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Universal credit claimants to receive £650

Isobel Lawrance 9th Jun 2022 2 Comments

Reading Time: 2 minutes

Over the coming months, those who receive certain benefits will receive some financial support. This is to help with the rising cost of living. Universal Credit claimants will receive the £650 cost of living payment.

Beginning in July, the £650 support package will be split into two. The first £325 payment will be paid to Universal Credit claimants next month, the government have announced.

Those who receive legacy benefits and those on pension credits will also receive this financial support from the government in July. An exact date to receive this money has not yet been announced, however.

The second half of this payment, another £325, will be paid to Universal Credit claimants in Autumn. This equals the £650 payment promised by the government to help those in receipt of benefits with the rising cost of living.

It is important to note that these lump sums will be tax-free and will not count towards the benefit cap. This means it will not impact any other benefits or financial support you may receive. It will be available for claimants all across the UK, too.

There are two other types of payment those on Universal Credit can receive. If you need a little extra financial support, why not look into the following?

Hardship Payments

Hardship payments are available for those struggling to pay for everyday essentials, such as food. It generally applies to those who have has their benefits stopped or reduced and helps to keep you afloat in periods of uncertainty.

The amount tends to be equivalent to 60% of your Universal Credit amount. However, you will be required to pay this amount back, and it will be deducted from future Universal Credit payments you receive.

Don’t forget, here at MoneyMagpie we do monthly roundups of the hardship grants available for you. Because they are grants, you won’t need to pay them back. It’s worth a look. You can find the hardship grants available for June 2022 here.


Advanced Payments

If you are a new claimant of Universal Credit, you may be able to ask for an advance payment to cover any emergency expenses or bills. The Department for Work and Pensions (DWP) can also provide backdated payments where necessary.

Again, advanced payments will come out of the monthly Universal Credit payments you receive. This may leave you short later on in the month, so it is worth evaluating whether it is an essential move or not.

Again, you can find all of the hardship grants available on our site. You can find the hardship grants available for June 2022 here.

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1 year ago

Wouldn’t a small increase in the monthly payment be better than a lump sum?

Andrew Greenwood
Andrew Greenwood
1 year ago

Hi, I am on ESA will i receive the money the same as people on Universal credit?
Thank you.

Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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