Rising living costs aren’t going away in 2025—but help is still coming. The Department for Work and Pensions (DWP) has announced a fresh round of Cost of Living Payments, offering up to £900 across the year to households receiving key benefits. Whether you’re on Universal Credit, Pension Credit, or Tax Credits, you could see three direct payments—plus a one-time local boost in June.
Let’s break it all down so you know how much you could get, when to expect it, and what steps to take to make sure you don’t miss out.
Overview
This year’s package includes three automatic payments: £301, £300, and £299. Together, they add up to £900. These payments are meant to help with everyday essentials—food, energy bills, school uniforms, and other must-haves.
Here’s a quick look:
| Feature | Details |
|---|---|
| Payment Amounts | £301, £300, £299 |
| Total Support | Up to £900 |
| Eligibility | Universal Credit, Pension Credit, Tax Credits, Income Support, etc. |
| Schedule | Spring, Summer, and Autumn 2025 |
| Application Needed | No – payments are automatic |
| Bonus Payment | £200 Household Support Boost (June 2025) |
| How It Appears in Bank | “DWP COL” or “HMRC COL” |
Importance
Despite some stability in inflation, everyday prices remain high. The cost of heating, food, and rent is still tough for many households. These payments aim to help families avoid falling into debt or going without basic needs.
Timeline
The £900 is split into three instalments:
- £301 – Spring 2025
- £300 – Summer 2025
- £299 – Autumn 2025
Exact dates will be confirmed closer to each period. As long as you’re eligible during the assessment period for each payment, the money will be sent directly to your bank—no forms, no hassle.
Eligibility
To qualify, you must receive one of the following during a set period before each payment (dates still to be confirmed):
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
Note: If you’re only receiving New Style ESA, New Style JSA, or other contribution-based benefits, you won’t qualify unless you also receive a means-tested benefit.
Extra Boost
In addition to the main payments, a one-off £200 Cost of Living Boost is being offered in June 2025. This will be managed by local councils under the Household Support Fund and is aimed at helping with:
- Utility bills
- Food and essential items
- Emergency rent or clothing costs
Some councils will send this automatically, but others may require an application. Check your local council’s website for updates.
What You Should Do
Even though the payments are automatic, there are a few things you can do to avoid missing out:
1. Keep Your Details Updated
Make sure the DWP or HMRC has your current:
- Bank account info
- Home address
- Contact information
- Household and income updates
Wrong details are the most common reason for delayed or missed payments.
2. Watch Your Bank Statement
Your payment will show up with a note like “DWP COL” or “HMRC COL.” It may not land exactly on the expected day, so give it a few extra days before raising concerns.
3. Watch for Scams
These payments are automatic. The DWP or HMRC will never call, text, or email asking for your bank details. If you get such a message, delete it—it’s a scam.
Real-Life Example
Meet Darren, a 42-year-old carer from Nottingham. He receives Universal Credit while caring for his mother. In 2024, he received all three Cost of Living Payments.
“I didn’t even know it was coming until it showed up in my bank,” he says. “It helped pay for Mum’s medication and kept the heating on during the coldest days.”
His top tip? “Keep your details up to date—that’s all you need to do.”
Other Help Available
These Cost of Living Payments aren’t the only support available. Depending on your situation, you may also qualify for:
- Winter Fuel Payment (for pensioners)
- Cold Weather Payment (for long cold spells)
- Warm Home Discount (£150 off energy bills)
- Free school meals or holiday clubs
- Crisis support from your local council
- Discretionary Housing Payments (for rent gaps)
If you’re struggling, it’s always worth checking with your local council or using the benefits calculator on GOV.UK.
These payments may not solve every problem—but they’re designed to help with life’s basics. A few hundred pounds at the right time can mean keeping the lights on, feeding your family, or avoiding debt. And in today’s world, that kind of help makes a big difference.
FAQs
How much is the total support in 2025?
Up to £900 through three payments.
Do I need to apply for the payments?
No, all payments are automatic if you’re eligible.
When will I receive the £301 payment?
It’s expected in Spring 2025—exact date TBC.
What does ‘DWP COL’ mean on my bank?
It means your Cost of Living payment has arrived.
Is the £200 June boost automatic?
In some areas yes; others may require an application.
