The UK government has announced a £500 one-off Cost of Living Support payment set to be distributed in August 2025. This initiative is part of a continued effort to ease financial pressure on low-income families, benefit recipients, and vulnerable groups, as inflation and essential living costs remain elevated.
The payment will be delivered automatically to eligible households, with no application required. Below, we outline who qualifies, the expected payout schedule, and what recipients need to do to prepare.
Key Information at a Glance
| Detail | Description |
|---|---|
| Payment Amount | £500 (one-time payment) |
| Disbursement Date | August 2025 (exact dates to be confirmed) |
| Eligible Groups | Low-income households, benefit claimants |
| Administered By | Department for Work and Pensions (DWP) / HMRC |
| Application Required | No – payment will be processed automatically |
Who Is Eligible for the £500 Payment?
The £500 Cost of Living Support is intended for individuals and families who are already receiving means-tested government benefits during a specific qualifying period, which will be officially confirmed by the DWP.
Qualifying Benefits Include:
- 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 qualify, claimants must have been receiving at least one of these benefits during the designated eligibility window, likely between April and May 2025 (to be officially confirmed).
Payment Schedule: When Will the £500 Be Disbursed?
The government plans to start issuing payments from mid to late August 2025. While an official timetable is expected in the coming weeks, here’s the likely schedule based on previous rollouts:
| Estimated Timeline | Details |
|---|---|
| Qualifying Period | April–May 2025 (TBC) |
| Disbursement Begins | Around August 15–31, 2025 |
| Payment Method | Direct deposit via DWP or HMRC |
Those receiving only Tax Credits may receive their payments slightly later, as HMRC processes these separately from DWP disbursements.
How Will the Payment Be Made?
No action is required from eligible recipients. Payments will be made automatically to the bank account already linked to the qualifying benefit claim.
Important:
- Ensure your bank details with DWP or HMRC are accurate and up to date
- Link your Pay.UK or PayPal accounts cautiously, only via official government channels
- Beware of scams – the government will never ask for personal information via email, text, or calls regarding this payment
Frequently Asked Questions (FAQs)
Do I need to apply for the £500 payment?
No. The payment will be made automatically to all eligible individuals based on benefit records. No application is needed.
Will this payment affect my other benefits?
No. The £500 Cost of Living Support is non-taxable and will not impact your benefit entitlement or any calculations.
Is the payment taxable?
No. The payment is classified as a tax-free support grant and does not count as earned income.
What if I don’t receive my payment?
If you believe you’re eligible but haven’t received the £500 by the end of the payment window, you will be able to contact the DWP or HMRC to request a review.
Summary Table: Who Gets the £500 in August 2025?
| Criteria | Requirement |
|---|---|
| Benefit Status | Active claim of eligible benefit |
| Qualifying Period | April–May 2025 (estimated) |
| Bank Information | Must be updated with DWP or HMRC |
| Application Needed | No – processed automatically |
| Payment Window | August 2025 |
Final Note: Supporting UK Households Amid Ongoing Cost Pressures
The £500 Cost of Living Support payment is a key part of the government’s broader strategy to mitigate the impact of economic strain on lower-income communities. It reflects the ongoing effort to provide timely, targeted financial assistance as prices for energy, food, and essentials remain high.
To ensure smooth processing, claimants should review their benefit account details, monitor official government communications, and avoid third-party schemes or unofficial websites.
For more information and future updates, visit:
👉 www.gov.uk/guidance/cost-of-living-payment