In 2025, the UK government is delivering extra cost of living support to help vulnerable households manage soaring prices. As inflation remains high and essential goods become less affordable, the Department for Work and Pensions (DWP) has authorised another round of financial relief for those most in need.
This extra cost of living payment in 2025 will supplement the previously announced £200 and £300 support payments and is expected to benefit millions of residents on low or fixed incomes. Here’s what you need to know about the eligibility, amount, and exact payment process.
Why Is an Extra Payment Being Issued in 2025?
The government has acknowledged that earlier cost of living payments have not fully addressed the continued financial strain many UK households face in 2025. This includes the impact of:
-
Increased energy tariffs
-
Higher food and housing costs
-
Transportation and healthcare expenses
To bridge the gap and protect the most vulnerable, an additional payment was added to the DWP’s 2025 cost of living support plan.
This is not a replacement for the other scheduled payments (such as the £300 second payment), but rather an extra installment targeted at those still struggling.
Who Will Receive the Extra Cost of Living Payment?
The eligibility for this additional 2025 payment aligns closely with other means-tested support schemes. You may qualify if you receive any of the following:
-
Universal Credit (standard or legacy)
-
Income Support
-
Pension Credit
-
Income-based Jobseeker’s Allowance (JSA)
-
Income-related Employment and Support Allowance (ESA)
-
Working Tax Credit
-
Child Tax Credit
Recipients must have had a valid claim for one of these benefits during the official qualifying dates, which will be announced by DWP. There is no application process; eligible individuals will be paid automatically.
How Much Is the Extra Cost of Living Payment?
The amount for this extra cost of living payment has been confirmed to be £200, though certain households receiving multiple benefits may receive up to £256, depending on overlaps with other support packages.
This extra amount is in addition to the previously announced cost of living payments in 2025 and is part of a cumulative benefits strategy to provide up to £1,000 per year in total support for qualifying individuals.
When Will the Extra Payment Be Made?
The payment is expected to be made between September and October 2025, following the completion of the second £300 cost of living payment.
Exact payment dates will be announced by DWP closer to the rollout, but key details include:
-
No action required by recipients to receive the money
-
Payment is deposited directly into your bank account
-
Will appear with a reference like “DWP COL EXTRA”
Rollouts are typically staggered, depending on benefit type and whether your payments are handled by DWP or HMRC.
How to Confirm and Track Your Payment
To avoid missing out or misunderstanding your payment status:
-
Log into your Universal Credit or HMRC account to check for messages
-
Review your benefit entitlement dates
-
Monitor your bank for the DWP COL EXTRA reference code
If your account details have changed, or you recently updated your information, ensure DWP has the correct banking records.
Who Is Not Eligible?
You are unlikely to qualify for this payment if:
-
You do not receive any of the listed benefits
-
Your benefits are contribution-based only (not income-based)
-
Your claim is suspended or under investigation
-
You failed to meet eligibility during the specified qualifying period
If your circumstances change or you believe you were wrongly excluded, you may appeal or contact the relevant benefit office.
FAQs
What is the extra cost of living payment for 2025?
It is an additional government payment of £200–£256 for low-income households in response to ongoing financial pressures in the UK.
Who qualifies for the extra payment?
Anyone receiving Universal Credit, Income Support, Pension Credit, income-based JSA or ESA, or Tax Credits during the qualifying period will likely be eligible.
When will the extra cost of living payment be made?
The payment is expected to be deposited between September and October 2025, following the £300 cost of living payment.
How will the payment be made?
The money will be deposited directly into your bank account with a reference code like “DWP COL EXTRA”—you do not need to apply.
Can I receive this payment if I already got the £200 or £300 payments?
Yes, this extra payment is separate and meant to supplement previous 2025 cost of living payments.
Click here to know more.