Millions on Universal Credit and benefits get £600 one-off payment, Rishi Sunak to reveal

Millions on Universal Credit and benefits get £600 one-off payment, Rishi Sunak to reveal


MILLIONS of people on Universal Credit and benefits will get a one-off £600 payment go up to help with soaring bills.

The Chancellor Rishi Sunak is set to reveal the support today as part of his plan today to help struggling households cope with the cost of living crisis.

More than eight million households will receive the lump-sum.

It comes after the regulator Ofgem warned that the price cap could rise by another £800 in October, taking the average dual fuel bill to £2,800 a year.

Mr Sunak is set to use a windfall tax on oil and gas firms to pay for the package of help for households.

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Universal Credit usually rises annually in April along with other benefits based on the inflation rate for the previous November.

The government last announced help for households back in February, including the £150 council tax energy rebate for four in five households.

It also included a £200 discount applied to every energy bill in October, which was set to be repaid over five years.

The Household Support Fund has also been doubled to £1billion, and this gives money to local councils to dish out to struggling residents in their area.

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Cost of living crisis deepens

The cost of living crisis has deepened since then and there are widespread calls to give more help to families struggling to get by.

The boss of one of Britain's biggest energy companies warned the cost-of-living crisis could endure for more than a year and a half.

The energy price cap limiting how much suppliers can charge for standard tariffs shot up by 54% in April pushing up bills for millions of people.

Around 22million households are currently on price capped tariffs as fixed deals are now far higher following a steep increase in wholesale energy costs since last year.

The price cap increase pushed the typical duel fuel bill from £1,277 to £1,971, though exactly how much you pay depends on usage.

That could rise again to £2,800 in October when the second of two annual reviews of the price cap take place, pushing even more people into financial difficulty.

Wholesale energy costs are going up due to global supply issues and the war in Ukraine.

While the price cap prevents these increase being passed on to consumers immediately, the price cap is based on the wholesale costs when it's reviewed creating a "shock" rise twice a year when they go up.

Ofgem is considering more regular reviews of the cap to spread out rises, and pass on any falls earlier.

Meanwhile other costs have gone up ranging from food to fuel, piling pressure on people's finances.

Petrol prices  have hit record highs in recent months while the price of some basic food items have shot up by as much as 60%.

One mum told The Sun how she worries that she won’t be able to feed her kids or keep her fridge running due to soaring energy bills.

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And a hard-working mum of two on Universal Credit and with a full-time job can no longer afford food or activities for her daughter.

Here's all the help you can get if you're on Universal Credit and struggling to get by.

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