Millions of households will receive a £150 cost-of-living payment from the end of next month, the Government has said.

The one-off payment, announced in May, will be paid automatically to people who receive certain disability benefits from September 20, the Department for Work and Pensions (DWP) said.

The majority of eligible people will receive their payment within a couple of weeks of this date, it added.

The payment is intended to help disabled people with the rising cost of living and the higher costs they face, such as for care and mobility needs.

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It comes on top of other cost-of-living payments totalling £650 for disabled people on low incomes.

All households will receive £400 to help towards energy bills and an extra £150 for properties in council tax bands A-D in England.

Overall, the Government has announced a £37 billion package of support to help people with rising costs.

Minister for disabled people, health and work Chloe Smith said: “We know disabled people can face additional costs, which is why we are acting to help reduce the financial pressures on the most vulnerable.

“This £150 disability payment is on top of the £1,200 most low-income benefit claimants will also receive and alongside wider support targeted at disabled people, including help with transport and prescription costs.

“We know it’s a worrying time for some people and I’d urge them to check they are getting all the support on offer by searching Help for Households.”

Chancellor Nadhim Zahawi said: “We know that rising prices faced by many countries around the world are a significant worry for many people here in the UK, especially those most vulnerable to additional costs.

“Today’s announcement that disabled people will begin to receive an additional £150 payment from the end of September reinforces our commitment to help UK households through the challenging times ahead.”