In response to ongoing inflation and rising household costs, the Department for Work and Pensions (DWP) has introduced a £300 cost-of-living payment for eligible UK households in 2025. This one-off payment is designed to help ease financial pressure in the coming months.
Below you’ll find key details: who qualifies, when payments begin, how to apply, and a breakdown of amounts and rules—everything you need to know ahead of the rollout.
What Is the £300 Cost-of-Living Payment?
The £300 payment is a non-taxable, one-off support payment announced for 2025 to support households already on means-tested or disability-related benefits.
It is separate from regular benefit payments and is intended to help with escalating costs of energy, groceries and everyday living expenses.
Importantly, you don’t receive it unless you meet eligibility criteria, and you may need to apply or maintain your qualifying benefit status ahead of the payment date.
Eligibility Criteria: Who Qualifies?
Below are the core eligibility rules of the £300 payment:
| Rule | Requirement |
|---|---|
| Qualifying benefit receipt | You must be receiving one or more specified benefits (such as Universal Credit, Pension Credit, etc.) at the assessment date. |
| Assessment date | You must be receiving at least one of these benefits on a specified eligibility date—for example 8 June 2025 (pending formal confirmation). |
| Age and residency | You must be a UK resident and meet separate age criteria depending on the qualifying benefit. |
| Bank payment ready | Your benefit payment account and details must be active and up-to-date so the automatic payment can be made. |
Examples of qualifying benefits may include Universal Credit, Income-related Employment and Support Allowance (ESA), Income Support, Pension Credit, or certain disability benefits. If you’re already receiving one of these, you may automatically qualify for the £300 support.
Payment Schedule & Mode
Here are the key payment details:
- Payment amount: £300 (one-off)
- Payment period: Late June – Early July 2025 (exact dates vary by circumstances)
- Payment mode: Automatic credit to your same bank account used for your qualifying benefit
- Application required: In most cases no separate application—provided you meet the eligibility rules and have correct details on file
- Back-dated claim not available: You must hold the benefit at the assessment date to qualify—starting a new benefit after that date usually excludes you for this payment.
Why This Payment Is Significant
With rising energy, food and general cost pressures, the £300 boost can provide meaningful relief for household budgets—especially for those relying on fixed-income benefits. Government commentary emphasises that this payment is timely ahead of summer months when bills can spike.
Because it’s a one-off, eligible recipients can receive it in addition to their regular benefit entitlements—so it doesn’t replace ongoing support.
What You Should Do Now
To ensure you receive the payment:
- Confirm you receive a qualifying benefit by the assessment date (check your benefit award).
- Update bank account details in your benefit journal or via the DWP to avoid failed payments.
- Avoid scams: DWP will not ask for payment to release the support—official payments are automatic.
- Keep evidence of your benefit status if you receive a letter—though no additional application is typically required.
- Monitor your account in late June/July 2025; if you were eligible but don’t receive the payment, contact DWP.
The DWP’s £300 cost-of-living payment in 2025 is a timely boost for eligible households facing rising expenses. If you receive a qualifying benefit and meet the eligibility criteria on the assessment date, your payment will arrive automatically in late June or early July 2025.
Make sure your details with DWP are up to date, avoid scams, and watch your bank account for the credit. This payment is one-off, non-taxable and designed to help ease financial pressure—so if you qualify, it could make a meaningful difference this summer.
FAQs
Do I need to apply separately for this £300 payment?
In most cases, no separate application is required if you already receive a qualifying benefit and were registered by the assessment date. Just ensure your details are up-to-date.
Will this payment affect my other benefits?
No. The £300 is non-taxable and should not reduce your regular benefit payment or other entitlements.
What if I start receiving a qualifying benefit after the assessment date?
Unfortunately, you will likely not qualify for the one-off £300 payment because your benefit must be active on the eligibility assessment date (for example, 8 June 2025) to receive it.
