In a welcome move to help struggling households cope with rising living costs, the UK government has confirmed a £300 cost-of-living support payment will be disbursed in July 2025. This payment forms part of an ongoing assistance package aimed at easing financial pressure on millions of eligible low-income families, pensioners, and benefit recipients.
Here’s everything you need to know — from who qualifies and how it’s paid, to when the money will hit your account.
What Is the £300 Support Payment?
The £300 cost-of-living payment is the latest installment in the UK government’s broader plan to help citizens cope with inflation, energy bills, and rising household expenses.
This support is not a loan, does not affect benefits or taxes, and is paid automatically to eligible individuals who are already receiving certain means-tested benefits.
Who Is Eligible for the £300 Payment?
You may qualify for the July 2025 support payment if you were receiving any of the following benefits during the qualifying period:
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
To be eligible, you must have received payment for one of these benefits between 12 June and 11 July 2025 (the qualifying window). If your benefits were paused or sanctioned during this period, you might still qualify — but eligibility may require review.
When Will the £300 Be Paid?
The UK Department for Work and Pensions (DWP) has confirmed the following payment schedule:
- Universal Credit, Pension Credit, ESA, JSA, and Income Support claimants:
Will begin receiving payments between 15 July and 25 July 2025. - Tax Credit recipients (via HMRC):
Payments will follow slightly later — expected between 24 July and 31 July 2025.
💡 All payments will be made directly into your bank account, with the reference marked as “DWP COL” or “HMRC COLS” depending on which department processes your benefits.
How Will You Receive the Payment?
You do not need to apply for this £300 payment. If you qualify, it will be automatically deposited into the bank account you use for benefits.
Here’s how it works:
- DWP-managed benefits (Universal Credit, Pension Credit, etc.): Payment from DWP
- Tax Credit-only claimants: Payment from HMRC
If your bank details have changed recently, ensure they are updated with DWP or HMRC to avoid payment delays.
Does This Affect Other Benefits?
No. The £300 support payment is separate from your usual benefit payments and won’t reduce your entitlement to other welfare assistance, including:
- Housing Benefit
- Council Tax Reduction
- State Pension
- Attendance Allowance
- Carer’s Allowance
In addition, the payment is non-taxable, so you won’t need to report it as income or worry about any deductions.
What If You Don’t Receive It?
If you believe you’re eligible but haven’t received the payment by early August 2025, here’s what to do:
- Wait until 5 August 2025 – Payment processing may take a few days.
- Check with your bank – Ensure the funds weren’t deposited under a different transaction name.
- Contact DWP or HMRC – Use the designated helpline if your payment is missing.
A formal claim or correction request may be necessary if your eligibility status needs to be manually reviewed.
What Comes Next?
The £300 support is part of a larger multi-phase assistance programme. It may be followed by:
- Winter Fuel Payment boosts
- Cold Weather Payments
- Additional top-ups for disabled individuals or carers
Further announcements are expected later in 2025, depending on inflation trends and energy costs.
Final Thoughts
With prices still high and inflation affecting basic necessities, the £300 cost-of-living support arriving in July 2025 will provide meaningful help to millions of UK residents. If you or your family are receiving eligible benefits, check your payment history and bank details to make sure you’re set to receive it.
This government aid is a tax-free, no-strings-attached financial lifeline — make sure you don’t miss out.