated forms… we will send the money straight to their bank accounts.”