Check If You Qualify

Who Will Get the Government’s £650 Cost of Living Payments?

Sharon McDougall - 9th June 2022 - 2 minutes to read

With the cost of living rising so rapidly in recent months, campaigners - including various debt help charities - have been calling on the UK government to provide direct financial support to hard-up and indebted households.

In response to those calls and the weight of pressure being put on household budgets by rising prices, the chancellor Rishi Sunak recently announced plans for a windfall tax on energy companies to raise money for direct cost of living support.

Plans are now in place for roughly 8 million of the least well-off people across the UK to receive direct payments worth £650 over the course of the next few months.

So, who is eligible to receive those payments?

Well, the essential idea behind the government’s plan is that the full £650 payouts should be given to everyone who currently claims a means tested benefit, which includes each of the following:

-          Universal credit

-          Income support

-          Pension credit

-          Working tax credit

-          Income-based Jobseekers Allowance

-          Income-related employment and support allowance

-          Child tax credit

The intention is for anyone in receipt of any of those benefits as of May 25th 2022 to receive £650 in two lump sums directly into their bank accounts, firstly in July and then at some point in the autumn.

Crucially, the payments are tax free and will not impact the benefit cap or any of the existing benefit payment situations that recipients have in place or are applying for.

Extra help with energy bills

In addition to the £650 being paid to low-income households across the country, the chancellor has now earmarked funds designed to help ease some of the pressure on households struggling to pay their energy bills.

Earlier this year, Rishi Sunak said the government would fund energy bill discounts worth £200 to each household because gas and electricity bills were rising so quickly.

However, the money involved there would effectively have been loaned so people would potentially still have seen their debt situations getting worse as their energy bills increased.

More recently, the chancellor has confirmed plans to provide for £400 discounts on energy bills that function as grants to all households rather than loans that need to be paid back.

It is also the government’s plan to provide additional £300 payments to pensioners who are entitled to Winter Fuel Payments from November this year.

If you live anywhere in Scotland and you are worried about your personal debt situation then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.

facebook colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall


Other News

Debt Levels Soaring across Scotland, New Figures Show Debt Level Rising

Debt Levels Soaring across Scotland, New Figures Show

Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’ Financial Hardship

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’

Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.

Scots with Disabilities Urged to Check Eligibility for New Benefits Scottish Man In Wheelchair

Scots with Disabilities Urged to Check Eligibility for New Benefits

Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.


Why Choose Us

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

Usp Handshake

We offer an

Instant Initial Consultation

Usp Palm Wallet

We'll Help You

Lower Monthly Payments

Usp Hand Heart


Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.


Useful tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners