The Department for Work and Pensions (DWP) has officially confirmed a £299 Cost of Living Payment to be delivered to eligible UK households in June 2025.
This tax-free, one-off payment is aimed at helping low-income families, pensioners, and benefit claimants cover rising expenses like energy bills, food, and rent during the ongoing cost-of-living crisis.
Let’s break down who qualifies, when you’ll get the money, and what steps you need to take to ensure you receive the payment.
Why the £299 Payment Is Being Issued
With inflation still affecting household finances in 2025, the UK government is continuing its series of Cost of Living Support Payments that began in 2022.
This latest £299 payout is designed to help those already receiving certain means-tested benefits as inflation continues to put pressure on everyday costs.
Previous similar payments include:
- £300 payment in Autumn 2023
- £299 in Spring 2024
This year’s June installment ensures continued support for families facing high utility bills, food prices, and other essentials.
Who Is Eligible for the £299 Payment?
To be eligible, you must be receiving one of the following qualifying benefits during the eligibility period (likely in April or May 2025, exact dates to be confirmed):
Qualifying Benefits for the £299 Payment
Benefit | Eligibility Requirement |
---|---|
Universal Credit | Entitled during qualifying period |
Income-based Jobseeker’s Allowance | Joint claims with partner also qualify |
Pension Credit | Even minimal entitlement (e.g., £0.01) qualifies |
Income Support | Must be actively claiming during eligibility window |
Child Tax Credit | Paid via HMRC |
Working Tax Credit | Paid via HMRC |
Important Notes:
- You will not qualify if you only receive New Style JSA, New Style ESA, or contributory ESA.
- Joint benefit claims get only one £299 payment.
- If your payment was reduced to £0 due to a sanction, you may still qualify if you received a hardship payment.
When Will You Get the £299 Payment?
The £299 cash boost is scheduled to be distributed between June 10 and June 27, 2025. You will not need to apply—the payment will be automatic.
How it will appear on bank statements:
- If paid by DWP: “DWP COL” followed by your National Insurance number
- If paid by HMRC: “HMRC COLS”
Be sure your bank account and contact details are up-to-date with the DWP or HMRC to avoid delays.
What to Do Now to Prepare
- Verify your eligibility: Check your benefits online via GOV.UK.
- Update details: Ensure your bank and address details are correct with DWP/HMRC.
- Seek help if needed: Citizens Advice can help with benefit applications and advice.
Other Financial Support in 2025
Alongside this payment, other financial aid options are available:
- Winter Fuel Payments: £150–£300 for pensioners
- Warm Home Discount: Support for energy bills
- Household Support Fund: Distributed via local councils until March 2026
- Budgeting Advance Loans: For those on Universal Credit starting April 2025
These options can help stretch your household budget further this summer.
The £299 Cost of Living Payment in June 2025 provides crucial relief to millions of UK households navigating high expenses.
If you receive qualifying benefits, make sure your details are up to date to receive your automatic payout on time.
While the amount might not cover everything, it’s a meaningful boost when combined with other available assistance programs.
FAQs
Do I need to apply for the £299 payment?
No, if you’re eligible, the payment will be made automatically to your bank account.
What if I only get New Style ESA or JSA?
Unfortunately, these do not qualify for the £299 payment unless you also receive another qualifying benefit.
Will this payment affect my other benefits or taxes?
No, the £299 is non-taxable and does not affect your benefit entitlements. It’s a separate one-off support payment.