As inflation and living expenses remain high across the UK, the government is stepping in with another round of financial support. The Department for Work and Pensions (DWP) has confirmed that a £300 Cost of Living Payment will be issued automatically to eligible households in mid-July 2025.
This one-time payment is part of the government’s broader plan to ease economic stress for those receiving means-tested benefits, especially during a period of continued financial pressure.
Why This Payment Matters in July 2025
The cost of living in the UK is still rising sharply. Although there are signs of economic recovery, many families are struggling with daily expenses, including:
- High energy bills
- Rising food prices
- Increased housing and rental costs
- General inflation affecting transport, groceries, and essential services
The £300 DWP payment aims to help low-income households bridge shortfalls, giving families a boost to manage grocery bills, utility payments, and heating expenses during a challenging period.
Who Qualifies for the £300 DWP Payment?
To be eligible for the July 2025 Cost of Living Payment, you must have been receiving one of the following means-tested benefits between 5 June 2025 and 25 June 2025:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
If you were receiving any of these benefits during the qualifying period, you do not need to apply. The payment will be automatically issued by the DWP.
How and When Will the £300 Be Paid?
| Detail | Information |
|---|---|
| Payment Amount | £300 |
| Date of Disbursement | Mid-July 2025 |
| Payment Method | Direct deposit to your regular benefit account |
| Administered By | Department for Work and Pensions (DWP) |
| Application Required? | No – automatic for eligible recipients |
You do not need to fill out any form or take action if you qualify. The funds will be sent directly to the bank account where your usual benefits are deposited.
What to Do If You Don’t Receive Your £300 Payment
If you’re eligible but haven’t received your payment by the end of July 2025, here’s what to do:
- Wait a few days—the DWP often processes payments in batches
- Check your bank statement for a deposit from the DWP
- If the payment is still missing:
- Contact the DWP directly
- Provide your National Insurance number
- Share details about your benefits and payment history
This information helps DWP investigate and resolve your case promptly.
Will the £300 Payment Affect My Other Benefits or Taxes?
No. The £300 Cost of Living Payment is completely tax-free. It will not count as income, and it will not affect any other benefits or tax credits you’re currently receiving.
This includes:
- Universal Credit calculations
- Housing Benefit entitlements
- Child Benefit and Tax Credits
The payment is designed as supplemental support, and not to interfere with existing assistance.
Why the Cost of Living Support Is Still Needed
Even as inflation slows in some areas, millions of UK households remain vulnerable to the high cost of everyday living. With utility rates, grocery prices, and housing costs showing no signs of returning to pre-crisis levels, the government recognises the need for targeted, automatic payments.
The July 2025 DWP payment is part of a series of efforts aimed at keeping households afloat during an extended period of economic stress.
Are More Payments Coming After July 2025?
At the time of writing, no additional Cost of Living Payments have been officially announced for the remainder of 2025. However, the UK government is monitoring inflation trends and household data, and may announce further support if financial conditions remain tight.
Citizens are advised to stay updated via official DWP announcements or government portals.
How to Stay Informed and Prepare
To ensure you don’t miss this or future payments:
- Regularly check your benefit statements through your online account
- Update your banking and contact details with the DWP
- Monitor government announcements for future payment dates or eligibility changes
- Seek guidance from benefit advisors if your circumstances change
FAQs
Q1. Who will automatically receive the £300 DWP payment in July 2025?
Anyone receiving qualifying means-tested benefits between 5 and 25 June 2025 will receive the payment without applying.
Q2. Do I need to apply for the payment?
No, the payment is automatic if you meet the criteria. No application is required.
Q3. What if I don’t get the payment by the end of July?
Wait a few days, then contact the DWP with your National Insurance number and benefit details.
Q4. Will this payment affect my other benefits or tax status?
No, the payment is tax-free and does not count as income or affect your other benefits.
Q5. Are more cost of living payments planned in 2025?
Not yet. The government has not confirmed additional payments, but further announcements may follow based on economic conditions.