MILLIONS will receive a £325 cost of living payment from the Government soon.

This year has seen a whole host of household price increases - from the energy price cap rise to surging inflation and food prices - costing families hundreds or even thousands of pounds extra per year.

The worldwide energy crisis exacerbated by the Ukraine invasion, financial impact from the Covid pandemic, record inflation figures and a surge in the cost of goods, fuel and travel means we will all feel the pinch.

To help with the rising costs, households on certain benefits will receive financial support over the summer.

Universal Credit £650 cost-of-living payment

The Government has paid the first £325 payment to Universal Credit claimants in July.

It was also paid to those on pension credit and those in receipt of legacy benefits.

The exact payment date for the second payment hast not been confirmed and could depend on when the individual receives their benefit payment.

A second £325 lump sum will be paid at some point in the autumn, taking the total contributions to £650.

The money will be tax-free and will not count towards the benefit cap.

It will also not have any impact on existing benefits and will be available to claimants across the UK.

Cost of living support for energy bills

The price cap is set to rise to £3,549 on October 1, Ofgem confirmed, an 80% increase on the previous figure of £1,971.

The price cap figure of £3,549 applies to homes on default tariffs paying by direct debit and based on typical use.

Government support is available to help people pay their energy bills.

Households will start receiving money off their energy bills from October, with the discount made in six instalments.

A discount of £66 will be applied to energy bills in October and November, rising to £67 each month from December through to March 2023.