Millions to receive latest cost-of-living payment

Eight million people on low incomes who receive certain benefits will start getting the second instalment of a targeted cost-of-living payment.

The £324 payment would be made directly into bank accounts between now and 23 November, the Department for Work and Pensions (DWP) said.

Those who qualify via tax credits will receive it by the end of the month.

A first grant of £326 was paid earlier in the year and, together, they are designed to assist with rising bills.

The support, totalling £650, is for those across the UK on certain benefits, including Universal Credit and pension credit. It is the largest part of direct financial assistance from the government to tackle costs such as energy bills.

The funds are paid directly into the same accounts used to receive benefits payments, with the reference of the recipients' national insurance number followed by "DWP COL".

Everyone is being urged to take care not to be drawn in by scams which exploit those expecting the money. The official payments will be automatic, and no additional details are required to be submitted.

Eligibility depends on receiving one of the following benefits:

To be eligible for the latest instalment, people must have been claiming and entitled to a benefits payment between 26 August and 25 September, with the exception of pensioner households, who may be able to have a new pension credit claim backdated.

People are not eligible for these payments if they receive New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker's Allowance - unless they get Universal Credit.

Anyone who thinks they are entitled to the help but who has not received it should contact the office that pays their benefit or tax credits, or report it here.

The 1.1 million people who only receive tax credits, rather than any of the other benefits, will receive the second instalment from HM Revenue and Customs (HMRC) between 23 and 30 November. The payment reference will be "HMRC COLS".

Work and Pensions Secretary Mel Stride said: "We understand that people are struggling and that is why we have consistently acted to ensure millions of low-income families are supported. We will continue to act with compassion as we navigate challenging global economic circumstances."

He said the money would help the most vulnerable who were worrying about their finances through the winter months.

The payment comes as data from finance company Barclaycard suggested that spending on essential items, such as fuel and groceries, increased by 5.7% year-on-year in October.

That was steeper than September's growth of 3.3%, reflecting the impact of rising prices, it said. Barclaycard sees nearly half of the UK's credit and debit card transactions

It predicted that many consumers would set spending limits for Christmas.