The U.K. government is set to make a series of “cost of living” payments beginning Thursday (July 14) to millions of households in the country to help struggling Britons keep up with soaring food prices and energy bills, according to a June 22 press release.
Low-income households on means-tested benefits will receive two installments totaling 650 pounds ($766) from the Department for Work and Pensions.
The first 326 pounds ($384) will be paid by the end of July, marked as “DWP Cost of Living,” the government said. It will be transferred automatically into the benefit-receiver’s bank, building society or credit union account.
The second installment of 324 pounds ($382) will be transferred in the fall.
Pensioners and people with a disability will also receive payments of 300 pounds ($354) and 150 pounds ($177) respectively later this year as part of the U.K. government’s 37 billion-pound ($43.6 billion) support package.
According to the government, eight million low-income households, eight million pensioner households and six million recipients of disability benefits will receive the payment.
A spokesman for the Department for Work and Pensions said: “We are on track to process the first installment by the end of July. All eligible households will automatically receive the first installment, and no one needs to worry they will miss out.”
As PYMNTS reported last month, the U.K. is currently experiencing a cost-of-living crisis fueled by high energy prices and supply chain issues stemming from Russia’s invasion of Ukraine. In the face of inflation touching the double figures, the country’s poorest households are the hardest hit by sky-high food prices.
Read more: UK Shoppers Feel Squeeze as Average Annual Grocery Bill Rises by £380 YoY
Britons can expect to see their annual grocery bills jump by 380 pounds ($448) this year as food price inflation hits a fresh 13-year high, according to data from U.K. data analytics firm Kantar.
For all PYMNTS EMEA coverage, subscribe to the daily EMEA Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More