Kelly
The £301 DWP Cost of Living Payments are returning in 2025 to support millions of UK households facing rising energy bills, food prices, and housing costs.
With updated eligibility rules and a new payment schedule, the government aims to target those most in need. If you’re unsure whether you qualify or when the money will arrive, this guide breaks it all down.
What Is the £301 DWP Cost of Living Payment?
The £301 cost of living payment is a one-off tax-free payment issued by the Department for Work and Pensions (DWP). It is part of a broader cost of living support initiative for individuals and families receiving means-tested benefits or working tax credits.
In 2025, the payment returns with updated guidelines and a three-part installment structure totaling approximately £900 by the end of the year.
£301 Payment Details at a Glance
| Aspect | Details |
|---|---|
| Payment Amount | £301 per installment (total ~£900 in 2025) |
| Number of Payments | 3 separate payments throughout the year |
| When Payments Happen | April–June, Aug–Sept, Nov–Dec 2025 |
| Application Required? | No – automatic if eligible |
| Bank Statement Label | “DWP COL” or “HMRC COL” |
Updated Eligibility Criteria for 2025
To qualify for the £301 cost of living payment, you must have received at least one of the following benefits during a specified qualifying period:
- Universal Credit (must have received a non-zero award)
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit or Child Tax Credit (in specific circumstances)
Who Will Not Qualify?
- Individuals receiving contribution-based JSA or ESA only
- Universal Credit claimants who received zero payments during the qualifying window
- Anyone not receiving one of the listed benefits during the qualifying periods
2025 Payment Schedule – When to Expect Each £301 Installment
The DWP plans to distribute the total cost of living support in three phases, each approximately £300:
| Installment | Estimated Payment Window | Amount |
|---|---|---|
| First | April – June 2025 | £301 |
| Second | August – September 2025 | ~£300 |
| Third | November – December 2025 | ~£300 |
The exact dates may vary depending on benefit cycles, but all payments will be automatic and credited to your existing benefit account.
How Will You Receive the Payment?
You do not need to apply for this support. Payments will be issued automatically if you are eligible during the qualifying window. The funds will appear on your bank statement with a label such as “DWP COL” or “HMRC COL”, depending on which department handles your benefits.
Make sure your banking details are correct in your benefit records to avoid delays.
What Can You Use the Payment For?
This unrestricted payment is meant to ease the financial burden and can be used toward any necessary expenses, including:
- Utility bills
- Groceries and food
- Rent or mortgage payments
- Medical and childcare costs
- Outstanding debts
It offers flexibility so households can prioritize spending based on their most urgent needs.
Additional 2025 Support Programs
In addition to the £301 payment, the UK government is continuing to provide other support schemes, including:
- £300 Winter Fuel Payment for older adults
- £150 Disability Cost of Living Payment for those on disability-related benefits
- Local council support through hardship funds, grants, and food programs
These programs aim to help a wider group of vulnerable residents during periods of economic pressure.
What to Do if You Don’t Receive the Payment
If you meet the eligibility criteria but do not receive the payment by the end of the specified window:
- Check your benefit history for the qualifying period
- Verify your bank account details on file with DWP or HMRC
- Contact the DWP using their official helpline or online reporting form for missing payments
The government has a system in place to trace and resolve any missed payments quickly.
The £301 Cost of Living Payment returning in 2025 offers critical support to households managing increased living costs. With three payments totaling around £900, the scheme is designed to reach those on means-tested benefits without requiring applications.
Ensure your benefit and banking details are current, and watch for deposits between April and December 2025. This support aims to provide real relief for those who need it most—automatically and reliably.
FAQs
Do I need to apply to receive the £301 payment?
No. If you are receiving eligible benefits within the correct time frame, the payment is automatic.
Can I receive the payment if my Universal Credit was reduced to zero?
No. Zero-amount Universal Credit awards do not qualify for the cost of living payment.
What should I do if I think I’m eligible but didn’t get the payment?
Check your benefit record and bank details. Then contact the DWP to report the missing payment through their support channels.