The Department for Work and Pensions (DWP) said £37bn had been allocated to help qualifying low income households in England, Wales, Scotland and Northern Ireland to meet soaring costs.

The first instalment of £326 will land in bank accounts from 14 July 2022, continuing to the end of the month. A second payment of £324 is set to follow in the autumn.

Pensioners will also receive an extra £300 in the winter alongside the fuel allowance.

Work and pensions secretary Thérèse Coffey said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living.

“This one-off payment totalling £650 is part of our £37 billion cost of living support package that will put an extra £1,200 into the pockets of those most in need.”