In response to the continued cost-of-living challenges across the UK, the government has confirmed the rollout of a £250 Cost of Living Payment in June 2025. This one-time, tax-free payment aims to ease the financial burden for households most affected by inflation, high utility bills, and food costs.
Delivered directly into bank accounts, this payment is part of the government’s broader support strategy to assist low-income families, pensioners, and individuals receiving disability benefits. With payments starting from 8 June, now is the time to check if you’re eligible.
UK £250 Cost of Living Payment June 2025
The UK £250 Cost of Living Payment is a targeted measure designed to support those on a tight budget. Unlike many benefit schemes that require an application, this payment will be issued automatically to eligible individuals based on their benefit status during the qualifying period. The funds are provided through DWP and HMRC and aim to fill essential financial gaps without any extra effort from recipients.
This initiative follows previous cost-of-living payments but expands support to cover more vulnerable groups, including those receiving disability benefits for the first time under this kind of scheme.
Overview Table: Key Information on the £250 Payment
| Key Details | Information |
| Payment Amount | £250 (tax-free, one-time payment) |
| Distribution Window | 8 June – 28 June 2025 {expected} |
| How You’ll Be Paid | Direct deposit into your usual benefits account |
| Application Needed | No – payments are automatic |
| Bank Reference Identifiers | “DWP COL” or “HMRC COLP” |
| Qualifying Period | 15 Jan – 28 Feb 2025 |
| Departments Involved | No payments are automatic |
Why Is the Cost of Living Payment Important?
With inflation averaging 6.8% in 2024 and food inflation peaking above 10%, many UK residents continue to face tough financial decisions. Households with fixed or limited incomes, such as pensioners or people with disabilities, are especially vulnerable to these economic pressures.
The £250 Cost of Living Payment aims to ease that burden by:
- Providing short-term relief for essential expenses like food and heating
- Reducing reliance on debt for day-to-day spending
- Helping families and individuals maintain basic living standards
This support ensures that those most affected by the economic downturn receive help where it’s needed the most.
Key Details About the £250 Payment
Here’s a breakdown of how the payment will be delivered:
- Amount: £250, tax-free and not affecting other benefit entitlements
- Distribution Window: From 8 June to 28 June 2025
- How It’s Paid: Via direct deposit into the bank account linked to your existing benefits
- Bank Statement Reference:
- “DWP COL” if paid via the Department for Work and Pensions
- “HMRC COLP” if paid via HM Revenue and Customs
- “DWP COL” if paid via the Department for Work and Pensions
No application is needed—if you’re eligible, the money will appear in your account automatically during the payment window.
Who Is Eligible for the £250 Cost of Living Payment in April?
Eligibility is based on whether you were receiving one or more qualifying benefits during the assessment period between 15 January and 28 February 2025. You may qualify if you were receiving:
Income-Related Benefits:
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
Tax Credits:
- Working Tax Credit
- Child Tax Credit
Disability Benefits:
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
It’s important to note: Contribution-based JSA or ESA alone does not qualify unless you also receive an income-related benefit.
This expanded eligibility marks a key change from past cost-of-living payments, reflecting the additional expenses people with disabilities face.
When and How Will You Receive the Payment?
Automatic Payments Schedule:
- Start Date: 8 April 2025
- End Date: 28 April 2025
You do not need to apply or contact the government—if you’re eligible, the payment will automatically appear in your bank account. Check your bank statement for:
- “DWP COL” – for payments via the Department for Work and Pensions
- “HMRC COLP” – for those processed through HM Revenue and Customs
Keep in mind that payment dates may vary slightly depending on your benefit type or your bank’s processing time.
What If You Don’t Receive the Payment?
If you believe you should have received the payment but haven’t by 1 May 2025, take these steps:
- Confirm Eligibility
Log into your Universal Credit, Pension Credit, or HMRC account to confirm you were receiving qualifying benefits between 15 Jan and 28 Feb 2025. - Review Your Bank Statement
Look for references “DWP COL” or “HMRC COLP” during the payment window. - Update Personal Information
Make sure your banking details and contact information are up to date with DWP or HMRC. - Contact Support
If you meet the criteria but didn’t receive the payment, contact DWP or HMRC through the official gov.uk website.
Always keep a record of your conversations and emails in case you need to follow up.
How This Payment Supports UK Households
The UK £250 Cost of Living Payment is more than just temporary relief—it’s a crucial part of the government’s ongoing effort to support vulnerable communities. It helps in several ways:
- Reduces financial anxiety caused by everyday expenses
- Covers basic needs like rent, groceries, and energy bills
- Bridges the income gap for those living on pensions or disability benefits
- Works in combination with other support schemes such as Winter Fuel Payments and Council Tax Reductions
This payment is part of a broader financial safety net to help people manage the rising cost of living.
Conclusion
The UK £250 Cost of Living Payment scheduled for June 2025 is a timely intervention for millions of people navigating the ongoing cost-of-living crisis. With automatic payments rolling out between 8 and 28 June, eligible individuals won’t need to apply—they just need to check their bank accounts during that period.
