As the cost of living crisis continues to impact households across the UK, the Department for Work and Pensions (DWP) has confirmed that a £300 Cost of Living Payment will be issued in mid-July 2025.
This one-off payment is aimed at helping low-income households manage ongoing financial challenges related to energy bills, rent, food, and other essentials.
This measure is part of the government’s ongoing strategy to provide financial relief during a period of high inflation and economic pressure.
Below is a complete breakdown of who qualifies, how the payment will be made, and what to do if you don’t receive it.
Who Is Eligible for the £300 DWP Cost of Living Payment?
To receive the £300 payment in July 2025, you must have been entitled to receive at least one of the following means-tested benefits during the qualifying period between 5 June 2025 and 25 June 2025:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
This targeted approach ensures that the payment reaches those most financially vulnerable, offering immediate help when it is needed the most.
Why Is the £300 Payment Needed in July 2025?
The UK’s cost of living pressures remain high as of July 2025, driven by multiple factors:
- Energy prices are still elevated due to global supply disruptions.
- Rents continue to rise across both urban and rural regions.
- Grocery costs remain inflated, affecting family budgets.
- Utility and transport bills have also surged in recent months.
Despite marginal improvements in certain sectors, millions of households are still struggling with essential living costs. The £300 support payment is designed to act as a cushion during this critical period.
When and How Will the £300 Payment Be Made?
Eligible claimants will receive the £300 automatically without needing to apply. The DWP will transfer the funds directly into the same bank account where benefit payments are normally received.
Payment Summary
| Detail | Information |
|---|---|
| Payment Amount | £300 |
| Payment Date | Mid-July 2025 |
| Eligibility Period | 5 June 2025 to 25 June 2025 |
| Payment Method | Direct deposit to benefit accounts |
| Issuing Authority | Department for Work and Pensions (DWP) |
| Application Required | No – payment is automatic |
This automatic approach ensures no additional paperwork or effort is required for those already receiving eligible benefits.
What to Do If You Don’t Receive the Payment
Most payments are expected to be completed by the end of July 2025. However, if you think you qualify and haven’t received the payment:
- Wait a few extra days for potential processing delays.
- Contact the DWP after the end of July if the payment is still missing.
- Be ready to provide your National Insurance number and details of your benefits account for verification.
This ensures that eligible individuals can resolve any payment issues quickly and effectively.
Why the £300 Payment Matters for UK Families
This £300 Cost of Living Payment will help families and individuals:
- Pay off pressing utility bills
- Purchase necessary groceries and personal care items
- Avoid rent arrears or delays on essential monthly obligations
It also represents a continuation of the government’s efforts to assist low-income households in navigating economic hardships. Previous cost of living support programs have already offered significant relief, and this July 2025 installment will further strengthen that support.
The £300 Cost of Living Payment in July 2025 is a vital support for millions of UK residents battling inflation.
With automatic disbursement and clear eligibility criteria, this payment ensures timely financial relief for those most in need—offering real help when it matters most.
FAQs
Who is eligible for the £300 Cost of Living Payment in July 2025?
Those receiving means-tested benefits such as Universal Credit, Income Support, Pension Credit, or Tax Credits during the qualifying period.
When will the £300 payment be made?
The payment is scheduled for mid-July 2025, and most recipients will receive it by the end of the month.
Do I need to apply to get the payment?
No. If you’re eligible, the payment will be automatically deposited into your benefits account.