When is the first £326 cost of living payment due?

If you’re relying on benefits or find yourself struggling with the rising cost of everyday essentials like energy, groceries, or heating, there’s some good news coming your way. Millions of people across the UK are set to receive a one-off grant totalling £650 as part of the government’s response to the cost-of-living crisis. Here’s everything you need to know—why this payment exists, who’s entitled, how it gets paid, and what other help is available to ease your financial burden.

What’s This £650 Cost-of-Living Grant?

This grant was first announced by former Chancellor Rishi Sunak and is being distributed to millions of households through two main instalments:

• First payment: £326 between Thursday 14 July and Sunday 31 July 2025
• Second payment: £324 in the autumn months, timed to help with heating costs as winter approaches

That adds up to £650 in total, designed to provide targeted help when it matters most.

Who Will Get the Grant?

You don’t need to apply—if you received certain means-tested benefits within the eligible period, you’ll automatically qualify. Here are the covered benefits:

• Child Tax Credit
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Pension Credit
• Universal Credit

In total, up to 8.4 million households are expected to benefit from this support.

A Heads-Up for Working Tax Credit Recipients

If you receive Working Tax Credit, the payment schedule is slightly different:

• First instalment of £326: delayed until autumn
• Second instalment of £324: follows later in the winter

Exact dates haven’t been confirmed yet, but both payments are still coming.

Extra Support for Those on Disability Benefits

People receiving disability benefits—including Disability Living Allowance (DLA), Personal Independence Payment (PIP), or the War Pension Mobility Supplement—won’t get the full £650, but do get £150 in September 2025 to help cover extra costs.

Even More Help Coming Your Way

To help manage bills and essential costs, several other support measures are being provided:

£400 Energy Bill Discount

• Starting October 2025, every household across England, Scotland, and Wales gets a £400 discount on energy bills, spread over six months.
• You’ll see this applied automatically on your bill—no action needed.

£300 Pensioner Winter Fuel Payment

• If you qualify for the Winter Fuel Payment (usually those aged 65+), you’ll receive an extra £300 on top of your usual support.

Local Support Through Household Support Fund

To reach people needing immediate help, councils administer the Household Support Fund, with £1.5bn allocated for distribution from October 2021 to March 2025. Funds are used to help with essentials like food, heating, and rent—but the final amount (often around £200) and how you apply depend on your local authority. Just visit your local council’s website and search for “household support fund” with your postcode to find out more.

How to Access All This Help

Here’s a breakdown of action steps and timelines:

What You Need to Know	How to Check / Do It
£326 instalment	Check for deposit between 14–31 July if you’re on qualifying benefits
£324 instalment	Expect this payment in autumn—particularly helpful for winter bills
£150 Disability Bonus	Paid in September—check your bank or communication from DWP
£400 energy discount	Automatically applied from October, across energy bills
£300 Winter Fuel	Applied automatically if you’re already receiving it
Household Support	Apply via your local council’s website—search your postcode for details

What If You Don’t Get Paid?

Even though most payments are automatic, delays can happen. Here’s what you can do:

1. Check bank statements: Look for entries labeled ‘DWP COL’ or ‘HMRC COLS’ over July–October
2. Review your benefit status: Were you claiming between January and now?
3. Report any missing payment: Use GOV.UK to report it or contact the DWP or HMRC directly
4. Update your details: Ensure your current address, bank, and contact info are correct to avoid delays

Why This Matters Right No

Inflation has pushed up essential living costs—food, energy, transport—all across the board. These payments are designed to help you breathe easier, especially during summertime peak expenses and the upcoming winter.

• The £326 July payment helps with mid-year costs like groceries and utility bills.
• The £324 autumn payment supports winter heating.
• The £400 energy discount eases monthly energy payments throughout winter.
• The £300 for pensioners tackles heating costs when energy needs rise.
• The £150 disability bonus helps those facing the highest ongoing costs.

Tips to Maximise Support

• Stay updated: Check GOV.UK and your bank statement regularly
• Apply for local help: Browse council sites for funding like Household Support Fund
• Use free budgeting advice: Organisations like Citizens Advice and the Trussell Trust offer free support
• Manage debt: Use services like StepChange to keep finances stable
• Talk about what’s stressed you: Services like Samaritans (116 123) are free and open to anyone struggling

Conclusion

The UK government’s £650 cost-of-living grant offers meaningful boost across multiple areas:

• £326 in July 2025
• £324 in autumn 2025
• £150 bonus for disability benefit recipients in September
• £400 energy bill discount from October
• £300 Winter Fuel Payment for pensioners

Together, these payments are designed to help families manage essentials, reduce financial pressure, and ease the burden of everyday life during tough economic times.

Stay informed, check your payments, apply for council support if needed, and use free resources if finances are stretched. Let me know if you’d like help with specific benefits, budgeting advice, or finding local resources—I’m here to help.

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