First cost of living payment lands in bank accounts across UK 

The first instalment of £326 will be paid out from Thursday.

First cost of living payment lands in bank accounts across UK  iStock

Nearly 700,000 families in Scotland are being sent £326 to help with the cost of living.

It is the first of two payments being made by the UK Government to support low-income households.

A further £324 will be paid out later this year as part of the Government’s £37bn support package.

The money will be available to over eight million households on means-tested benefits in the UK.

Between Thursday, July 14, and Sunday, July 31, those eligible will have the payment enter their bank accounts.

The payment will be tax-free and will not count towards the benefit cap or have any impact on existing benefit awards.

The Government has explained that combined with other support, millions of families will receive at least £1,200 by Christmas to help ease cost of living pressures.

It is also estimated that one in ten people in the UK will receive a £150 disability payment in autumn.

And millions of pensioner households could receive an extra £300 from Winter Fuel Payments in November and December to help with heating bills.

Just over 100,000 families in Glasgow are estimated to be eligible for the means-tested cost-of-living payment.

In Edinburgh, there is estimated to be slightly more than 50,000 households eligible.

Prime Minister Boris Johnson said the payment is a signal to families that the Government is “on their side” in helping them through cost of living pressures.

“Just as we looked after people during lockdown, we will help them get through these tough economic times,” he said.

“Today’s payment is the signal to millions of families that we are on their side and we have already promised more cash in the autumn, alongside other measures– including our Help for Households – to support the vulnerable and ease the burden.”

Work and pensions secretary Therese Coffey said: “Our help for households will begin landing in bank accounts today as we make sure those on the lowest incomes get the support they need in the face of rising costs.

“This first instalment of £326 should reach all eligible low-income households by the end of July.”

Newly-appointed chancellor Nadhim Zahawi said the payments are a “vital part” of the Government’s support package to help people deal with price rises.

“It’s great that millions of the families who are most in need are starting to receive their cost of living payments, which I know will be a massive help for people who are struggling,” said Zahawi.

“Alongside tax cuts, changes to Universal Credit and the Household Support Fund, these payments are a vital part of our £37bn support package to help people deal with rising prices.”

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