First UK Government Cost of Living Payment made

The UK Government made the first Cost of Living Payment of £326 in July 2022 to people in receipt of means tested benefits owing to low income¹. A second payment of £324 followed in November 2022¹. The payments were made to households on qualifying working age benefits, and the Trussell Trust, which supports a network of over 1,400 food bank centres across the UK, described the first payment as having "some positive impact on need for emergency food parcels across Wales"¹.

Food banks in the Trussell Trust network in Wales distributed 10,500 parcels in July 2022, the month the first payment was made, against an average of 13,200 parcels in the other five months of the April to September period¹. That July figure was still 8% higher than the same month in 2021¹. Record levels followed: August 2022 parcels were 45% higher than August 2021 and 61% higher than August 2020, while September 2022 was 51% higher than September 2021 and 73% higher than September 2020¹. Across the April to September 2022 period, Welsh food banks in the network distributed 77,000 emergency food parcels, including 28,000 for children, a 38% increase on the same period in 2021/22 and a 96% increase since 2017/18¹.

A YouGov survey of 1,846 adults claiming Universal Credit, commissioned by the Trussell Trust and carried out between 10 and 31 August 2022, found that 70% of those who had received the first payment had spent all of it when surveyed, less than a month after receiving it¹. Of those who had spent some of it, 64% had used it to buy food, 38% on basic toiletries and 36% on paying off debts or arrears on bills¹. Half said they were not very, or not at all, likely to be able to manage their household budget over the next three months without looking for additional support¹.

The same survey reported that 19% of people in receipt of Universal Credit across the UK said they faced real financial problems and had fallen behind with bills and credit commitments, and a further 34% said keeping up with bills and credit commitments was a constant struggle¹. In Wales, 14% reported real financial problems and 40% a constant struggle¹. On specific bills, 19% of UK respondents said they were behind on energy bills, 12% on Council Tax, 12% on water and 12% on rent or mortgage; in Wales the figures were 20%, 16%, 15% and 12% respectively¹.

Why it matters for households

The £326 payment was a one-off lump sum paid in July 2022 to households receiving means tested benefits because of low income, with a second payment of £324 in November 2022¹. The Trussell Trust's evidence indicates the money was largely absorbed by existing essentials: most recipients had spent it within a month, chiefly on food, toiletries and clearing arrears¹. The charity also noted that the November payment and the Welsh Government's fuel support scheme may have provided "some crucial respite" but had "not been enough to help them manage the cost of living crisis for an extended period of time"¹. Separately, the evidence refers to the decision to uprate benefits and raise the benefit cap in line with inflation from April 2023¹. The Cost of Living Payments guide sets out what was paid and when, and the benefits hub covers related support.

What happens next

The evidence records that benefits and the benefit cap were uprated in line with inflation from April 2023¹. No further payment dates are given in this evidence.