As everyday prices continue to rise, the UK government is stepping in with additional financial support for low-income households. A one-time payment is being issued in June 2025 to ease the burden of rising bills, food costs, and general inflation. Many people relying on government help are now set to receive a welcome payment directly into their bank accounts.
The £250 Cost of Living Credit will be automatically paid out to qualifying households who received certain benefits during a set eligibility window earlier this year. This one-off support does not affect any other benefits and aims to provide fast, no-hassle relief for struggling individuals and families.
£250 Cost of Living Credit
The £250 Cost of Living Credit is a non-taxable, automatic payment from the UK government for eligible claimants. It’s not a recurring benefit but a one-time payment issued as part of a larger cost of living response plan. Households receiving qualifying benefits between 15 January and 28 February 2025 will receive the payment between 20 and 30 June 2025.
This credit is designed to help with urgent costs like food, energy, and transport during a time when inflation is squeezing household budgets. It applies to a wide range of benefits and includes newly added support for people on disability-related payments.
Overview Table
| Feature | Details |
| Payment Amount | £250 |
| Payment Dates | Between 20–30 June 2025 |
| Application Required | No |
| Eligibility Period | 15 Jan – 28 Feb 2025 |
| Paid By | DWP (benefits) and HMRC (Tax Credits) |
| Covered Benefits | UC, JSA, ESA (income-based), Pension Credit, Tax Credits |
| Includes Disability Benefits | Yes – PIP, DLA, Attendance Allowance |
| Universal Credit Rule | £250 per household (not per individual) |
| Affects Other Benefits or Tax? | No |
Payment Timeline
The government will begin issuing the £250 Cost of Living Credit from 20 June through to 30 June 2025. This payment will be deposited directly into bank accounts of those who qualify. For most, it will appear on their statement as “DWP COL June” or “HMRC COL June,” depending on which agency manages their benefits.
There’s no need to apply or fill out any paperwork. If your bank details are up to date with your benefits provider, the money will arrive automatically.
Eligibility Requirement
To qualify for the £250 Cost of Living Credit, you must have received one of the listed benefits between 15 January and 28 February 2025. This ensures that only those who were actively receiving support during that time get the payment.
People who were not on benefits during this window, or who only receive contribution-based ESA or Carer’s Allowance without another qualifying benefit, won’t be eligible.
Accepted Benefits Include:
The payment covers a broad range of means-tested benefits. These include:
- Universal Credit (UC)
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
Being on any of these benefits during the eligibility period qualifies you for the one-time credit.
Newly Included Disability Benefits:
The government has expanded the coverage to include disability-related support. This means individuals receiving the following benefits may also be eligible:
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
This is important for those with long-term health issues who were previously excluded from similar schemes.
Example Scenario
To help explain how the credit works, here are a couple of practical examples:
Ravi and Aisha are a married couple on Universal Credit since late 2024. Because they were receiving UC during the eligibility period, they will get one £250 payment as a household.
Maya, who receives PIP for a disability, will also receive the payment. However, Jason, who only gets contribution-based ESA and no other benefits, will not qualify under the rules.
These examples show how important it is to have received the right benefits during the right time frame.
Final Thoughts
The £250 Cost of Living Credit offers a quick and much-needed cushion for families and individuals facing financial strain. While it won’t solve long-term budget issues, it gives direct support with no forms to fill out or long waits.
If you think you’re eligible, make sure your bank and benefit details are correct. You don’t need to take any action—just look out for the payment in late June. It’s a fast and simple way to get help when it’s most needed.
FAQs
Q1. When will the payment be made?
The payment will be sent between 20 and 30 June 2025.
Q2. Will the payment affect my other benefits or tax status?
No, it is separate, non-taxable, and will not affect any existing benefit entitlements.
Q3. I wasn’t on benefits during Jan–Feb 2025—can I still get it?
No. You must have been receiving an eligible benefit during that specific time period.
