Millions of UK households are set to receive the first of two payments to help them cope with the cost-of-living crisis on July 14.

Some of the most vulnerable Brits will receive £326 next month, in the first payment for low-income households on Universal Credit, Tax Credits, Pension Credit and legacy benefits. 

They will receive the remaining £324 in the autumn ahead of an expected further rise to energy bills in October. Ofgem warned that bills could increase by £800, after already seeing a spike of £700 on average in April. 

Legislation to confirm the £650, as well as the other elements of the Government’s support package, is being laid on Wednesday.

The payments are designed to be deliberately slightly unequal to minimise fraud risks from those who may seek to exploit this system.

To be eligible for the payment, a successful benefits claim needs to have been started by May 25. 

Package worth at least £1200 for vulnerable families

Chancellor Rishi Sunak said: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help.

“In July over 8 million people will get their first £326 payment to help with rising prices, as part of a package worth at least £1200 for vulnerable families.

"I said we would stand by people when they needed help, and we are.”

When an increase in universal support and the discount on energy bills are added to the one-off payment, eight million households can expect cost-of-living support of at least £1200. 

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.”

What cost-of-living grants have been announced by Rishi Sunak? When can you expect them? 

On May 26, the Chancellor announced a series of grants to help ease pressures caused by skyrocketing bills and prices. 

  • All UK households will receive a £400 reduction in their energy bills

This rebate will come into effect from October after Mr Sunak doubled it from £200 in May. A previous requirement to pay it back has also been scrapped. 

  • One-off cost of living payment for low-income households on Universal Credit, Tax Credits, Pension Credit and legacy benefits

The first payment of the £650 grant will be paid out on July 14, the UK Goverment confirmed in June. 

It has been split into two payments of £326 and £324. 

Those on the following benefits qualify for the cost-of-living payment: Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit, Pension Credit.

  • One-off cost of living payment for pensioner households

Pensioners who receive the Winter Fuel Payment will receive a £300 payment in November. The exact dates are set to be confirmed soon.

  • One-off cost of living payment for individuals receiving disability benefits

People receiving disability benefits will receive £150 before the end of September. The exact dates are set to be confirmed soon.

Are prices still rising?

Inflation, the rate at which prices rise, has continued to peak amid the war in Ukraine and the effects of the coronavirus pandemic. 

The cost of living in the UK has increased at its fastest rate for four decades. 

Consumer Prices Index inflation rose to 9% in the year to April, up from an already high 7% in March, the Office for National Statistics (ONS) said.

It was the fastest measured rate since records began in 1989, and the ONS estimates it was the highest since 1982.