A personal finance expert has warned the new cost-of-living payments going out next month will be “too little too late”.
More than eight million UK households are to get the first of two instalments totalling £650 from July 14. The initial amount is £325, with the rest to follow in the autumn.
The payments – for those on means-tested benefits – are part of a £37 billion UK Government package to help families with cost-of-living pressures.
‘Exasperating’
David Beard, editor-in-chief of Lendingexpert.co.uk, said they would provide welcome relief for many households.
But he added: “I fear it will be too little too late. Families are struggling to afford food right now – to wait another four weeks to be paid £326 when people are already massively overstretched is exasperating.
“The cost of living this year, compared to 2020, will rise for average households on average incomes by over £4,000 when you factor in the cost of energy, the National Insurance hike and inflation on everyday things like food and fuel. £650 sounds generous, but in reality, it’s a drop in the ocean”.
Michael Foote, of comparison site Quotegoat.com, said the payments would “cushion the blow” for vulnerable households but added: “What about the families who are only just about managing?
“There are millions of people that don’t claim benefits who don’t have savings they can dip into to pay for increased costs.
“These people will likely need to borrow money to afford necessities such as food and fuel, which is just nuts.”
Families up and down the country will fall into destitution but the government is failing to plan for that.”
Michael Foote, Quotagoat.com
Mr Foote continued: “The cost to fill up the average car has crept over the £100 mark, so even driving to work is becoming a worry for millions.
“Couple that with the looming energy price hike in October – I fear families up and down the country will fall into destitution but the government is failing to plan for that.”
Work and pensions secretary Therese Coffey said: “We are taking action to directly help families with the cost of living.
“This one-off payment totalling £650 is part of our £37bn cost of living support package that will put an extra £1,200 into the pockets of those most in need.”
Chancellor Rishi Sunak added: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help.”
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