Rishi Sunak gives update on how £650 cost of living payments will hit bank accounts

HUNDREDS of pounds worth of cost of living payments will hit millions of bank accounts automatically, Rishi Sunak has confirmed.

The Chancellor said Brits wouldn't need to apply for the extra cash help for soaring energy bills, and the Government will dish it out.

But he also admitted that it will have to be funded by borrowing billions of pounds more money, adding to the huge Covid debts.

And he strongly hinted that the windfall tax - which will be slapped on energy giants - will be extended to cover electricity firms too.

More than 8 million Brits on Universal Credit and other means tested incomes with get a £650 payment to help with the cost of living crisis.

It will come via two lump sums later this year to help, one in July - as the energy price cap is set to go up AGAIN in October.

The second payment is expected to be made in the autumn - but the government hasn't confirmed the details yet.

Mr Sunak told MPs on the Treasury today: "The extra payments, it will be automatic, it won’t need to be claimed.

"It is done through the winter fuel payments - it's a largely automated system, DWP actively send the payments through, they will just get the cash which is a good thing.

"Whether people are confused or not, the cash will be coming to them, we will figure out the best way to communicate that."

All Brits on council tax bands A - D have already got a £150 rebate earlier this year.

And all households will get a £400 grant for their energy bills.

The £650 one-off cost of living payment for millions of lower paid Brits will be paid in two chunks.

However, those who make a Universal Credit claim with their partner will get one payment - not two.

How does the £650 cost of living payment work?

To get the first payment you will need to be on eligible benefits or have begun a successful claim which is later successful, as of May 25 2022.

The Department for Work and Pensions and HMRC will set out the eligibility date for the second payment in due course.

Those on the following benefits will get the £650 help, the government has said, known as the Cost of Living Payment.

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

We've previously explained which benefits don't qualify for the cash help.

Those who claim tax credits may have to wait longer for their cash.

There are other payments and grants and you might be entitled to now if you're on benefits and are struggling to pay your bills - you can find out more about them here.

When will the other payments be made?

Millions of households will get a £400 energy discount.

This will be made via a grant through energy firms to customers from October.

Those with pre-payment meters will get the cash via vouchers or top-ups directly, and will be paid over six months.

Ministers will also pay £300 to pensioners who get the Winter Fuel Payment. This will be made in November.

There's also a £150 to disabled Brits too, which will be cash-free and won't affect other benefits. This is due to be paid before the end of September.