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As the cost of living continues to rise across the UK, the government is offering vital financial assistance in the form of a £650 cost of living payment.
This support is aimed at helping low-income households cope with rising costs for essentials, including energy bills, food, and rent.
Payment Overview
The £650 payment will be automatically credited to the bank accounts of eligible recipients between 15 and 30 June 2025.
This initiative ensures that financial help reaches those in need without any complicated application procedures.
If you are receiving means-tested benefits, you may be among the millions of households benefiting from this timely assistance.
Why This Payment Matters
In 2025, families across the UK are grappling with soaring prices for everyday essentials. Whether it’s the grocery bills, energy costs, or rising housing expenses, many households are feeling the squeeze.
The £650 payment is designed to offer direct relief—a lifeline for those struggling financially. With over 7 million households expected to qualify, this will be one of the largest cost of living payments in recent years.
Key Details at a Glance
| Aspect | Details |
|---|---|
| Payment Amount | £650 per eligible household |
| Eligibility Period | 1 March – 31 May 2025 |
| Payment Dates | Between 15 June – 30 June 2025 |
| Payment Label | “DWP COLP” + National Insurance Number |
| Application Needed | No – paid automatically to eligible recipients |
Eligibility for the £650 Payment
To qualify for the £650 payment, you must have received at least one of the following means-tested benefits during the period between 1 March and 31 May 2025:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
Who Is Not Eligible?
The £650 payment does not apply to individuals who only receive non-means-tested benefits, such as:
- State Pension
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
However, further support for these recipients may be introduced later in the year.
When Will Payments Be Made?
Here’s a quick timeline to help you track the payment schedule:
- 15 June 2025: First payments start being issued
- 20 June 2025: Over half of eligible households will receive their payments
- 30 June 2025: Final batch of payments completed
Payments will appear on your bank statement as “DWP COLP” followed by your National Insurance number.
No Application Required
One of the most convenient features of this support is that it will be processed automatically for eligible individuals. You won’t need to submit any forms or make phone calls unless:
- Your banking details have changed recently
- You suspect an error or haven’t received the payment by the end of June
What Can the £650 Payment Be Used For?
The £650 payment is unrestricted, allowing you to use it as needed. Most households are expected to spend it on:
- Energy and utility bills
- Groceries and essential supplies
- Rent or mortgage payments
- Childcare expenses
- Medical costs or health-related expenses
- Outstanding debts or arrears
Reports suggest that the payment is already reducing reliance on food banks and emergency grants.
Important Points to Remember
- Only one payment per household—even if multiple individuals are eligible.
- The payment is tax-free and won’t affect any other benefits you receive.
- The government will never ask for your bank details via phone, text, or email. Always remain cautious of potential scams.
- Ensure that your details are up-to-date with the DWP or HMRC.
What If You’re Not Eligible?
If you do not qualify for the £650 payment, there are still other support options available in 2025, including:
- Winter Energy Support payments
- Local hardship grants through councils
- Targeted aid for pensioners and disabled individuals
Stay updated by checking with your local council or government websites for new benefit announcements.
The £650 Cost of Living Payment arriving this June is a timely intervention for millions of households facing rising living costs. With no application required, this tax-free payment will automatically support those receiving means-tested benefits to help cover essential expenses.
If you’re eligible, expect the payment to show up in your account by 30 June 2025. For those not qualifying, keep an eye on future announcements, as additional aid schemes are expected later in the year.
FAQs
How will I know if I am eligible for the £650 payment?
If you receive any means-tested benefits between 1 March and 31 May 2025, you may be eligible for the £650 payment. Check with your DWP or HMRC for eligibility confirmation.
When will the £650 payment be paid?
The payment will be issued automatically between 15 June and 30 June 2025. It will appear on your bank statement as “DWP COLP” with your National Insurance number.
Can I use the £650 payment for anything specific?
The £650 payment is unrestricted and can be used for energy bills, groceries, rent, and other essential expenses, including childcare costs and medical expenses.