Cost of living Derbyshire: How you can receive £326 grant to help your finances next month

The Government has today confirmed they are to pay the first of two cost of living instalments totalling £650 from July 14.

The initial automatic instalment will be £326, with the rest to follow in a second instalment in the autumn.

The Government says the move will see some of the hardest-up households in the city initially £326 better off under the scheme to help those most vulnerable to rising costs.

Households eligible for the payments include all those receiving the following benefits: Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension Credit.

The DWP will make the payment in two lump sums – the first from July 2022, the second in the Autumn. Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments.

To be eligible for the first instalment, claimants needed to be in receipt of one of these benefits, or have begun a claim which is later successful, as of May 25 2022.

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This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

The lump sums will be delivered in two slightly different payments of £326 and £324. The distinct value relates to a specific qualifying period, so it is simpler to determine if a payee received the correct payments, reducing the fraud risk of people who claim not to have had one of the specific two payments, as DWP will be able to clearly track those who have.

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.”

Chancellor of the Exchequer, Rishi Sunak added: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help.”