DWP to Make One-Off Payments to Millions: The UK government is stepping up once again in 2025 to support millions of people feeling the pinch from rising costs. The Department for Work and Pensions (DWP) has confirmed a £300 one-off Cost of Living Payment that will be deposited directly into the bank accounts of eligible individuals starting mid-July 2025. This targeted support is part of the government’s continued effort to help low-income households who are most affected by inflation, high energy bills, and increasing rent and food prices. The payment is non-taxable, non-repayable, and will not affect existing benefits or income thresholds.
DWP to Make One-Off Payments to Millions
The £300 Cost of Living Payment from the DWP is an important part of the UK government’s commitment to helping low-income families navigate today’s tough economic climate. Automatically paid and non-taxable, it provides a timely financial boost during a period when every penny truly counts. If you receive Universal Credit, Pension Credit, or other qualifying benefits and were eligible between June 5 and June 25, this money is for you. But even if you don’t qualify, multiple support options—from council grants to heating discounts—are still available to ensure no one is left behind.
| Detail | Info |
|---|---|
| Payment Amount | £300 (tax-free, non-repayable) |
| Payment Window | Mid-July 2025 – most will receive by the end of July |
| Eligibility Criteria | Must be receiving qualifying benefits between June 5–June 25, 2025 |
| Qualifying Benefits | Universal Credit, Income-based ESA or JSA, Pension Credit, Income Support, Tax Credits |
| Application Required? | No – payment is automatic |
| Bank Reference | “DWP COL” or “HMRC COL” |
| Official Info | Gov.uk guidance on Cost of Living Payments |
What Is the £300 Cost of Living Payment?
The £300 Cost of Living Payment is a one-time support measure for individuals and families who rely on means-tested benefits. This includes those receiving income-related Jobseeker’s Allowance (JSA), Universal Credit, Employment and Support Allowance (ESA), Pension Credit, and Tax Credits.
Unlike Universal Credit’s monthly payments or energy subsidies tied to fuel usage, this £300 payment comes in a lump sum, giving households more flexibility in how they spend it. Whether that means catching up on late bills, paying for school supplies, or just buying groceries, the money is intended to be immediate help in tough times.
The payment is part of a multi-phase support package aimed at mitigating the impact of rising inflation and supporting financial stability for the UK’s most vulnerable citizens.
Who Is Eligible for the £300 DWP Payment?
You are eligible to receive this payment if you received any of the following means-tested benefits between June 5 and June 25, 2025:
Qualifying benefits include:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
You will NOT be eligible if you only receive:
- New-style ESA
- New-style JSA
- Contribution-based benefits
- Housing Benefit (on its own)
If you received both Universal Credit and one of the tax credits, you will receive the payment only once.
Example:
Emma, a single mother from Leeds, receives Universal Credit and Working Tax Credit. Since she qualifies under Universal Credit and was receiving it during the June 5–25 window, she will automatically receive the £300 payment once – not two separate payments.
When Will the £300 Be Paid?
Most people will receive the payment between July 15 and July 31, 2025. However, those receiving only Tax Credits might see the money arrive slightly later via HMRC instead of DWP.
What to look for:
The payment will appear in your bank statement with a reference such as “DWP COL” or “HMRC COL”, depending on which benefit agency issued it.
If you haven’t received the money by August 5, you are advised to contact the DWP or HMRC directly. Have your National Insurance number and benefit details ready to speed up the process.
Why the Payment Is Important in 2025?
The UK continues to experience economic challenges stemming from post-pandemic recovery, energy market instability, and global inflation. Food prices rose by nearly 19% year-over-year in 2024, and many households are still behind on utility bills or rent.
According to the Office for National Statistics (ONS):
- 53% of adults reported spending more on food, rent, or energy than the previous year.
- Nearly 25% of households with children said they were skipping meals or cutting portion sizes due to affordability.
- Fuel poverty continues to impact more than 3 million households, particularly in rural and colder areas.
This Cost of Living Payment is part of a suite of support options designed to help people survive—and ideally stabilize—during this ongoing financial crisis.
Step-by-Step Guide to Confirming Eligibility for DWP to Make One-Off Payments to Millions
Even though the £300 payment is automatic, it’s still important to confirm that you’re eligible and know what to expect.
Step 1: Identify your benefit type
Check your benefit paperwork or Universal Credit portal to verify what you were receiving during the period between June 5 and June 25, 2025.
Step 2: Monitor your bank account
Set a reminder to check your bank statements in mid to late July. Look for a deposit from DWP or HMRC with a clear reference to the Cost of Living Payment.
Step 3: Take action if it’s missing
If nothing arrives by August 5, visit gov.uk/contact-jobcentre-plus to get help. You’ll need:
- Your National Insurance number
- Date of your last benefit payment
- Bank account details
Step 4: Be aware of fraud
Scammers may try to impersonate DWP or HMRC. Do not share your bank info over text or email—official payments are automatic and do not require you to click links.
Additional Help: What If You Don’t Qualify?
Even if you don’t qualify for this particular payment, several other support schemes are still available across the UK:
1. Household Support Fund (HSF)
Managed by local councils, this fund helps with:
- Utility bills
- Emergency food
- Clothing or school essentials
2. Warm Home Discount Scheme
- Offers a £150 discount on energy bills
- Automatically applied if you’re eligible for Pension Credit or receive certain benefits
3. Winter Fuel Payment
- For people born before 25 September 1958
- Between £250 and £600, depending on your age and living situation
4. Charitable Grants and Food Banks
- Organizations like Turn2Us and Citizens Advice can help you access grants
- Food banks remain a critical safety net for families in need
Real Stories: Why This Payment Matters
“I’m on ESA and have a child with a disability. The £300 gave me breathing space. I used it for school supplies, winter clothes, and a bit of peace of mind for once.”
— David S., Birmingham
“As someone in their 70s relying on Pension Credit, I appreciate that this money doesn’t affect my other benefits. I put some of it aside for heating bills coming up.”
— Margaret H., Kent
Stories like these underline how vital these support schemes are—not just financially, but emotionally too.
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What You Should Do Now
- Check if you were receiving qualifying benefits during June 5–25
- Watch your bank account between July 15–31 for the DWP or HMRC payment
- Apply for other local or national support if you’re still in financial difficulty
- Share this article with friends, family, and community members who might benefit
