The UK government has officially confirmed the £300 cost of living payment UK for July 2025. This one-time financial boost will be distributed to millions of low-income households as part of the government’s ongoing effort to offset rising living expenses.
Administered through the Department for Work and Pensions (DWP) and HMRC, the payment is targeted at helping families meet essential expenses such as food, rent, energy bills, and healthcare. With high inflation and interest rates affecting budgets across the UK, the £300 cost of living payment UK provides timely support ahead of the summer holiday season.
What Is the July 2025 Cost of Living Payment?
The £300 cost of living payment UK is a non-taxable, one-off payment provided directly to eligible claimants who are already receiving specific benefits or tax credits. It is part of the government’s wider cost-of-living support package, alongside energy bill rebates and housing benefit increases.
Key highlights of this July 2025 payment:
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Fixed amount of £300 per household
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Deposited automatically into bank accounts from July 15 to July 31, 2025
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No application needed if already receiving qualifying benefits
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Payment reference will show as “DWP COL 2025” or “HMRC COL 2025”
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Will not affect other benefits or tax credits
This £300 cost of living payment UK is meant to help families cope with ongoing financial pressure without any disruption to their existing entitlements.
Who Is Eligible for the £300 Payment?
Eligibility for the £300 cost of living payment UK is based on whether the household is receiving qualifying benefits or tax credits during the assessment window, which runs from June 3 to July 2, 2025.
Eligible groups include:
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Universal Credit recipients
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Income Support or Income-based Jobseeker’s Allowance (JSA) claimants
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Income-related Employment and Support Allowance (ESA) claimants
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Pension Credit recipients
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Working Tax Credit and Child Tax Credit claimants (from HMRC)
Those who only receive New Style ESA, New Style JSA, or Contribution-Based benefits without additional qualifying credits are not eligible for the £300 cost of living payment UK.
Payment Dates and Disbursement Details
The £300 cost of living payment UK will be sent in two phases, depending on the benefit type and issuing authority:
| Benefit Type | Issuing Body | Payment Window | Payment Reference |
|---|---|---|---|
| DWP Benefits (UC, ESA, JSA) | DWP | July 15–25, 2025 | DWP COL 2025 |
| Tax Credits Only | HMRC | July 26–31, 2025 | HMRC COL 2025 |
All payments will be made directly to the registered bank accounts, and no separate application is required. If you don’t receive your payment by August 1, 2025, you can report it through the DWP or HMRC portal.
How to Check If You’re Getting the Payment
To confirm if you’re set to receive the £300 cost of living payment UK, follow these simple steps:
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Review your benefit award letters from DWP or HMRC
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Check if you were receiving qualifying benefits between June 3–July 2, 2025
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Look out for official government emails or texts (DWP never asks for personal details)
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Monitor your bank account for the correct COL 2025 payment reference
If you’re a joint claimant, only one payment will be issued per household. There’s no impact on your taxes or future benefits from this £300 cost of living payment UK.
FAQs
What is the £300 cost of living payment UK?
It is a one-time, tax-free payment of £300 given by the government in July 2025 to help low-income households manage daily expenses.
Who will get the July 2025 payment?
Households receiving Universal Credit, Pension Credit, income-related JSA or ESA, or Tax Credits during the qualifying period will receive the £300 cost of living payment UK.
When will the payment be made?
DWP will make payments between July 15–25, and HMRC will follow between July 26–31, 2025.
Do I need to apply for this payment?
No. Eligible individuals will automatically receive the £300 cost of living payment UK in their bank account.
Will this affect my other benefits?
No. The payment is not taxable and does not affect any other benefits or tax credits.
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