Cost-of-living support will be disbursed from July

More than eight million households across the whole of the UK will receive a cash payment to ease the cost-of-living strain from 14 July.

Initial automatic instalments will be £326 for qualifying low-income households, and the rest will follow in the autumn, to an amount totalling £650.

The support is part of the £1,200 support package the government has committed to providing for the most vulnerable households in 2022.

The second instalment of £324 will be sent to qualifying low-income households in the Autumn.

The payments are designed to be deliberately slightly unequal to minimise fraud risks from those who may seek to exploit this system. The eligibility date for the second instalment will be announced soon.

Work and Pensions Secretary, Thérèse Coffey said “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living.

“This one-off payment totalling £650 is part of our £37 billion cost of living support package that will put an extra £1,200 into the pockets of those most in need.”

However, concern has been raised about the package not being comprehensive enough for vulnerable households, especially as basic pay has fallen at its fastest rate in a decade.

Imran Hussain, director of policy and campaigns at Action for Children, said that while he was “pleased the chancellor has listened,” more action is needed.

“The measures announced today will help, but won’t fully shield families with children from the pain they’re experiencing,” he said.

“Ultimately, we need a stronger social security system to ensure all families with children can meet their basic needs.

“With nearly four million children in families on universal credit, increasing the child element of this benefit would protect more children from growing up in desperate hardship and help give them the bright futures they deserve.”