In an interview with The Sun, IncomeMax founder, Lee Healey, has explained the changes that people can expect to their benefit payments when the cost-of-living payments from the government start from July.
The changes will impact millions of Universal Credit claimants and they form part of the government’s £15 billion package of support to help households to adjust to higher prices.
A £650 payment forms one of a series of support packages that vulnerable households may be eligible to receive, alongside a £400 energy bill grant and a £300 winter fuel discount.
The £650 cost-of-living payment will be paid out in two instalments this year, with eight million eligible UK residents eligible that are recipients of means-tested benefits. These include people claiming Universal Credit, Jobseeker’s Allowance, income-related Employment and Support Allowance, income support, Pension Credit, working tax credit and child tax credit.
From July 14, claimants receiving the £650 will see an additional £326 credited to their accounts. To receive the payment, claimants will need to be in receipt of eligible benefits as of May 25, 2022, or have started a successful claim by that date.
The second £324 instalment will be paid in later in 2022, although this could come as late as December.
Speaking to The Sun, Healey advised all claimants to check their benefit entitlements to ensure they are receiving all the help they are eligible for.
He also explained that if people eligible for the first instalment of the £650 cost-of-living payment do not receive the money, there could be several reasons behind the delay.
He said: “Those claiming tax credits might not get first payment until autumn - there will be a delay in getting paid.
“That's a pain for those who will have to wait for the help. That's why you should be aware of the dates of when the Department for Work & Pensions [DWP] will pay the help - and you can then budget accordingly.”
The benefits guru also pointed out that the £650 payment for the 1.5 million claimants of tax credits will be allocated over autumn and winter to avoid double payments, so such people should not be alarmed that it will not arrive in their accounts in July.
Healey said: “Be patient - the DWP will pay according to schedule. Wait for payments to drop. But if there’s a problem, chat to the DWP - which could be your work coach or the helpline for the particular benefit you're claiming.”
Furthermore, claimants of certain benefits could be eligible for additional help to solely the £650 cost-of-living payment.
“Many people are missing out on vital help because they are not claiming the benefits they are eligible for,” Healey said.
“For example, those claiming Personal Independence Payments are among the people who qualify for the £150 cost of living payment. But thousands who could get the help haven't claimed it - and are missing out.
“That's why it's so important to make sure you’re getting the benefits you’re entitled to.”
Claimants are able to use free online benefits calculators to determine their full range of entitlements.
Entitledto's free calculator works out whether users qualify for various benefits, tax credits and Universal Credit, and visitors will need to register to use it.
Those who wish not to register can visit consumer groups MoneySavingExpert.com and charity StepChange and use similar benefits tools powered by Entitledto's data that do not require login credentials.
Further to benefits, households in need can also apply to local authority schemes such as the Household Support Fund and other welfare assistance programmes, Healey highlighted.
The IncomeMax boss also suggested that individuals could also turn to charities for additional help if needed.
Healey said: “A good way of checking entitlements here is by using Turn2Us, which has a free grants search tool so you can find out what help is available to you.
“Energy suppliers are also giving out up to £1,500 in grants to help struggling customers pay their bills.”
Photo by Sarah Agnew on Unsplash
