The Department for Work and Pensions (DWP) has officially confirmed that the third and final Cost of Living Payment UK 2025 instalment will be issued in July. This payment aims to assist millions of low-income households across the country in coping with persistent inflation and rising expenses. As of July 2025, eligible recipients can expect to receive a £299 payment, with the distribution dates now set.
The payment forms part of the government’s broader cost of living support scheme, first rolled out in 2022. With utility prices still above pre-crisis levels and food costs climbing steadily, this financial support continues to be a vital lifeline for many.
Confirmed DWP Payout Date and Amount Details
According to the DWP, the £299 payment will begin rolling out from 15 July 2025, with most payments expected to reach bank accounts by 24 July 2025. The money will be paid automatically to those receiving qualifying benefits, which include Universal Credit, Pension Credit, Income-based JSA, Income-related ESA, and tax credits.
Unlike previous payments, this round will not be split or staggered by region or benefit type. Everyone eligible will receive the same amount in a single transaction, simplifying the process and reducing delays.
Breakdown of Cost of Living Payment Schedule 2025
| Payment Round | Amount | Payout Window | Eligibility Criteria |
|---|---|---|---|
| First | £301 | Jan 2025 | Means-tested benefit claimants |
| Second | £300 | April 2025 | As above |
| Third | £299 | 15-24 July 2025 | Claimants of Universal Credit, ESA, JSA, Pension Credit, etc. |
This final payment completes the 2025 cost of living support scheme, bringing the total assistance to £900 per eligible claimant this year.
Who Is Eligible for the July 2025 Payment?
Eligibility is based on receiving one of the qualifying benefits during a specific assessment window, which the DWP has confirmed as 13 May to 9 June 2025. To qualify, your benefit claim must have been active during this period, or you must have received a payment for any day in that range.
People only on New Style ESA, contributory ESA, or New Style JSA are not eligible unless they also receive one of the means-tested benefits. Tax credit claimants will also receive the payment but may get it slightly later if not receiving DWP benefits.
How the Payment Will Be Made
There is no need to apply. The DWP and HMRC will issue the payments directly to bank accounts used for regular benefit payments. Any deviation or delay should be monitored via your online account or the DWP helpline. The payment reference will typically include the recipient’s National Insurance number followed by “DWP COL” or “HMRC COL.”
This system helps reduce fraud and ensures transparency in tracking the distribution of public funds.
Final Thoughts on the Cost of Living Payment UK 2025
As July unfolds, the £299 cost of living payment offers timely support for households feeling the pinch of persistent inflation. While this marks the final payment under the current scheme, the DWP has not ruled out further support for 2026, pending autumn budget decisions. For now, recipients are encouraged to stay informed, double-check eligibility, and use the funds wisely.
FAQs
What is the Cost of Living Payment UK 2025?
The Cost of Living Payment UK 2025 is a government-funded financial support initiative targeting low-income individuals receiving specific benefits.
When will the July 2025 payment be made?
The payment will be distributed between 15 and 24 July 2025, according to DWP guidelines.
How much will I receive?
Eligible claimants will receive a single payment of £299.
Do I need to apply for the cost of living payment?
No application is needed. The DWP or HMRC will pay eligible recipients automatically.
Can I receive the payment if I only get tax credits?
Yes, if you receive working or child tax credits and meet the eligibility window, you will receive the payment, although possibly after the main DWP rollout.
What if I haven’t received my payment?
If the payment hasn’t arrived by 24 July 2025, contact the DWP or check your online benefit portal for updates.
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