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Northern Ireland cost-of-living payments start to roll out

Hispanolistic/Getty Images Woman looking at billsHispanolistic/Getty Images

Some of Northern Ireland's most vulnerable households will start to receive the first of two cost-of-living payments from Thursday onwards.

It is part of a £37bn UK-wide package to help people cope with high prices.

The first payment of £326 will be paid automatically to anyone in Northern Ireland, England, Scotland and Wales who receives certain benefits.

It should arrive some time between 14 and 31 July. A second payment of £324 is set to follow in the autumn.

When the scheme was announced in May, the government confirmed the cash would be tax-free and would not count towards someone's benefits cap.

More than eight million UK homes receive Universal Credit, tax credits, pension credit and other means-tested benefits.

When will it reach bank accounts?

"Most people entitled to the first instalment of our cost-of-living payment will receive it between now and 31 July," said a statement from the UK's Department for Work and Pensions (DWP).

In respect of Northern Ireland, a spokesperson for Stormont's Department for Communities said: "As per the DWP statement most of the first cost of living payments are being made between 14 and 31 July.

"These payments are being made in batches with local payments due to reach most customer accounts on 20 July.

"A small number of customers here may receive their payment before or after 20 July," they added.

Separately, all homes in the UK, regardless of how well off they are, are set to get £400 for help with energy bills this autumn.

The grant will apply directly for households in England, Scotland, and Wales.

The equivalent funds should be given to Northern Ireland to distribute, although due to the lack of a functioning devolved government at Stormont, the way to do this has yet to be worked out.

Earlier this month, further energy price hikes came into effect across Northern Ireland, meaning tens of thousands of customers have had to pay more for gas and electricity.

Inflation - the rate at which prices rise - is currently at a 40-year high as the war in Ukraine and the pandemic push up the cost of everyday essentials.