In a significant move to ease the pressure on struggling UK households, the Department for Work and Pensions (DWP) has confirmed the rollout of the £300 Cost of Living Payment in July 2025. This one-off financial assistance targets low-income families receiving means-tested benefits, providing timely support amid ongoing high energy bills, rent, and everyday expenses.
With no application needed, eligible recipients will automatically receive the payment through their existing benefit channels. This government-backed initiative is part of a broader strategy to cushion the financial strain caused by inflation and rising household costs.
£300 Cost of Living Payment
The £300 payment is a government-funded one-off sum to help households receiving certain means-tested benefits cope with essential costs such as food, energy, rent, and other necessary expenses. Those who were receiving qualifying benefits during the June 5–25, 2025 eligibility window will automatically receive this payment, with no need to apply.
This support comes during a period of high inflation and increased costs of living, with the aim of giving the most vulnerable citizens a financial cushion in summer 2025.
Overview
| Detail | Information |
|---|---|
| Payment Amount | £300 one-time payment |
| Disbursement Date | Mid to late July 2025 |
| Eligibility Period | Must have received benefits between June 5 and June 25, 2025 |
| Application Required? | No – paid automatically to qualifying households |
| Payment Method | Direct bank transfer to benefit account, or via local councils (vouchers) |
| Administered By | Department for Work and Pensions (DWP) |
Eligibility Criteria
To qualify for the July 2025 Cost of Living Payment, recipients must have been in receipt of one of the following means-tested benefits during the designated assessment period (June 5–25, 2025):
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit (WTC)
- Child Tax Credit (CTC)
Eligible individuals will receive the payment directly through their existing benefit accounts. If a payment is not received and eligibility is believed to be met, recipients can contact the DWP after the disbursement window closes.
Payment Distribution
Most payments will be made by mid-to-late July 2025, through automated transfers to the same bank accounts where regular benefits are paid. For certain local authorities, especially in England, the funds may be provided as shopping or energy vouchers rather than direct cash deposits.
Councils like Doncaster are using the Household Support Fund (which has been extended to March 2026) to offer varying payouts:
- £100 for one-child families
- £200 for two-child households
- Up to £300 for larger families
- £100 for energy support, even for families without children who qualify for other assistance like Housing Benefit or Council Tax Reduction
Application Needed
A key feature of this benefit is that no separate application is required. If you meet the eligibility criteria during the qualifying dates, the DWP will process your payment automatically.
The Household Support Fund continues to supplement this assistance, with councils granted the freedom to allocate extra funding based on local needs. However, the rules and amounts vary by council, so households are encouraged to check with their local authority for additional aid.
Why This Payment Matters to Families
With inflation still pinching household budgets, this £300 payment offers direct help for:
- Energy and utility bills
- Groceries and daily essentials
- Rent, mortgage payments, or council tax
- School-related expenses during the summer holidays
The DWP’s strategy focuses on speed and simplicity, delivering targeted support to the most financially vulnerable without burdening them with paperwork.
FAQs
1. When will I receive the £300 payment?
A = Most eligible recipients will receive the payment by the end of July 2025.
2. Do I need to apply for the payment?
A = No – the payment is automatic if you qualified during the eligibility window.
3. What if I didn’t receive the money but think I’m eligible?
A = You can report a missing payment to the DWP after the disbursement window ends.
