Cost of living: Universal Credit claimants to get £650 support

This year has seen a whole host of household of price increases - from the energy price cap rise to surging inflation and food prices - costing families hundreds or even thousands of pounds extra per year.

The worldwide energy crisis exacerbated by the Ukraine invasion, financial impact from the Covid pandemic, record inflation figures and a surge in the cost of goods, fuel and travel means we will all feel the pinch.

How to reduce your energy bills as prices increase

To help with the rising costs, households on certain benefits will receive financial support over the summer.

A £650 cost of living payment will be paid to those receiving Universal Credit in two payments, beginning next month.

The Government has announced the first £325 payment to Universal Credit claimants will be paid in July.

It will also be paid to those on pension credit and those in receipt of legacy benefits.

The exact payment date has not been confirmed and could depend on when the individual receives their benefit payment.

A second £325 lump sum will be paid in August, taking the total contributions to £650.

The money will be tax-free and will not count towards the benefit cap.

It will also not have any impact on existing benefits and will be available to claimants across the UK.

Here are some other forms of support available to Universal Credit claimants:

Advance Payment

For those who are newly claiming Universal Credit, the Department of Work and Pensions can provide backdated or advance payment.

The support is there to help you get by until your first payment but it will have to be paid back to the government.

Hardship payment

Hardship payment is available for people struggling to pay for everyday essentials. It generally applies to people who have had their benefits stopped or reduced.

It will usually be around 60% of your usual Universal Credit payment and you will need to repay the money through your usual UC payments.