The UK government is issuing a new £250 cost of living payment in May 2025 to support millions of households struggling with rising prices. This payment is part of the ongoing support provided by the Department for Work and Pensions (DWP) and HMRC to cushion the financial impact of inflation, energy bills, and food costs.
If you’re on low income or receiving certain benefits, this May 2025 payout could automatically land in your account—without the need to apply. Here’s what we know so far about the eligibility, payment schedule, and what to expect from this mid-year cost of living support.
Who Will Get the £250 Cost of Living Payment?
The £250 payment will go to households who are receiving means-tested benefits. These include:
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Universal Credit
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Pension Credit
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Income-based Jobseeker’s Allowance (JSA)
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Income-related Employment and Support Allowance (ESA)
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Income Support
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Working Tax Credit
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Child Tax Credit
To be eligible, claimants must have received one of these benefits during a qualifying period in April or early May 2025. The exact dates will be confirmed by the DWP soon.
When Will the £250 Be Paid?
The £250 cost of living payment will begin rolling out in late May 2025, likely between the 20th and 31st of May, depending on the benefit type and the department issuing the payment.
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If you receive DWP benefits, expect your payment first.
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Those on HMRC-administered Tax Credits may receive the amount a few days later.
All payments will be made automatically, and will appear in your bank account with reference terms such as “DWP COL May” or “HMRC COL May”, depending on the issuing agency.
Why Is This Payment Important?
The government has introduced this mid-year boost to:
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Address persistent cost of living pressure during the summer period
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Offer additional relief beyond earlier payments like the £200 and £300 support
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Help vulnerable groups deal with housing costs, fuel bills, and food inflation
The timing in May 2025 is especially critical, as this is when many families face added pressure from increased utility bills, rental hikes, and school-related costs.
Will It Affect My Other Benefits?
No, the £250 cost of living payment is not counted as taxable income and will not affect your existing benefits. It is also:
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Not subject to the benefit cap
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Non-repayable — you will not have to return it under any condition
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Sent automatically — no separate claim is required
This makes it one of the most accessible and direct forms of financial assistance being offered this year.
What Should You Do to Prepare?
Although no application is needed, it’s important to:
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Ensure your bank details are current with DWP or HMRC
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Confirm your benefit claim is active
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Report any changes in circumstances (such as income or household size) that could affect eligibility
If your payment is delayed or missing, you can contact your Jobcentre Plus or the HMRC support line after June 7, 2025, if the amount hasn’t arrived by then.
FAQs
Who qualifies for the £250 cost of living payment in May 2025?
Anyone receiving a qualifying benefit such as Universal Credit, Income Support, or Tax Credits during the eligibility window will receive the payment.
When will the £250 be paid?
The DWP is expected to begin payments between May 20 and May 31, 2025, depending on your benefit type and issuing department.
Will I need to apply for this payment?
No. The payment will be issued automatically if you’re eligible—you do not need to apply.
Will this affect my other benefits or tax credits?
No, the £250 is non-taxable, will not impact any other benefits, and will not be deducted from other entitlements.
How will I know the payment has been made?
You’ll see a bank transaction labeled something like “DWP COL May” or “HMRC COL May”, depending on which agency paid you.
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