The UK government has officially confirmed that a £200 Cost of Living Payment will be made available once again in 2025. This one-off payment aims to help low-income and vulnerable households cope with the ongoing impact of rising food, energy, and housing costs.
As inflation continues to weigh on household budgets, this payment forms part of a broader support framework introduced during the pandemic and extended in recent years.
If you’re receiving means-tested benefits, you may qualify for this financial relief.
Who Is Eligible for the £200 Cost of Living Payment in 2025?
To receive the £200 support payment, individuals must have been receiving at least one qualifying means-tested benefit during the eligibility window from April 22 to May 12, 2025.
Qualifying benefits include:
- Universal Credit (UC)
- Income Support (IS)
- Pension Credit (PC)
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
People receiving only New Style ESA, JSA, or other contributory-only benefits are not eligible, unless also claiming one of the qualifying income-based benefits.
Importantly, no application is required—eligible recipients will be paid automatically.
When Will the £200 Payment Be Issued?
The Department for Work and Pensions (DWP) and HMRC have set clear timelines for disbursement.
| Category | Details |
|---|---|
| Payment Amount | £200 (one-off) |
| DWP Payment Dates | June 20 – 28, 2025 |
| HMRC Payment Dates | Early July 2025 (for Tax Credit recipients) |
| Qualifying Period | April 22 to May 12, 2025 |
| Application Needed? | No – payment is automatic |
| Bank Statement Reference | “DWP COL” or “HMRC COL” |
Payments will go directly to the bank account registered for your benefits or tax credits.
How Will You Receive the £200 Payment?
If you’re eligible, the £200 will be paid automatically to the same bank account you use for existing benefit payments. The transaction will appear on your statement as:
- “DWP COL” for DWP-related benefits
- “HMRC COL” for Tax Credit recipients
Recipients do not need to apply or contact DWP/HMRC unless the payment hasn’t arrived by early July. In that case, claims can be submitted until September 30, 2025.
Why This Matters for Low-Income Households
Though £200 may not fully offset high living costs, it offers timely help for families juggling expenses like:
- Energy bills
- Groceries
- Fuel and transport
- Rising rents
The Cost of Living Payment works alongside other financial assistance programs like the Warm Home Discount, Winter Fuel Payment, and Household Support Fund to provide a stronger safety net.
What to Do Now
Here’s how to make sure you’re ready:
- Check if you were receiving a qualifying benefit between April 22 and May 12, 2025
- Ensure your banking details are correct and updated with DWP or HMRC
- Monitor your bank account in late June and early July
- Contact DWP or HMRC only if payment is not received by July 15
The £200 Cost of Living Payment for 2025 is a much-needed financial lifeline for millions across the UK. As household budgets continue to be stretched, this one-off support is designed to help ease the burden on low-income families and vulnerable individuals.
If you meet the eligibility criteria, there’s no need to apply—just keep your records updated and check your bank statement for the DWP COL or HMRC COL entry.
Don’t forget: if you don’t receive the payment by early July, you can contact the appropriate agency before the September 30 deadline.
FAQs
Do I need to apply for the £200 Cost of Living Payment?
No. The payment is made automatically if you received a qualifying benefit during the eligibility window.
What if I only receive New Style ESA or JSA?
You are not eligible unless you also receive a qualifying income-based benefit.
How do I know if my payment was processed?
Check your bank account between June 20–28, 2025. The payment will show as “DWP COL” or “HMRC COL”.