Cost of living crisis: What cost of living support is available including £650 payment, who is eligible and when will payments will be issued?

The former Chancellor announced £15bn worth of support to help households across the UK cope with the rising cost of living.

The emergency package will see every home given at least £400 towards energy bills, while around eight million vulnerable households are in line to receive support of at least £1,200 this year, including a new one-off £650 cost of living payment.

Boris Johnson, who recently resigned as prime minister, warned that this year is ‘going to be difficult’ and that the government ‘cannot solve every problem’, but said the package will help ‘get us through’ until prices start to abate.

But what cost of living support is available and who is eligible?

Here’s everything you need to know:

£150 Council tax rebate

Around 80 per cent of households in council tax bands A to D in England and Wales are eligible to receive a £150 council tax rebate to help with the rising cost of living.

Councils began paying the rebates from April and many households who pay by direct debit should have already received it.

Those who do not pay by this method should be contacted by their council to provide details so the payment can be issued.

The government has said all rebates must be paid by September 30 and it will be provided as a separate payment, rather than as part of your council tax bill.

National Insurance threshold increase

The National Insurance threshold rose from £9,880 to £12,570 per year on July 6.

The increase means that workers will be able to earn £12,570 per year without having to pay any income tax or National Insurance.

It amounts to a £6 billion tax cut for 30 million people across the UK, and a tax cut for employees worth £330 per year.

£200 Household Support Fund

Before his recent resignation as Chancellor, Mr Sunak extended the lifespan of the Household Support Fund twice to help combat the cost of living crisis.

The fund is now available until March 2023, granting local authorities £1.5 billion in total to hand out over 18 months to residents who they deem to be most in need of financial help.

How much individuals will receive will vary depending on household circumstances and the calculation will be decided by the local council.

However, £200 is the headline rate.

To apply for the fund, type in your postcode here and search ‘Household Support Fund’ on your local council’s website.

On the site, you will be able to see whether you are eligible, how much you may receive, and how the council is distributing the money.

£400 energy bill discount

The ex-chancellor announced a £400 energy bill discount that all households are set to receive as energy bills skyrocket across the UK.

It will replace the £200 discount which was announced in February and it has now turned into a grant, meaning that households will not have to repay the £400.

The £400 discount will be available in October and it will be paid directly to households in the UK.

£650 one-off cost of living payment

A £650 one-off payment will be available to around eight million low-income households in the UK who are on benefits including Universal Credit, Tax Credits, Pension Credit, and legacy benefits.

Individuals do not need to apply for the grant as the Department for Work and Pensions (DWP) will pay it directly into bank accounts.

The grant will be paid in two instalments, with the first expected to drop from today (July 14) and the second later in the autumn.

£300 payment for pensioners

Pensioners will be able to receive a one-off grant of £300.

Those who are eligible include those who are over the state pension age (66 years old or above).

This will be in addition to the winter fuel payment and it will be paid directly to those eligible from November.

£150 payment for those on disability benefits

Those on disability benefits will receive an additional payment of £150 this year.

The payment will be available to those who claim the following benefits:

-Disability Living Allowance

-Attendance Allowance

-Constant Attendance Allowance

-Personal Independence Payment

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-Scottish Disability Benefits

-Armed Forces Independence Payment

-War Pension Mobility Supplement.

Eligible individuals do not need to apply for the grant and it will be paid directly into bank accounts.

This payment will be made by September 2022.

To find out more about the cost of living support, visit the gov.uk website.