The Department for Work and Pensions has obtained approval for an advance from the Contingencies Fund of £2,477,600,000. This will enable the Department to administer the first cost of living payments from 14 July, before the Supply and Appropriation (Main Estimates) Bill, which includes these measures, gains Royal Assent.
The amount covered by the advance is for the first cost of living payment to eligible means tested claimants, worth £326, provided for by the Social Security (Additional Payments) Act.
The payments will deliver immediate support to around 8 million low-income families at a time of increased costs of living.
Parliamentary approval for additional resources of £2,477,600,000 for this new expenditure will be sought in the main estimate for the Department for Work and Pensions. Pending that approval, urgent expenditure estimated at £ 2,477,600,000 will be met by repayable cash advances from the Contingencies Fund.
The advance will be repaid at the earliest opportunity following Royal Assent of the Supply and Appropriation (Main Estimates) Bill.