With everyday prices still climbing, the UK government is stepping in with a timely helping hand. In June 2025, eligible households will receive a one-off £250 Cost of Living Credit to provide immediate relief amid ongoing financial strain. This isn’t a permanent increase in benefits—it’s a targeted, non-taxable payment designed to ease the burden of rising costs on families relying on specific government support.
A Closer Look at the £250 Cost of Living Credi
What It Is—and Isn’t
The Cost of Living Credit is a one-time £250 payment, issued between 20 and 30 June 2025. It is automatically paid, provided your details are up to date with either the Department for Work and Pensions (DWP) or HM Revenue & Customs (HMRC). No application is necessary, and the funds won’t impact your other benefits, nor do they count as taxable income.
Who Qualifies
To receive the payment, you must have been in receipt of certain means-tested or disability-related benefits during the eligibility window:
◆ 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
A recent update includes disability benefits:
◆ Personal Independence Payment (PIP)
◆ Disability Living Allowance (DLA)
◆ Attendance Allowance
Please note: you won’t qualify if you receive contribution-based ESA or Career’s Allowance on its own, unless you also received one of the benefits listed above.
Eligibility Dates & Verification
To qualify, you must have received one or more of the qualifying benefits between 15 January and 28 February 2025. The government checks your records during that period—there’s no need to reapply if you were receiving the benefits in time. Just make sure your payment and contact details are current with DWP or HMRC to avoid any delays.
How It’s Paid
Both DWP and HMRC will roll out payments throughout June:
- DWP will begin issuing payments from around 20–30 June
- HMRC aims to complete payments by the end of that month
- Look out for phrases like “DWP COL June” or “HMRC COL June” in your account
- Funds will go straight to your existing bank account or building society
No extra paperwork is needed—just keep an eye on your banking details to make sure they’re correct in the government systems.
Why It Matters
Softening the Impact of Inflation
Far from being a token gesture, this £250 payment is intended to help with everyday expenses. With food costs, energy bills, and other essentials continuing to rise, this one-off payment can make a real difference—whether it’s stocking up on groceries, covering a utility bill, or easing spending pressures.
How It Fits with Other Support Measures
This isn’t the first or last step in government efforts to support struggling households. It builds on previous initiatives like energy bill rebates, council tax relief, and the Household Support Fund to create a broader safety net.
Real-Life Examples
Ravi and Aisha, receiving Universal Credit since December 2024, meet the criteria because they were on the benefit during the eligibility period. Together, they will receive one £250 payment as a household.
Maya, who receives Personal Independence Payment (PIP), also qualifies, even if she receives no other benefits.
On the other hand, Jason, who is only on contribution-based ESA, would not receive the rebate—unless he is also receiving another qualifying benefit within the specified window.
£250 Isn’t a Small Amount
While it might seem modest, the £250 payment can stretch further than you might expect. Here’s how:
- It could cover an average weekly grocery shop for a small family
- It could reduce the electricity or gas bill for the month
- It offers a financial buffer—perhaps covering a month’s bus pass or prescriptions
- For those on tight budgets, that extra cash can bring welcome breathing room
What You Need to Do
To ensure you receive your payment smoothly:
- Log in or update your account with DWP or HMRC
- Review your bank account or building society details
- Confirm that your 2024–25 claims were current
- Look out for payment details in late June
A Brief Caveat
This credit is not a recurring payment. It is not like Universal Credit or Pension Credit, which are paid regularly based on need. This is a one-off relief payment meant to address current cost pressures, not a long-term policy shift.
In Summary
- The £250 Cost of Living Credit is a one-time, non-taxable payment issued in June 2025
- No application is needed—just qualify by having received specific benefits between 15 January and 28 February 2025
- Payments will be made by either DWP or HMRC, depending on your benefit type
- A single household typically receives one payment, regardless of how many qualifying adults live there
- This initiative is designed to provide targeted support to those most affected by inflation and cost pressures
Final Thoughts
If you rely on means-tested benefits or qualifying disability support, this £250 payment is intended for you. Even when no longer sufficient to replace regular income, that extra money in June can take the edge off rising living costs—whether filling your fridge, topping up your meters, or covering an unplanned expense. Just make sure your details are in order now so you don’t miss out when it arrives.
FAQs
1. What is the £250 Cost of Living Credit?
The £250 Cost of Living Credit is a government support payment aimed at helping low-income individuals and households cope with rising everyday costs such as food, energy, and rent.
2. Who is eligible for the £250 payment?
Eligibility typically includes people on certain DWP or HMRC benefits such as Universal Credit, Pension Credit, Income Support, or Working Tax Credit. Specific criteria will be confirmed closer to the payment date.
3. When will the £250 credit be paid?
Payments are scheduled to begin rolling out in June 2025. The exact date may vary depending on the type of benefit you receive.
4. Do I need to apply for the £250 payment?
No, if you are eligible, the payment will be made automatically into your bank account – there’s no need to apply.
5. Will this payment affect my other benefits?
No, this one-off £250 Cost of Living Credit is non-taxable and will not affect your existing benefits or income-based assessments.
