Eight million UK households receive first part of 'cost of living support payment'

Around eight million homes across the UK are set to receive the first instalment of cost of living support payments as part of a government package.

The Department for Work and Pensions (DWP) said £37bn had been allocated to help families struggling to meet soaring costs – with those from low-income backgrounds receiving an initial £326 on July 14.

A second payment to make up the remainder of the £650 portion is due in Autumn, while pensioners will also receive an extra £300 in the winter alongside the fuel allowance.

Work and pensions secretary Therese Coffey said the payment was the first in a £1,200 bundle of support for those toiling during surging inflation.

She added: “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.”

Every household in the country, regardless of income, will receive a £400 discount on energy bills, but critics have raised concerns the move will further fuel the rise in inflation.

Disabled people meanwhile will receive an added £150 on top of the £650 payment, the government said.

Chancellor 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.

“In July, more than 8 million people will get their first £326 payment to help with rising prices, as part of a package worth at least £1,200 for vulnerable families. I said we would stand by people when they needed help, and we are”.