To help millions of UK residents cope with growing financial pressure, the government has confirmed a new cost of living support payment of £650 for eligible households. The Department for Work and Pensions (DWP) will roll out this one-time payment throughout June 2025 as part of its continuing response to inflation and the soaring cost of essential items.
This relief package is one of several aimed at helping low-income families navigate the persistent rise in household expenses—particularly those related to groceries, energy bills, rent, and other basic necessities.
Table of Contents
Overview
Rising inflation and cost hikes have made it harder for UK households to manage essentials like food and energy. To help, the government is issuing a £650 tax-free payment to over 7 million low-income families in June 2025. Payments are automatic for eligible benefit claimants—no application needed.
Summary
| Category | Details |
|---|---|
| Support Amount | £650 per eligible household |
| Eligibility Window | Between 1 March and 31 May 2025 |
| Payment Start Date | 15 June 2025 |
| Final Payment Date | 30 June 2025 |
| Applies To | Means-tested benefit recipients |
| Application Required? | No – processed automatically |
| Bank Statement Label | “DWP COLP” + National Insurance number |
| Official Website | gov.uk |
Eligibility Criteria
To receive the £650 support payment, you must have been claiming one or more qualifying means-tested benefits during the eligibility window—between 1 March and 31 May 2025. These benefits must have been active during that period to ensure automatic processing.
You will qualify if you received any of the following:
- Universal Credit
- Pension Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit or Child Tax Credit (for those not on Universal Credit)
Households only receiving non-means-tested benefits—such as Disability Living Allowance (DLA) or State Pension—are not eligible for this specific payment. However, the government has indicated that other support schemes may be introduced later in the year for such groups.
Payment Timeline
The DWP began issuing payments on 15 June 2025, and all payments are expected to be completed by 30 June 2025. Funds are sent directly to the bank accounts of qualifying recipients and require no manual application.
Each payment will appear with the reference “DWP COLP” followed by your National Insurance number, making it easy to identify on your bank statement.
Distribution Timeline
| Date | Action |
|---|---|
| 15 June 2025 | First round of payments issued |
| 20 June 2025 | Over half of eligible recipients expected paid |
| 30 June 2025 | All remaining payments completed |
The DWP confirms that delays are rare, but anyone who doesn’t receive their payment by the end of June should contact them directly for further assistance.
What You Need to Remember
There are several important conditions to be aware of regarding the £650 cost of living payment:
- One payment per household – Even in joint benefit claims, only one payment is issued per household.
- Eligibility based on past benefit activity – Your benefits must have been active between 1 March and 31 May 2025.
- Automatic delivery – No forms or applications are required. If eligible, you’ll be paid automatically.
- Handled solely by DWP – Payments, queries, and updates are all managed by the Department for Work and Pensions.
Impact on UK Households
The £650 payment aims to provide short-term relief from the rising cost of everyday living. For many families, this grant can help cover essential expenses that might otherwise go unpaid.
With inflation still above the Bank of England’s 2% target and core expenses continuing to rise, this type of one-time financial support is intended to create a buffer that prevents households from falling into deeper financial hardship.
Final Thoughts
The £650 cost of living payment for June 2025 marks a significant financial boost for millions of UK households. While it may not solve all long-term issues, it’s a targeted solution designed to address immediate cost pressures on those with the lowest incomes.
By automating the payment process and tying eligibility to existing benefits, the government has ensured that support reaches those who need it most—quickly and efficiently. For those not eligible this time, the DWP has hinted at future schemes that may offer alternative aid.
FAQs
Q1: Who can receive the £650 cost of living payment?
A: Anyone receiving eligible means-tested benefits between 1 March and 31 May 2025.
Q2: Is there a need to apply for this payment?
A: No application is needed; payments are processed automatically.
Q3: Is the payment issued per individual or household?
A: It’s per household, not per person—even in joint benefit claims.
Q4: What if I haven’t received the payment by 30 June?
A: You should contact the DWP to resolve the issue and confirm eligibility.
