As the UK continues to navigate the ongoing economic challenges brought on by rising inflation and energy prices, the government is stepping in once again with fresh financial aid. A new £250 cost of living payment has been announced for August 2025, providing much-needed support to low-income individuals, pensioners, and families who receive specific benefits.
Here’s everything you need to know — from who qualifies, how it’s distributed, and when you can expect to receive it.
What Is the £250 Cost of Living Payment?
The £250 support payment is part of the UK government’s wider cost-of-living assistance scheme. It’s a one-time, non-taxable payment aimed at easing the burden on vulnerable households affected by the ongoing cost of food, rent, and energy bills.
Unlike loans or income-based credits, this is a direct support payout — no repayments are necessary, and it won’t affect your benefits or tax situation.
Who Is Eligible?
To receive the August 2025 payment, individuals must have been claiming at least one of the following benefits during the qualifying window (dates expected between 15 July – 10 August 2025):
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Child Tax Credit
- Working Tax Credit
Those on Tax Credits only (without other benefits) will also be included but might receive the payment slightly later via HMRC rather than the DWP.
If your benefit was paused during the qualifying period, or if you’re under review, you may still qualify — but the payment could be delayed pending assessment.
How Will It Be Paid?
The £250 payment will be issued automatically. If you’re eligible, it will be deposited directly into the bank account where you already receive your benefits.
You don’t need to apply.
The Department for Work and Pensions (DWP) and HMRC will handle the payment rollout, using existing benefit records. Depending on which agency handles your benefits:
- DWP recipients will see “DWP COL” in their bank statement
- HMRC (Tax Credits) recipients will see “HMRC COLS”
When Will the £250 Be Paid?
Here’s the expected payment timeline:
| Group | Payment Window |
|---|---|
| DWP benefit recipients | 20 August – 30 August 2025 |
| HMRC (Tax Credit only) users | 26 August – 5 September 2025 |
It may take a few days for the payment to appear in your account. If you haven’t received the payment by mid-September, you’ll be advised to contact DWP or HMRC for further assistance.
Will It Affect Other Payments?
No. The £250 is a separate, tax-free support payment. It won’t:
- Reduce your benefit entitlements
- Count as income for tax or other calculations
- Affect your eligibility for other government schemes like Housing Benefit, Disability Allowance, or Carer’s Allowance
How to Check If You’re Getting It
If you’re unsure whether you’re eligible, you can:
- Log into your Universal Credit or HMRC online account
- Check your benefit payment history
- Review the qualifying period to confirm receipt of relevant benefits
The DWP is expected to launch a “Check My Payment” tool again this year (as done in previous cycles) to help users verify their payment status.
What If You’re Missed Out?
If you believe you were eligible but haven’t received your payment:
- Wait until 10 September 2025
- Then contact DWP or HMRC to raise a payment enquiry
- Have your National Insurance Number, benefit details, and bank info ready for faster processing
Final Thoughts
This £250 August 2025 Cost of Living Payment is a vital financial boost for millions across the UK. With economic pressures still mounting, even modest support like this can help families pay for essentials and ease the impact of inflation.
If you currently receive qualifying benefits, you don’t need to do anything — just keep an eye on your bank account. For everyone else, stay updated through official government channels or visit GOV.UK to see if other forms of aid are available.