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HELPING HAND

Millions on benefits and Universal Credit to get new £650 cost of living payment under Jeremy Hunt’s plans

MILLIONS of hard-up Brits are set to receive £650 under plans being drawn up by Jeremy Hunt.

The Chancellor is expected to announce another round of cost of living payments at Thursday’s Autumn Statement.

Jeremy Hunt is drawing up plans for a new £650 cost of living payment for Brits on benefits
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Jeremy Hunt is drawing up plans for a new £650 cost of living payment for Brits on benefitsCredit: Reuters

The payment will specifically go to Brits who claim benefits.

Meanwhile, poor pensioners are likely to get £300 and there will be another £150 disability payment.

A Government source said: “Rishi Sunak saw his cost of living plan work last time and so is sticking with it again.”

During the budget, the Chancellor is also set to raise the National Living Wage to £10.40 as well as hiking pensions and benefits by 10.1 per cent with inflation.

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But he will offset the handouts with sweeping spending cuts and tax rises to repair a £60billion black hole in the nation’s finances.

Mr Hunt is also expected to reduce the Energy Price Guarantee so the average family pays around £3,000 for bills - above the current £2,500 but less than Ofgem’s £4,000.

There will not be another £400 blanket payment for all Brits but the targeted support to the poorest will be rolled out again.

Last time, the £650 payment was doled out in two separate instalments as part of people’s benefits.

Mr Sunak has vowed to be “compassionate” in the Autumn Statement but acknowledged “tough” decisions will be made.

Stealth taxes will happen via freezes to income, VAT and inheritance thresholds to generate more cash for the Treasury.

Pay demands from unions are also being rebuffed, such as nurses’ plea for an eye-watering 17.5 per cent salary hike. 

Mr Sunak today also said the private sector should also not be given generous pay hikes so inflation does not spike further.

Speaking at the G20 summit in Bali, the PM told ITV: “Of course I would say to executives to embrace pay restraint at a time like this and make sure they are also looking after all their workers. I'd say that all the time. 

“Of course in a situation like this I'm sure executives of most companies will be thinking about pay settlements for senior management, for their workers and making sure they are fair… I don't want to see a wage price spiral. It's not about me.”

Who will get the cost of living payments?

Eight million households currently get cost of living payments worth up to £650, but eligibility criteria could change under any new rules.

At the moment, you're eligible if you claim Universal Credit, Job Seeker's Allowance, Employment and Support Allowance, Income Support, Pension Credit, Child Tax Credit and Working Tax Credit.

Pensioners are also getting a helping hand with an extra £300 one-off payment from this month too.

The amount you get will depend on what you're eligible for and could be more or less than that.

How Universal Credit claimants can get help

If you're struggling with the cost of living crisis, here are some more ways to get help:

Council tax discount

Universal Credit claimants could get help with their council tax bills - and in some cases you could get a 100% discount.

Each council runs its own reduction scheme so how much your discount is worth depends on where you live.

Your circumstances will also have an effect on your discount, such as your earnings, households income, number of children you have and how many people live with you.

Your residency status and what benefits you're entitled to will also have an impact.

Household Support Fund

Extra cash totalling £421m has been handed to councils to give out to struggling families.

The Household Support Fund previously included vouchers to spend in the supermarket and for buying kids clothes in one area and £100 cash in another.

The help you can get depends on your location and your circumstances.

You can find your local council using  to see what help is available near you.

Cash for paying rent

There's cash help for anyone struggling that's available from your local council through the discretionary housing payment.

Anyone claiming Housing Benefit or the Housing Element of Universal Credit could be eligible if they are struggling with rent costs.

Each local authority dishes out the cash to those in need on a case-by-case basis and the amounts available can vary.

Here's everything you need to know about who can get the cash and how to claim.

Water bills help

Some water companies offer bill help if you're on a low income, or debt write-off schemes if you're in arrears.

What you can get depends on your water company so you'll need to contact them directly.

For instance one woman on Universal Credit slashed her bill by £600 a year thanks to a fund from Severn Trent water.

Many water companies also offer free water-saving devices that shave pounds off your bills.

Contact your supplier. Freebies include shower timers and buffalo bags, which save water with every flush. Check out .

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Large families on Universal Credit or other benefits may be eligible for a cap on their bills under the WaterSure scheme.

To qualify for the scheme you need to already have a water meter installed, and prove you need to use a lot of water.

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