The Department for Work and Pensions (DWP) has officially confirmed a £301–£500 Cost of Living Boost for 2025. This payment will be distributed to eligible individuals in three instalments, helping families and low-income households manage increasing expenses due to inflation, energy bills, and other daily costs.
The total support amounts to £900, broken down into three separate payments made across the year.
Cost of Living Payment Schedule 2025
| Installment | Amount | Expected Payment Window |
|---|---|---|
| First Payment | £301 | Spring 2025 |
| Second Payment | £300 | Summer 2025 |
| Third Payment | £299 | Autumn 2025 |
Each payment will be made automatically to the bank accounts of qualifying recipients. There is no need to apply, provided you are receiving eligible benefits during the qualification period.
Who Qualifies for the £301–£500 Cost of Living Boost?
To receive one or more of the payments, you must be receiving at least one of the following benefits or tax credits during the qualifying periods:
- 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
Those who only receive New Style ESA, New Style JSA, or contribution-based benefits without a qualifying low-income benefit will not be eligible.
To ensure you’re included, keep your banking and contact details updated with the DWP or HMRC.
How Will the Payment Be Made?
The payments will be:
- Deposited automatically into the bank account where you receive your regular benefit.
- Clearly marked as Cost of Living Payment to avoid confusion.
- Tax-free and will not count as income for other benefits.
Even if your benefit is temporarily reduced to zero due to income, you could still qualify—provided the conditions are met during the assessment window.
Additional Help Available in 2025
Alongside the £301–£500 boost, the government will also continue to provide:
- Help with energy bills
- Council tax support
- Housing assistance
- Continued pensioner and disability payments
These measures are meant to create a safety net for those most affected by the ongoing cost-of-living crisis.
The £301–£500 Cost of Living Boost confirmed for 2025 brings real relief to millions of struggling households. With payments spread across the year, it offers timely support when it’s needed most.
If you’re on a qualifying benefit, stay alert for payment dates and double-check that your details are current—help is on the way.
FAQs
Do I need to apply for the £301–£500 Cost of Living Payments?
No. If you are eligible and receiving qualifying benefits, the payments will be made automatically.
Will these payments impact my existing benefits or tax obligations?
No. These payments are tax-free and will not affect your benefit entitlements or income assessments.
What if I don’t receive the payment even though I qualify?
First, check that your information with DWP or HMRC is current. If everything is correct, you can contact them to request a review.