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UK’s First Cost-of-Living Payments Start Hitting Bank Accounts

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The first £326 of the UK’s cost-of-living aid will start hitting bank accounts from Thursday as the government steps ups efforts to help households cope with soaring energy bills.

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(Bloomberg) — The first £326 of the UK’s cost-of-living aid will start hitting bank accounts from Thursday as the government steps ups efforts to help households cope with soaring energy bills.

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More than 8 million households on means-tested benefits are eligible for the payment, which was announced in response to unprecedented increases in energy costs. The average bill for natural gas and power is set to reach around £3,000 in October — more than double the level of a year ago. 

Thhose costs along with a jump in food prices are likely to push the annual rate of inflation above 11% later this year, the Bank of England estimates.

The payment formed a centerpiece of then-Chancellor of the Exchequer Rishi Sunak’s response to the cost of living crisis in May. 

Now, Sunak is running for the leadership of the Conservative Party and the country after his resignation helped trigger Prime Minister Boris Johnson’s decision to quit. The contest has seen further aid for households become a key debating ground for the candidates, with most advocating personal tax cuts and a further lowering of fuel duty.

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The first payment will be deposited directed into bank accounts of all households entitled to the following benefits as of May 25:

  • Universal Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Working Tax Credit, Child Tax Credit and Pension Credit

The second £324 will be paid this autumn, bringing the total to £650. Pensioners will get an extra £300 this winter and disabled people £150. Meanwhile, all households will also get a £400 discount applied to their energy bill.

Read More: How to Access the UK Cost-of-Living Support Package: QuickTake



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