In 2025, many UK households are still feeling the impact of rising prices, high energy bills, and increased cost of living. To ease this financial pressure, the UK government has announced another round of financial support — a second £300 Cost of Living Payment. This payment is part of a larger package that was introduced to help low-income individuals and families manage their daily expenses.
Let’s break down the key details about this payment, including who qualifies, when it’s expected to be paid, and how to check if you’re eligible.
What is the £300 Cost of Living Payment?
This payment is not a new benefit, but an additional support payment offered to eligible claimants of certain benefits. It’s one of the three payments that were announced under the 2023–24 Cost of Living support package, with the other two being £301 and £299, adding up to a total of £900 across the year.
The second payment of £300 is now confirmed, and it will be automatically sent to eligible recipients who meet the criteria during the qualifying period.
When Will the £300 Payment Be Made?
While the government hasn’t given an exact date, it’s expected that the second £300 payment will be issued in June or early July 2025.
In the past, such payments have been rolled out over a few weeks to ensure that everyone receives it directly into their bank accounts. Just like before, payments will be staggered depending on the benefit type and whether it’s paid through DWP (Department for Work and Pensions) or HMRC (His Majesty’s Revenue and Customs).
Who Will Get the £300 Payment?
To get the £300 Cost of Living Payment, you must be receiving one of the following benefits during the qualifying period:
- 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
It’s important to note that contribution-based benefits like New Style ESA or JSA do not count towards this payment. The benefit must be means-tested, meaning it is based on your income level.
What Is the Qualifying Period?
To receive the £300 payment, you must have been entitled to receive one of the above benefits during a specific time frame — called the qualifying period.
Although the exact dates for this period haven’t been officially announced yet, they’re usually set about one month before the payment month. So, for a June 2025 payment, you would likely need to have been eligible for a qualifying benefit sometime in April or May 2025.
Do You Need to Apply for the Payment?
No application is needed.
If you are eligible, the payment will be sent automatically to the same bank account where you receive your benefit. The government has designed this to be a hassle-free process, so there is no need to fill out any extra forms or apply separately.
If you do not receive the payment but believe you are eligible, the DWP or HMRC will open a dispute window after the payment dates, where you can raise your concerns.
How Will the Payment Show in My Bank Account?
The £300 payment will appear with a reference that makes it easy to identify. For example, DWP payments may show something like “DWP COL”, and HMRC may use a reference such as “HMRC COLS”. This helps you confirm that the money received is indeed the Cost of Living Payment.
What If You Only Recently Started Receiving Benefits?
If you started receiving a qualifying benefit after the qualifying period, unfortunately, you will not get the £300 payment. You would need to have been entitled to benefits during the qualifying dates.
However, keep an eye out — if the government announces another round of Cost of Living payments later in the year, and you qualify then, you might still receive future payments.
Final Words
This £300 payment is a welcome relief for millions of people across the UK. With ongoing financial challenges, it’s important to stay updated on what support is available and whether you qualify.
If you’re unsure about your eligibility or need help, you can always visit the official gov.uk website or contact your local Jobcentre or benefits office.