The UK government has confirmed that millions of households will receive a £256 cost of living cash boost in 2025. This new initiative includes a double payment that aims to ease the financial strain caused by rising inflation, utility bills, and essential living costs.
The payment falls under the DWP’s expanded support package and targets households receiving means-tested benefits. Here’s everything you need to know about the double £256 payment, how it will be distributed, and who qualifies.
What Is the £256 Cost of Living Cash Boost?
The £256 payment is part of a revised cost of living scheme introduced by the UK government for 2025. Unlike earlier single payouts, this boost comes in two installments of £128 each, amounting to a total of £256 for eligible recipients.
This double payment was introduced to:
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Provide more frequent relief to struggling households
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Help people manage month-to-month costs
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Address the gaps left by earlier one-off payments in 2024
This measure is especially important for individuals and families who are on fixed incomes or rely heavily on means-tested welfare benefits.
Who Will Get the Double £256 Payment?
The eligibility for this cash boost mirrors previous cost of living schemes. You may be entitled to the payment if you receive one of the following:
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Universal Credit
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Income Support
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Pension Credit
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Income-based JSA or ESA
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Working Tax Credit
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Child Tax Credit
To qualify, you must have received a payment for one of these benefits during the relevant assessment period, which will be confirmed by the DWP prior to disbursement.
Payment Schedule and Delivery Method
The £256 will be issued in two parts to help spread the support more evenly:
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First payment of £128: Expected around June or July 2025
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Second payment of £128: Expected by September 2025
The DWP will directly deposit both payments into the bank accounts of eligible individuals. Each payment will appear with references such as:
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“DWP COL BOOST 1” for the first payment
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“DWP COL BOOST 2” for the second payment
No application is required. If you’re eligible, the payment will be sent automatically using the existing details DWP or HMRC have on file.
How This Differs from Other 2025 Cost of Living Payments
While earlier 2025 payments like the £200 and £300 installments are still in effect, the £256 cash boost is unique in its structure and timing. Here’s how it stands out:
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Split format makes budgeting easier for many households
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It’s additional, not a replacement of other COL payments
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Some may receive it in combination with other grants, depending on eligibility
This means some individuals may receive up to £756 or more in total cost of living support over the year.
Key Considerations for Recipients
To ensure you don’t miss your payment:
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Keep your bank details updated with DWP or HMRC
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Check your online benefit account regularly for payment notices
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Contact your local Jobcentre or benefit office if your circumstances change
FAQs
What is the £256 cost of living cash boost in 2025?
It is a double financial payment split into two parts—£128 each—to help low-income UK households manage cost of living pressures.
Who qualifies for the £256 payment?
Anyone receiving income-related benefits like Universal Credit, Pension Credit, or Tax Credits during the qualifying period will likely qualify.
When will the £256 be paid?
The first £128 installment is expected in June or July 2025, and the second will follow around September 2025.
Is this payment separate from the £200 or £300 payments?
Yes, the £256 is an additional cost of living payment and does not replace the earlier £200 or £300 DWP support grants.
Will I need to apply for this cash boost?
No, eligible recipients will receive the payment automatically in their bank accounts—no separate application is needed.
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