Over eight million households in Britain will receive a cash payment from July 14th to ease cost of living pressures, with 12,200 families in the Vale of Clwyd set to benefit.
The initial automatic instalment for means-tested benefit claimants will be £326, with the rest to follow in a second instalment in the autumn.
Tax credit claimants will also receive their first instalment of the cost of living payment from HMRC later this year, while 12,000 people on eligible disability benefits in the Vale of Clwyd will receive an additional £150.
The funding comes as part of £37 billion UK Government package to help families with cost of living pressures. Millions of households will receive at least £1,200 from the Government this year to help cover rising costs.
Meanwhile from July 6th, there will be a £330 boost to the take-home pay of 30 million people following National Insurance changes.
James said:
“As was the case throughout the pandemic, the UK Government are making sure that their financial help goes where it is needed most.
“Prices are going up in the supermarket, household bills are rising and the petrol pumps have been increasingly costly. People are understandably worried.
“Whilst it is not possible to completely shield people from the global challenges we are facing, we can help and this funding will relieve some of the pressures people are facing by putting more money in their pockets.”
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.”
Secretary of State for Wales Simon Hart said:
“Thousands of households across Wales will receive this direct and targeted support in the coming months to ease the pressures that many people are experiencing.
“Tackling the challenges around the cost of living is a key priority for the UK Government and these cash payments show that we will take the necessary action at the time it is needed.
“The second instalment of £324 will be sent to qualifying low income households from the autumn. The payments are designed to be deliberately slightly unequal to minimise fraud risks from those who may seek to exploit this system.”
The eligibility date for the second instalment will be announced soon. If customers are eligible through receiving tax credits only, HMRC will contact them and issue payments automatically, with the first instalment being made from autumn. DWP will administer payments for customers on all other eligible means-tested benefits, and customers do not need to contact them or apply for the payment.
Low-income households are benefiting from Government support in a variety of different ways this year as global inflationary pressures, exacerbated by the unjust war in Ukraine, have caused prices to rise for several essentials. The Government understands that many people are worried about the impact these rising prices will have on their household finances, which is why £37 billion of support is being provided to boost budgets and mitigate the worst of these pressures.
Support includes the direct cost of living payment of up to £650 for over eight million households on eligible means-tested benefits, a separate £300 payment for pensioners, and a £150 payment for eligible disabled people, which can be paid on top of the £650 payment.
This is on top of £400 for all households to help with energy bills, and an extra £150 for properties in Council Tax bands A-D, meaning millions of the lowest-income households will receive at least £1,200 in support this year.
Other measures include reducing the Universal Credit taper rate and increasing the work allowance (worth around £1,000 a year for two million low income families), raising the income threshold at which people start paying National Insurance from £9,500 to £12,570 (worth over £330 individually), increasing the National Living Wage to £9.50 an hour, increasing the Warm Home Discount to £150 for three million low income households, increasing the Household Support Fund to £1.5 billion to help the lowest income households with food and utility costs, and discretionary funding available via local authorities.
Fuel duty was also cut by 5p per litre for 12 months in March, and alcohol duty has been frozen for 2022/23.
