With the cost of living steadily increasing across the UK, many low-income households are finding it harder to manage daily expenses. To ease this financial pressure, the UK government is offering a £300 Cost of Living Payment in June 2025, aimed at those most affected by economic strain. This support initiative, rolled out by the Department for Work and Pensions (DWP), will provide direct financial relief to individuals and families already receiving certain means-tested benefits such as Universal Credit, Pension Credit, Tax Credits, and others.
This article breaks down all you need to know about this one-time payment: who qualifies, when it will be paid, how it will be processed, and what you need to do to ensure you receive it without delay.
Table of Contents
Overview
| Feature | Details |
|---|---|
| Payment Amount | £300 (one-off) |
| Payment Dates | Between 12 June and 28 June 2025 |
| Eligible Benefits | Universal Credit, Pension Credit, Tax Credits, JSA, ESA, Income Support |
| Application Needed | No – paid automatically |
| Payment Method | Direct deposit (shows as “DWP COL” or “HMRC COLS”) |
| Official Info Site | gov.uk |
Why Is This £300 Payment Being Offered?
The UK is currently dealing with ongoing inflation and rising household costs. Food prices, energy bills, childcare expenses, and healthcare costs are pushing many low-income families closer to financial instability. Recognising this, the government introduced the Cost of Living Payment scheme as part of its broader strategy to provide financial stability to those most affected.
In 2025, this £300 payment is part of a continuing series of cost of living supports initiated in previous years. The aim is to ease the immediate burden on vulnerable families and individuals, ensuring they can afford basic daily needs.
Who Qualifies for the £300 Payment?
The £300 Cost of Living Payment is specifically targeted at recipients of certain UK means-tested benefits. If you’re receiving any of the following, you are likely eligible:
Qualifying Benefits:
- Universal Credit – whether you are claiming individually or as part of a joint claim with a partner.
- Pension Credit – designed for retired individuals with low income.
- Income-related Jobseeker’s Allowance (JSA) – for those actively seeking work.
- Income-based Employment and Support Allowance (ESA) – for people with limited capability for work due to health.
- Income Support – a benefit for those not required to seek work but needing financial help.
- Working Tax Credit or Child Tax Credit – processed via HM Revenue and Customs (HMRC), not DWP.
Note: You must have been receiving one of these benefits during a qualifying period, which the government will confirm closer to the payment window.
When and How Will the Payment Be Made?
The payment process has been made simple and automatic to reduce stress and bureaucracy for claimants.
Payment Timeline:
- The payment window is from 12 June to 28 June 2025.
- You should see the deposit in your account during this time, depending on your benefit cycle and processing time.
How It Will Appear:
- The payment will be made directly into your bank account.
- It will typically appear as “DWP COL” (for Department for Work and Pensions payments) or “HMRC COLS” (for tax credits handled by HMRC).
This payment does not require a separate application. As long as you’re receiving qualifying benefits, you will receive the £300 automatically.
What You Need to Do to Receive the Payment
Even though the payment is automatic, there are a few simple steps you can take to make sure there are no delays:
1. Keep Your Benefit Claim Active
Ensure you’re actively receiving one of the qualifying benefits during the official qualifying period (to be announced).
2. Update Your Bank Details
If you’ve recently changed your bank account or switched to a different payment method, make sure DWP or HMRC has your updated information.
3. Report Changes in Circumstances
If you’ve moved house, separated from a partner, or experienced other life changes that could affect your benefits, inform the relevant authority right away. This helps prevent errors or missed payments.
Important Considerations
- The qualifying period for the payment is critical. If you’re newly applying for benefits, be aware that you must be eligible during the specific eligibility window to receive this payment.
- This is a non-taxable one-off payment. It won’t count as income and won’t affect your existing benefit entitlements.
Q1: When will the £300 payment arrive?
A: Between 12 and 28 June 2025, directly to your bank
Q2: Do I need to apply for the payment?
A: No. If you’re eligible, the payment is automatic.
Q3: Who is eligible for the £300?
A: Those receiving Universal Credit, Pension Credit, Tax Credits, or other income-based benefits
