As inflation and rising energy prices continue to pressure UK households, the Department for Work and Pensions (DWP) has begun disbursing £255 Cost of Living Vouchers in July 2025.
These targeted support payments replace the previous broad-based cost-of-living schemes and are now distributed through local councils and benefit-specific programs.
This article explains who qualifies, when you’ll get paid, and what you can do if you haven’t received your support.
What Are the DWP £255 Cost of Living Vouchers?
The £255 Cost of Living Vouchers are part of a redesigned support system aimed at low-income families, pensioners, and individuals with disabilities.
While nationwide payments like the £301 and £299 have ended, the government has transitioned to a targeted assistance model, primarily managed at the local authority level.
These vouchers are not uniform cash payouts, but include grocery vouchers, help with utility bills, council tax reductions, or direct bank transfers, depending on where you live and your circumstances.
Payment Timeline for 2025
| Period | Payment Phase | Estimated Amount |
|---|---|---|
| March – July 2025 | Phase 1 | £301 |
| July – August 2025 | Phase 2 (Voucher Stage) | Up to £200–£255 |
| October – December 2025 | Final Phase (Top-Up Support) | Additional £200–£500 |
While these payments are no longer centralized, many councils have already confirmed voucher disbursements for July 2025.
Household Support Fund (HSF) Extended
One of the key funding sources behind these vouchers is the Household Support Fund, which has been extended to March 31, 2026 with £742 million allocated to local councils across England.
Each council can decide:
- Who qualifies
- What type of support is given
- How to distribute vouchers
Examples of support include:
- Grocery vouchers
- Utility bill help
- School holiday meal schemes
- One-time payments for low-income families
Councils such as Doncaster and Leeds have confirmed food and energy vouchers for families with children during summer 2025.
Who’s Eligible for the £255 Vouchers?
You may qualify if you’re on one of the following income-related benefits during the qualifying period:
Qualifying DWP Benefits:
- Universal Credit
- Pension Credit
- Income-based JSA
- Income-related ESA
- Income Support
HMRC Tax Credits:
- Working Tax Credit
- Child Tax Credit
Additional Groups:
- Disabled individuals receiving:
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
- Carers
- Households using energy-dependent medical devices
Note: Many councils don’t require you to be on benefits to receive support if you’re a low-income household or facing financial hardship.
How to Receive the Vouchers
- No formal application is required for most recipients already on qualifying benefits.
- Payments and vouchers will be sent automatically or provided via council outreach.
- Check your council’s website or visit a Citizens Advice Bureau for eligibility updates and guidance.
- Ensure your contact and bank details are up to date with DWP or HMRC.
What Other Support Is Available?
- Summer top-up payments between £200–£300 for qualifying households.
- Lump sum awards for carers, pensioners, and disabled individuals.
- Universal Credit increases that took effect in April 2025.
- Continued migration of legacy benefits to Universal Credit, expected to be completed by January 2026.
The DWP £255 Cost of Living Vouchers are a lifeline for many UK residents still struggling with day-to-day costs.
Though the older national payment system has ended, this targeted support ensures help continues in a more tailored and need-specific format.
If you’re receiving benefits or facing financial hardship, check your council’s support page and monitor your account for updates.
FAQs
Do I need to apply for the £255 vouchers?
No, if you’re eligible through DWP benefits, you’ll receive it automatically. Some local councils may require an application, so check locally.
What will the payment reference look like?
Bank statements may show “DWP COL Voucher”, or you may receive physical vouchers or council credits depending on the type of aid.
Can I get support if I’m not on benefits?
Yes, many local councils offer assistance to low-income households even if they’re not receiving DWP benefits.