The UK government has announced a £250 Cost of Living Credit to help people struggling with rising prices. This one-time payment, set for July 2025, aims to support low-income households, pensioners, and those on certain benefits. With food, energy bills, and other costs still high, this cash boost will offer relief to millions. The payment is part of the Household Support Fund, which has been extended to March 2026 to help those most in need. Here’s what you need to know about who qualifies and when the money will arrive.
Who Can Get the Payment?
The £250 credit is for people already receiving specific benefits. You don’t need to apply if you’re on one of these, as the money will come automatically. Those who qualify include people on Universal Credit, Pension Credit, Income Support, income-based Jobseeker’s Allowance, or income-related Employment and Support Allowance. If you get Child Tax Credit or Working Tax Credit from HMRC, you might also be eligible, but only if you’re not already getting a benefit from the Department for Work and Pensions (DWP). The payment is tax-free and won’t affect your other benefits.
| Qualifying Benefits | Administered By |
|---|---|
| Universal Credit, Income Support, JSA, ESA, Pension Credit | DWP |
| Child Tax Credit, Working Tax Credit | HMRC |
When Will the Payment Arrive?
The government plans to send out payments between 7 July and 25 July 2025. The exact date depends on which benefit you receive and when your National Insurance number is processed. For most, the money will land in the same bank account used for your benefits. Look for a payment labelled “DWP COL” or “HMRC COLP” on your bank statement. If you don’t have a bank account, you might get a voucher instead, which you can use at places like the Post Office.
| Payment Dates | Benefit Type |
|---|---|
| 7-18 July 2025 | Universal Credit, Income Support, JSA, ESA |
| 21-25 July 2025 | Pension Credit, Tax Credits |
How to Check If You Qualify
To be eligible, you need to have been receiving one of the listed benefits between 1 May and 30 June 2025. You can check your status by logging into your Universal Credit or HMRC account online. If you think you should get the payment but don’t see it by the end of July, contact the DWP or HMRC through the official gov.uk website. Make sure your bank details are up to date to avoid delays. Some people, like those whose benefits were stopped or reduced to £0 during this period, might not qualify.
Extra Help for Those in Need
If you’re not on benefits but still struggling, you might be able to apply for help through your local council. Each council runs its own scheme, so check their website or call them to find out what’s available. You may need to show proof of low income or savings below £2,000. The £250 payment is just one part of the government’s plan. Other support includes the Warm Home Discount for energy bills and Council Tax reductions for low-income households.
Why This Matters
This £250 credit is a lifeline for many, helping to cover essentials like food, rent, or heating. For someone like Sarah, a single mum from Leeds, it could mean buying school supplies or paying an overdue bill. The government says this payment shows their commitment to supporting people during tough times. With inflation still a challenge, this cash boost, along with other schemes, aims to ease the pressure on UK households. Keep an eye on gov.uk for updates, and beware of scams asking you to apply or share personal details.