Thousands on Universal Credit won't get £650 cost-of-living payment due to loophole

Those expecting to receive £650 cost-of-living payment may be in for a shock, following the emergence of a loophole

Published

Over eight million Brits across the UK are set to receive the means-tested benefits in two lump sums later this year.

The Government website has since revealed that if you have a joint benefit claim with a partner you will only be entitled to one £650 payment.

This means some households will only receive one payment, even if they are expecting two.

The UK is facing the worst cost of living crisis in over 40-years
The UK is facing the worst cost of living crisis in over 40-years

The guidance states: "If you have a joint claim with a partner, you will get one payment of £650 for both of you, paid in 2 lump sums from July 2022 and in autumn 2022, if eligible."

The payment was announced by Rishi Sunak last month in a move to help struggling families cope with the fastest rising standards of living in 40 years.

The Chancellor faced increasing pressure from the public to support the most vulnerable households, after it was confirmed energy bills could spike up to £2,800 later this year.

The £650 one-off cost of living payment will be payed in two chunks, and in order to receive the first payment you will need to be on eligible benefits or have begun a claim which is successful , as of May 25, 2022.

Those receiving the following benefits will see the £650 payment in their account:

  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Pension Credit

The Government is also dishing out £300 to millions of pensioners a £150 extra chunk to disabled people.

The payments will exclude tax and won't contribute towards the benefit cap or influence benefits people receive.