In July 2025, the UK government will issue the second Cost of Living Payment of £300 to eligible low-income households. This support is part of the ongoing plan to help families manage rising bills, food prices, and energy costs. Many people across the UK are still struggling to cope with inflation and high living expenses, and this payment aims to ease that pressure a little.
If you’re wondering when the payment is coming, who will get it, or how to claim it, here’s everything you need to know in simple words.
What Is the £300 Cost of Living Payment?
The £300 payment is the second of three payments under the government’s Cost of Living Support package for 2025. These payments are targeted at people who receive certain benefits or tax credits.
The total support adds up to £900, broken down as:
- First payment: £300 (already paid earlier)
- Second payment: £300 (coming in July 2025)
- Third and final payment: £300 (expected later in the year)
Who Is Eligible for the £300 Payment?
To get the second £300 payment, you must be receiving one of these benefits during the qualifying period (which the government will announce officially very soon):
- 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: You don’t have to apply separately. If you’re eligible, the money will be paid automatically into your bank account.
What About People on Tax Credits Only?
If you’re only receiving Working Tax Credit or Child Tax Credit, you’re still eligible – but your payment may come a few weeks later than others. HMRC will handle these payments, and they’ll release an exact date closer to July.
Payment Dates – When Will the £300 Arrive?
Although an exact date has not yet been confirmed, the government has announced a payment window of mid-to-late July 2025. Last year, similar payments were made over a period of two to three weeks, so don’t worry if you don’t receive it on day one.
Here’s what to expect:
- DWP benefits recipients (like Universal Credit, ESA, etc.) will get it first
- Tax credit recipients may receive their payment a couple of weeks later
Keep an eye on announcements from the Department for Work and Pensions (DWP) and HMRC for confirmed dates.
Do You Need to Apply?
No. You don’t need to fill out any form or apply manually. If you qualify based on your benefits status during the announced dates, you’ll receive the money directly to your bank account.
Make sure:
- Your benefits claim is up to date
- Your bank account details are correct with DWP or HMRC
Beware of scams. If you get any message or call asking you to “claim” the payment, it’s likely fake. The government does not ask for personal details for these payments.
How Will the Payment Show in Your Bank Account?
When you receive the payment, it will come with a reference code in your bank account. This helps you identify that it is the correct government payment.
For example, the reference might look like:
- DWP COL followed by your National Insurance number (for DWP claimants)
- HMRC COLS for those who receive it via tax credits
What If You Don’t Get the Payment?
If you think you’re eligible but don’t receive the £300 by the end of the payment window:
- Wait for the full window to finish – payments are done in batches
- Check if your benefits were active during the qualifying period
- Contact DWP or HMRC for help (but only after the expected dates)
Why Is This Payment Important?
With food, gas, and electricity prices still high, this money could be a big relief. Even though £300 won’t cover everything, it can help with:
- Paying an energy bill
- Buying groceries for the family
- Covering other urgent expenses
The government has said this payment is part of its plan to reduce financial pressure on households during tough economic times.
More Help Coming Later in 2025
This is not the final payment. A third payment of £300 is expected towards the end of 2025. Together, the full £900 package is meant to provide consistent support across the year.
In addition, pensioners and people with disabilities may get separate one-off payments under other schemes. So if you fall into those groups, look out for updates from DWP in the coming months.
Final Thoughts
If you receive low-income benefits and are eligible, this £300 Cost of Living Payment in July 2025 can bring some timely support. You don’t have to do anything to claim it — just ensure your benefits are active and your bank details are correct. Keep checking official DWP or HMRC announcements so you don’t miss any updates.
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