Starting mid-July 2025, millions of low-income households, pensioners, and disabled individuals across the UK will receive a £250 cost of living payment to help tackle rising inflation and economic pressure.
This one-off tax-free support will be issued automatically to those who received certain qualifying benefits earlier in the year.
Let’s break down the eligibility criteria, payment schedule, and what you need to do to ensure you get your payment on time.
What Is the £250 Cost of Living Payment?
The £250 payment is part of the UK government’s effort to relieve financial stress among vulnerable communities. It targets people who already receive means-tested benefits and disability-related support, helping cover costs for essentials like food, energy, rent, and medical care.
Unlike some other aid programs, no application is needed. If you meet the criteria, the payment will be sent automatically.
Key Payment Details
Here’s a summary of the most important information regarding the July 2025 £250 cost of living payment:
| Detail | Information |
|---|---|
| Payment Amount | £250 one-time payment |
| Payment Dates | Begins July 20, 2025, ends July 30, 2025 |
| Eligibility Period | Must have received qualifying benefits between 15 January – 28 February 2025 |
| Qualifying Benefits | Universal Credit, Pension Credit, ESA (income-based), JSA (income-based), Income Support, Tax Credits, PIP, DLA, Attendance Allowance |
| Eligible Groups | Low-income families, pensioners, disabled individuals |
| Application Required? | No, payment is automatic |
| Bank Statement Label | “DWP COL July” or “HMRC COL July” |
Who Qualifies for the July 2025 £250 Payment?
To receive the £250 support, you must have been receiving one or more of the following benefits between 15 January and 28 February 2025:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit or Child Tax Credit
- Disability Benefits – Including Personal Independence Payment (PIP), Disability Living Allowance (DLA), and Attendance Allowance
Note: Contribution-based ESA, Carer’s Allowance, and New Style JSA do not qualify on their own.
When Will You Get Paid?
The payments will be issued in phases, depending on which government department pays your main benefit:
- DWP Recipients (e.g., Universal Credit, ESA, JSA): Start receiving from 20 July 2025
- HMRC Recipients (e.g., Working/Child Tax Credit): Payments follow by 25 July 2025
- Final Payment Window Closes: By 30 July 2025
Check your bank account for a transaction labeled “DWP COL July” or “HMRC COL July” to confirm receipt.
How to Make Sure You Get Paid
Although the payment is automatic, here are steps to prevent missing out:
- Update your bank details with DWP or HMRC if they have changed.
- Verify your benefit status: You must have been eligible during the January–February 2025 window.
- Avoid confusion with ineligible benefits—make sure your main benefit is one of those listed.
- Joint Claims: Households with joint Universal Credit claims will receive one £250 payment, not two.
Other Financial Help Available
This £250 payment is part of a broader support package, which also includes:
- Energy Bill Discounts
- Council Tax Reductions
- Additional £450 one-time July aid (for specific hardship categories)
Check with your local authority or Gov.uk to explore more options.
The July 2025 £250 Cost of Living Payment is a vital boost for millions of struggling UK households. If you were receiving eligible benefits earlier this year, you don’t need to apply—just keep an eye on your bank account between 20 and 30 July.
The government’s initiative targets those hit hardest by inflation and rising costs, helping to restore a degree of financial stability in uncertain times.
FAQs
Can I get the £250 payment if I’m only on Carer’s Allowance?
No. Carer’s Allowance alone does not qualify. You must be receiving one of the approved means-tested or disability benefits.
Will I get the payment if my partner and I both receive Universal Credit?
No, joint households will receive one single £250 payment.
How will I know if I received the payment?
Check your bank statement for “DWP COL July” or “HMRC COL July” between 20–30 July 2025.