The £250 cost of living payment UK has officially been issued by the Department for Work and Pensions (DWP) in July 2025. This one-time financial support is part of the UK government’s ongoing initiative to help low-income individuals and families manage rising household costs, energy bills, and inflation.
Millions of eligible recipients have already received this payment directly into their bank accounts. The DWP has confirmed that this support is not taxable and does not affect any other benefits. Whether you’re receiving Universal Credit, Pension Credit, or other qualifying benefits, this COL payment offers timely relief without the need for any application.
Who Is Eligible for the £250 DWP Payment?
According to the latest DWP announcement, the £250 cost of living payment UK has been granted to individuals who met the eligibility criteria between May 12 and June 10, 2025. The qualifying benefits include:
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Universal Credit (UC)
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Pension Credit
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Income Support
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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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Working Tax Credit
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Child Tax Credit
The government has ensured that all those who were entitled to a qualifying benefit during the reference period are automatically eligible for this support. The DWP has already processed payments for over 7.6 million households under this category.
When Was the £250 Paid and How?
The £250 cost of living payment UK was deposited between July 10 and July 22, 2025. All payments were made directly to the same bank accounts where recipients receive their usual DWP or HMRC benefits.
There was no need to apply for this DWP support. Eligible individuals were notified via text messages or letters confirming the amount and deposit date. If you receive benefits from both DWP and HMRC, the payment was typically handled by DWP.
In case of delays, DWP provided a tracking tool on their official website to check payment status using your National Insurance Number.
Why the £250 Payment Was Introduced in July 2025
The £250 cost of living payment UK was introduced as a targeted measure to:
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Offset rising costs of groceries, gas, and electricity
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Support pensioners and low-income households
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Aid households with children during summer holidays
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Provide financial cushion during inflationary pressure
Unlike previous COL payments that were spread across installments, this July payment was issued as a lump sum, allowing families to use the funds more flexibly based on their personal needs.
Additional Support Available Alongside the £250 Payment
Those receiving the £250 cost of living payment UK may also be eligible for the following:
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Housing Benefit Top-Up: Based on local council discretion
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Energy Bills Discount Scheme: Automatically applied via suppliers
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Free School Meals & Vouchers: Extended for summer holidays in many councils
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Council Tax Reductions: For qualifying low-income households
These additional programs work in tandem with the COL payment to ensure vulnerable individuals are better supported during periods of financial hardship.
FAQs
Who received the £250 cost of living payment in July 2025?
Anyone who received a qualifying benefit like Universal Credit, Pension Credit, or Tax Credits between May 12 and June 10, 2025, was eligible.
How do I check if I received the £250 payment?
You can check your bank statement or log into your online DWP or HMRC account. The payment appears as “DWP COL” in most cases.
Is the £250 payment taxable or counted as income?
No, the £250 cost of living payment UK is completely tax-free and does not impact other benefits or income thresholds.
What should I do if I haven’t received the payment yet?
If you met the eligibility criteria and didn’t receive the payment by July 22, you should contact the DWP helpline or use their online tracking tool.
Will there be another cost of living payment this year?
As of now, no additional COL payment has been announced beyond July 2025. All official updates will come directly from DWP or HMRC.
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