Five loopholes that mean you won’t get the first half of £650 of living expenses in July

To be eligible for the £650 you must first claim certain benefits – but there are other circumstances that can mean you miss out on the money – even if you claim the right kind of support

We explain who will receive the £650 living allowance
We explain who will receive the £650 living allowance

Millions of people who claim benefits receive a £650 living allowance to help with rising bills starting next month.

The money will be issued in two parts, with the first installment of £326 arriving in bank accounts of most eligible households from July 14.

The second payment of £324 will follow in the autumn, although no firm date has been announced yet.

To be eligible for the £650 you must first claim certain benefits – see the full list below.

But there are other circumstances that can cause you to miss out on money next month — even if you use eligible benefits.

We explain …

You have to use certain services

The £650 payment is only available to those claiming certain means-tested benefits.

These are benefits that take your income and savings into account, including:

Your benefits must not be contributory

People who receive defined contribution benefits, where payouts depend on Social Security contributions over a period of time, will not receive the £650.

This means that not all applications for unemployment benefit and employment and assistance benefit will be accepted for payment.

The earnings-related Employment and Support Allowance is on the list of benefits authorized by the Government for the £650, but the Contributory Employment and Support Allowance is not.

Similarly, if you’re claiming earnings-related unemployment benefit but not contributory unemployment benefit, you’re eligible.

You claim tax credits

Claiming tax credits will give you the £650 payment – but the first installment won’t arrive in July.

Those claiming Universal Credit, Income-Contingent Employment and Support Allowance and Jobseeker’s Allowance, Income Support and Pension Credit will get £326 in July and a second payment of £324 in the autumn.

Those who claim tax credits will receive their first payment slightly later.

The first installment is not expected to be processed until autumn, a second payment is to follow in winter – however, an exact date has not yet been set.

Your benefits must have started by a specific date

You must also have claimed your benefits by a certain date to receive the first installment of £650.

The waiting period is April 26, 2022 to May 25, 2022.

For Universal Credit, you must have been eligible for, or subsequently been found eligible for, a payment for a Evaluation Period ending within these dates.

This timeframe is for the first installment only and includes tax credit claimants.

The deadline for claiming the second payment has not yet been set – meaning thousands of Britons claiming at a later date may be eligible for the final installment.

The government has not said when it will publish the criteria for the second payment.

If you have a joint entitlement, you will only receive one payout per household

If you’re in a joint benefit entitlement with a partner, you’ll only get one payment of £650 – not two.

The news comes as a blow to households who may have been expecting £1,300 rather than £650.

This essentially corresponds to one payment per claim.

I am not eligible for the £650 – what help can I get?

There are two other one-off payments to vulnerable households.

That includes £150 for those claiming certain disability benefits and £300 for pensioners receiving winter fuel payments.

Every home in England, Scotland and Wales will also get a £400 rebate on their energy bill, spread over six months from October.

The Household Support Fund has also been expanded by a further £500m to help families unable to claim living expenses.

Some of the help offered through the Home Support Fund includes money for your bills and supermarket vouchers.

However, support varies between councils – as do eligibility criteria.

This means that each municipality decides who to give the money to and how the money should be spent – so you could be faced with a postcode lottery in terms of the help available to you.

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Fry Electronics Team

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