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In a continued effort to support vulnerable households amid high inflation, the Department for Work and Pensions (DWP) has officially confirmed the final Cost of Living Payment for 2025. Eligible claimants will receive £299 between 15 and 24 July 2025.
This third installment completes the government’s £900 support package for the year, aimed at helping low-income households offset soaring utility bills and food prices.
DWP £299 Cost of Living Payment – Key Details
The £299 payment will be automatically deposited into bank accounts of those who receive qualifying means-tested benefits. This includes individuals on:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit or Child Tax Credit (via HMRC)
Unlike previous rounds, this payout will not be staggered by region or benefit type, streamlining the process for all eligible recipients.
Cost of Living Payment 2025 Schedule
| Payment Round | Amount | Payout Window | Eligibility |
|---|---|---|---|
| First | £301 | January 2025 | Means-tested benefit claimants |
| Second | £300 | April 2025 | Same as above |
| Third | £299 | 15–24 July 2025 | UC, Pension Credit, ESA, JSA, Tax Credits recipients |
The £299 payment brings the total annual support to £900, helping millions cope with ongoing cost pressures.
Eligibility Criteria for July 2025 Payment
To qualify for the £299 July payment, you must have received a qualifying benefit during the assessment window: 13 May – 9 June 2025.
Important notes:
- If your benefit was awarded for any day within this window, you are eligible.
- Those on New Style JSA, contributory ESA, or New Style ESA alone are not eligible—unless they also receive a qualifying benefit.
- Tax credit-only recipients will receive the same amount but possibly a few days later than those on DWP-managed benefits.
How the Payment Will Be Made
There’s no need to apply for the payment. It will be automatically transferred to the bank account linked to your DWP or HMRC benefit.
- The payment reference will read “DWP COL” or “HMRC COL”, followed by your National Insurance number.
- You should check your online Universal Credit or tax credit portal for updates.
- If not received by 24 July, you may contact DWP or HMRC for clarification.
Why the Payment Matters Now
Rising living costs, especially for energy and food, continue to strain UK households. This £299 payment serves as a crucial buffer, especially for retirees, low-income families, and jobseekers.
While this is the final payment under the current scheme, future assistance programs may be introduced, depending on autumn 2025 budget announcements.
The £299 Cost of Living Payment for July 2025 is a key part of the UK government’s ongoing effort to ease financial stress for vulnerable residents.
With payments confirmed between 15–24 July, recipients are advised to ensure their benefit details are up to date and monitor their accounts. No application is required—funds will be automatically disbursed to all who qualify.
Stay informed, plan your finances wisely, and check your eligibility to make the most of this support.
FAQs
When will the £299 Cost of Living Payment be made?
The DWP will issue payments between 15 and 24 July 2025 to eligible recipients.
Who qualifies for the July 2025 payout?
Those on means-tested benefits such as Universal Credit, Pension Credit, and tax credits, during 13 May–9 June 2025.
Do I need to apply to receive the payment?
No. Payments are automatic for all eligible claimants. Ensure your benefit and bank details are current.