Legacy Benefit claimants could be waiting months for Rishi Sunak’s £650 boost

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Many people will get their first payment in July, however those on legacy benefits could be left waiting longer and paid their first instalment in autumn. On Thursday, May 26, Rishi Sunak announced a bumper £15billion relief package to arm the nation with a boost to help combat rising energy bills.

One of the stand-out measures in the package was a £650 payment for low-income households.

It is being paid to people who receive means-tested benefits.

The Department for Work and Pensions will split the £650 payment into two lump sums. Some will get £325 from July, and the second £325 in the autumn.

However tax credit claimants could be waiting an extra two months as autumn starts in September.

The delay to payments is in place in order to avoid “duplicate payments” – we explain below.

Tax credits is a “legacy benefit” – there are six of these types of benefit that will be replaced by Universal Credit by the end of 2024.

These benefits are:

  • Working Tax Credit
  • Child Tax Credit
  • income-based Jobseeker’s Allowance (JSA)
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Housing Benefit

At least eight million people qualify for this payment of £650 announced by Chancellor Rishi Sunak last week.

Cash-strapped Britons who rely on Universal Credit and legacy benefits will be keen to find out when they will receive the payment announced by Rishi Sunak.

Millions of benefit claimants will receive a one-off payment of £650 plus a further £400 energy bills discount over the next few months to help them cope with the cost of living.

People may be receiving tax credits alongside other legacy benefits – so may already be getting a cost of living payment because they are in receipt of this benefit.

So the £650 payment to those on tax credits only will be dished out at a later date to avoid any double payments being made.

Britons don’t need to do anything to get the £650 cost of living payment.

This will be given out automatically. To get the first payment, people will need to be on eligible benefits or have begun a successful claim which is later, as of May 25 this year.

HMRC and the DWP will set out the eligibility date for the second payment in due course.

Those on tax credits, will get their payments from HMRC and they will arrive “shortly afterwards”.

It is not confirmed if each payment will be 50 percent of the total, i.e £325, or whether they will be different amounts.

By making a one-off payment the Chancellor has avoided a “consolidated” – or in other words, permanent – increase to benefits that would help the poorest in years to come.

Millions of people who aren’t on means-tested benefit claimants yet rely on Carer’s Allowance or Personal Independence Payments won’t receive the first payment of £650.

Around four million people rely on Carer’s Allowance and PIP but don’t necessarily claim Universal Credit or one of the legacy benefits.

Carers are saving the British economy £132billion a year but will not automatically receive this help, money saving expert Martin Lewis highlighted last week.

The following benefits won’t qualify for the payment:

  • Attendance allowance
  • Carer’s allowance
  • Child benefit
  • Disability living allowance (DLA)
  • Contributory, or “new style”, Employment and Support Allowance (ESA)
  • Guardian’s allowance
  • Contribution-based, or “new style”, Jobseeker’s Allowance (JSA)
  • Maternity allowance
  • Personal Independence payment
  • State pension
  • Statutory adoption, maternity, paternity and shared parental pay
  • Statutory sick pay

The benefits which ARE eligible include Income-based Jobseekers Allowance, Income-related Employment and Support Allowance and Income Support, as well as the Working Tax Credit, and Child Tax Credit, and also Pension Credit.

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