About 23,000 people are expected to receive a total of £650 - in two installments - under the Government's new Cost of Living Payments scheme.
But some politicians and action groups have criticised the amount as not nearly enough to help families tackle the growing cost of food, fuel and energy which is being driven up by a combination of 40 year high inflation rate of 9.1 per cent, tax hikes and the impact of the Ukraine war.
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Figures from the Department of Work and Pensions (DWP) show that about 22,700 families in Peterborough are to receive the payments.
A first payment of £326 will automatically be sent out between July 14 and the end of the month.
It will be followed by another payment of £324 in the autumn.
Those who will benefit are families receiving means-tested benefits – including universal credit, jobseeker's allowance, or child tax credits.
It comes alongside a £150 payment for those who claim disability benefits, set to be paid in the autumn – with the same figures showing around 12,300 disabled individuals are set to benefit in the area.
Peterborough MP Paul Bristow said: “Many people are struggling with the cost of living crisis and the Government is listening and taking action.
“It is a start and there will be more later in the year.
“This is the latest measure that we are taking for hard working families in Peterborough.
“Further support for the most vulnerable will be coming.
“There has already been a £150 Council Tax freeze and £400 will come off energy bills later this year.
Mr Bristow added: “I will continue to push for further measures for Peterborough struggling due to this global cost of living crisis.”
Councillor Shaz Nawaz, the Labour group leader on Peterborough City Council, said: “I’m pleased that some residents will receive a payment towards cost-of-living.
“This is a start. The problem we have is that the payment nowhere near covers the escalating costs.
“Many people are skipping meals, food banks are running short of food, people can’t afford to pay their utility bills, it’s very bad out there for lots of people.
“The government needs to get its act together and provide adequate funding for people who need help right now.
“Alongside this, they need to step in and reduce the levy on imported food and pass that down to end buyers.”
“Food banks need support as they are on the frontline providing much needed food. Theo government ought to run a special programme to assist them for at least the next six months and review thereafter.”
Peter Kelly, director of the Poverty Alliance charity, said: “We can’t allow any delays to cost of living support packages.”
The DWP estimate around 8.2 million UK families are set to receive a means-tested cost-of-living payment across the UK – including 627,000 in the East of England, or 23.9 per cent of households in the region, according to the latest census data.