Millions of cash-strapped households are to be given an extra £300 before Christmas which they won’t have to pay back.

The government money is the second of three cost of living payments, designed to help some of the poorest households manage the pressure of rising bills.

The first payment was sent out to eligible homes in April.

Those entitled to the ‘financial boost’ include those on means-tested benefits such as Universal Credit or Pension Credit. Scroll down for the full list.

The £300 will be sent by the Department for Work and Pensions, to those who qualify, sometime between October 31 and November 19.

There is no need to apply for the cash or complete an application form – instead money will be sent automatically to those held on government records as being eligible and will arrive directly into bank accounts.

Tax credits-only customers will receive their payment from HM Revenue and Customs between November 10 and 19.

To help those getting sent the extra money identify the money in their bank account, the payment reference will be the recipient’s National Insurance Number followed by DWP COL or HMRC COLS.

Mel Stride, Secretary of State for Work and Pensions, said: “The best way we can boost bank balances is by bearing down on inflation, but as we get there, we are ensuring the most vulnerable households are cushioned from high prices with a further cost of living payment.”

To receive the second cost of living payment households must have been in receipt of one of the following benefits between August 18 and September 17:

*Universal Credit

*Income-based Jobseekers Allowance

*Income-related Employment and Support Allowance

*Income Support

*Working Tax Credit

*Child Tax Credit

*Pension Credit

Eligible pensioners will also receive an extra £300 later this year in addition to the existing Winter Fuel Payment.

A third cost of living payment – which will take the total cash handed out to £900 – will be paid in the spring of next year, ministers have also confirmed.