The Department for Work and Pensions (DWP) is rolling out new Cost of Living Payments for millions of households across the UK. These payments are designed to support low-income families and individuals who are struggling with rising costs due to inflation, energy bills, and food prices. If you’re unsure whether you qualify or when the payment will be made, here’s a full breakdown in simple terms.
What Is the DWP Cost of Living Payment?
The Cost of Living Payment is a tax-free support payment issued by the UK Government through the DWP. It aims to help eligible households cope with the rising cost of daily living, including groceries, rent, and utility bills.
The payments are being sent automatically to people who are already receiving certain qualifying benefits like Universal Credit, Pension Credit, or income-based Jobseeker’s Allowance (JSA).
Who Will Get the Payment?
Not everyone in the UK will receive this payment. It is targeted specifically at low-income households already receiving means-tested benefits. You may be eligible if you receive:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit or Working Tax Credit (for some payments via HMRC)
People who receive only New Style ESA, contributory ESA, or New Style JSA will not qualify unless they also receive one of the income-based benefits mentioned above.
How Much Is the Payment?
The total amount varies depending on the specific Cost of Living Payment round. In the current round, most eligible households are expected to receive a payment of £300, which is part of a wider package totaling up to £900 in payments across 2024-25.
This may be split into multiple installments, depending on your benefit type and when you became eligible.
When Will the Payments Be Made?
DWP has confirmed that the next round of payments will begin in late June 2025 and continue through early July. If you’re eligible and your benefits were in place during the qualifying period, you don’t need to apply – the payment will be sent automatically to your bank account, using the same method as your usual benefit payments.
Here’s a rough timeline:
- Late June 2025 – Payments begin for DWP recipients
- Early July 2025 – Payments begin for Tax Credit-only recipients (via HMRC)
Payment timelines may vary slightly depending on your benefit provider.
How Will You Receive the Money?
You will get the payment directly into your bank account. In your statement, it will appear with a reference that includes your National Insurance number and “DWP COL” or “HMRC COL.”
If you receive both DWP and HMRC benefits, you will usually get the payment from DWP.
What If You Don’t Get Paid?
If you believe you’re eligible but don’t receive the payment, wait a few days after the payment window ends before contacting DWP. There will be a short period allowed for reporting missing payments, and DWP will have a process in place for checking and reissuing if needed.
Why These Payments Matter
With inflation still impacting the cost of food, gas, and energy, these payments can offer some relief for families on tight budgets. The UK Government says it is committed to continuing this kind of support throughout 2025 for the most vulnerable sections of society.