The UK government has announced a one-off £250 Cost of Living Payment scheduled for May 2025. This payment is intended to support households facing financial pressure due to rising living costs. It targets individuals on certain means-tested and disability-related benefits, as well as pensioners with limited income. The payment will be disbursed automatically to most eligible recipients.
UK £250 Cost of Living Payment Coming in May 2025
| Aspect | Details |
|---|---|
| Payment Amount | £250 (one-off, tax-free) |
| Disbursement Window | 6 May – 22 May 2025 |
| Eligibility Criteria | – Must be receiving qualifying benefits during 15 Jan – 28 Feb 2025 – Includes Universal Credit, Pension Credit, JSA (income-based), ESA (income-related), Tax Credits, PIP, DLA, Attendance Allowance |
| Application Process | – Automatic for most benefit recipients – Manual application possible via local councils for those not on qualifying benefits |
| Payment Method | Direct deposit to your registered bank account; reference label will include “DWP COL” or “HMRC COLP” |
| How to Check Eligibility | Check your benefit account online or contact your local authority |
Overview of the £250 Cost of Living Payment
The £250 Cost of Living Payment is part of the government’s ongoing response to inflation and cost-of-living challenges. It’s a targeted support measure to help the most financially vulnerable—those already receiving income-related benefits or suffering from disability-related expenses.
Who Qualifies for the Payment?
To be eligible, individuals must meet all of the following criteria:
-
Be a UK resident during the qualifying window (15 January – 28 February 2025)
-
Receive one or more of the following benefits:
-
Universal Credit
-
Pension Credit
-
Income-based Jobseeker’s Allowance (JSA)
-
Income-related Employment and Support Allowance (ESA)
-
Income Support
-
Working Tax Credit
-
Child Tax Credit
-
Personal Independence Payment (PIP)
-
Disability Living Allowance (DLA)
-
Attendance Allowance
-
You do not need to receive the full amount of these benefits—partial recipients still qualify, as long as the benefit was paid within the assessment period.
How the Payment Will Be Made
The payment will be sent between 6 May and 22 May 2025. Most will receive it via direct deposit to the same bank account used for benefit payments. The deposit will show a reference label such as “DWP COL” or “HMRC COLP” depending on the benefit source.
No need to apply if you are already receiving qualifying benefits. However, those not on the list but still in hardship may apply for support through their local council.
Manual Application (If Required)
If you are not receiving one of the qualifying benefits but still need financial help, some local councils will allow you to apply manually. You may need to provide:
-
Proof of low income
-
Household size and expenses
-
Bank details
-
Residency verification
This application process is handled at the discretion of individual local authorities.
Other Available Support
In addition to the £250 payment, other forms of assistance may be available:
-
Winter Fuel Payment: Up to £600 for pensioners during winter
-
Cold Weather Payment: £25 per week during periods of prolonged low temperatures
-
Warm Home Discount: £140 off electricity bills for low-income households
-
Council Tax Support: Local reductions for low-income or unemployed households
Check with your local council or benefit office to confirm what you may be entitled to.
How to Check Eligibility
You can confirm your eligibility by:
-
Reviewing benefit notifications
-
Logging into your benefit account online
-
Contacting your local council or DWP office
-
Checking if you were paid any of the listed benefits between 15 Jan and 28 Feb 2025
FAQs
1. Do I need to apply for the £250 payment?
No. If you’re receiving eligible benefits, the payment will be made automatically. Only those not on the listed benefits may need to apply via their local council.
2. What should I do if I don’t receive the payment?
If you qualify but don’t receive the payment by 22 May 2025, contact DWP or HMRC with your National Insurance number and benefit details.
3. I’ve just started receiving benefits. Will I get the payment?
You must have received benefits during the 15 January – 28 February 2025 assessment period. If you began receiving them after that, you won’t be eligible for this round.
4. Can I get more than one payment if I qualify for multiple benefits?
No. Even if you receive multiple qualifying benefits, you will only receive one £250 payment.
5. Will this affect my existing benefits?
No. This is a one-off, non-taxable payment and will not impact any other benefits or income assessments.
Click here to know more.