As the cost of living crisis continues to weigh heavily on households across the UK, the Department for Work and Pensions (DWP) is stepping in with another £300 Cost of Living Payment set to be rolled out in mid-July 2025.
This one-off payment is designed to provide essential financial relief for low-income households struggling with rising expenses, including energy bills, food, rent, and daily necessities.
This payment is part of the government’s broader cost of living support package introduced to ease the burden caused by persistent inflation and economic uncertainty.
Here’s everything you need to know about who qualifies, how the payment will be made, and what to do if you don’t receive it.
Who Qualifies for the £300 DWP Cost of Living Payment?
The £300 payment in July 2025 is targeted at individuals and families receiving means-tested benefits.
To be eligible, you must have been entitled to receive one of the following benefits during the qualifying period of 5 June 2025 to 25 June 2025:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
These criteria ensure that the payment goes directly to financially vulnerable individuals, offering immediate assistance where it is most needed.
What’s Driving the Cost of Living Pressure in the UK?
The UK’s cost of living in July 2025 continues to rise due to multiple contributing factors:
- Energy prices remain elevated due to global supply constraints.
- Rental costs have increased significantly in both urban and rural areas.
- Food inflation persists, particularly impacting low-income households.
- Transport and utility bills have also seen steady increases.
Despite signs of economic recovery, millions of households are still grappling with day-to-day affordability.
The £300 Cost of Living Payment is part of the government’s strategy to provide short-term relief during this critical period.
How and When Will the £300 Payment Be Made?
Eligible recipients will receive the £300 DWP payment automatically, with no application required. The funds will be deposited directly into the same account used for receiving your benefits.
Payment Overview:
| Detail | Information |
|---|---|
| Payment Amount | £300 |
| Payment Date | Mid-July 2025 |
| Eligibility Period | 5 June 2025 to 25 June 2025 |
| Payment Method | Direct deposit to benefits account |
| Issuing Authority | Department for Work and Pensions (DWP) |
| Application Required | No – payment is automatic |
This streamlined approach ensures no additional stress or paperwork for eligible households.
What If You Don’t Receive the Payment?
While most payments will be completed by the end of July 2025, delays can happen due to staggered disbursement schedules. If you believe you’re eligible but haven’t received your payment by that time:
- Wait a few additional days, as some payments may be processed later.
- Contact the DWP directly if the payment is still missing.
- Be prepared to provide your National Insurance number and details of your current benefits.
Why This Payment Matters
For many households, the £300 payment will serve as a critical financial buffer—helping cover food expenses, keep the lights on, and avoid falling behind on rent. It also demonstrates the government’s continued effort to provide support to low-income groups, even as inflation begins to stabilize.
This latest round follows earlier cost of living payments made over the past year and reflects a sustained response to ongoing economic challenges across the country.
The £300 Cost of Living Payment in July 2025 will bring much-needed relief to eligible UK residents navigating economic uncertainty.
With no application required and automatic disbursement, this support measure offers timely assistance to those who need it most. Stay informed and check your eligibility today.
FAQs
Will I need to apply for the £300 Cost of Living Payment?
No. If you’re eligible based on your benefits during the qualifying period (5 June 2025 to 25 June 2025), the payment will be made automatically to your usual bank account.
Can I receive this payment if I am only receiving Working Tax Credit or Child Tax Credit?
Yes, if you were entitled to Working Tax Credit or Child Tax Credit during the qualifying dates, you are eligible for the £300 payment.
What if my benefit was only approved after 25 June 2025?
If your benefit entitlement begins after the qualifying window, you will not receive the £300 payment in July 2025.