UK Confirms £300 Payout: The UK government has officially confirmed a £300 Cost of Living Payment in 2025, offering crucial support to millions of low-income households during difficult economic times. This second installment of a wider £900 support package is meant to soften the impact of rising food prices, energy bills, and general inflation.
Whether you’re on Universal Credit, Pension Credit, or Tax Credits, this article walks you through everything: eligibility, payment dates, how to get paid, and how to avoid missing out.
UK Confirms £300 Payout
| Feature | Details |
|---|---|
| Payment Amount | £300 |
| Payment Window | Expected between July and August 2025 |
| Eligibility Criteria | Based on receipt of means-tested benefits during a specific qualifying period |
| Qualifying Benefits | Universal Credit, Income-based JSA, Income-related ESA, Pension Credit, Child/Working Tax Credit |
| How It’s Paid | Automatically to your bank account – no application required |
| Payment Reference | “DWP COL” or “HMRC COLS” on your bank statement |
| Impact Reach | Over 8 million households expected to benefit in 2025 |
| Official Website | GOV.UK – Cost of Living Payment |
The £300 Cost of Living Payment in 2025 is a key measure to cushion the financial blow for those most in need. With no application process, it’s simple, fast, and effective—if you qualify.
Make sure your benefit details and bank information are up to date. And if you’re not eligible for this payment, explore other forms of support available through Winter Fuel Payments, Disability Payments, and Household Support Funds.
What Is the £300 Cost of Living Payment?
The £300 payment is the second of three installments forming a £900 support package launched by the UK government. It aims to help households cope with the ongoing cost-of-living crisis, particularly those on low incomes or reliant on government support.
Introduced first in 2022 and expanded in subsequent years, this initiative directly supports those most vulnerable to inflation shocks.
Who Is Eligible for the £300 Payment in 2025?
You’ll be eligible if, during the qualifying period (to be confirmed), you were receiving one of the following means-tested benefits:
- 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
Case Example: How It Works in Real Life
Let’s say Elaine, a single mother in Manchester receiving Universal Credit and Working Tax Credit, qualifies during the specified period in June 2025. By late July or early August, £300 will be automatically deposited into her benefit-linked account under the reference “DWP COL”. No action needed.
This money might help cover:
- £100 on food shopping for the month
- £150 towards her electricity and gas bill
- £50 towards school supplies
Comparison: Past Cost of Living Payments (2022–2025)
| Year | Payment 1 | Payment 2 | Payment 3 | Total |
|---|---|---|---|---|
| 2022 | £326 | £324 | — | £650 |
| 2023 | £301 | £300 | £299 | £900 |
| 2024 | £301 | £300 | £299 | £900 |
| 2025 | £301 (Paid) | £300 (Upcoming) | £299 (Autumn) | £900 |
How and When Will the £300 Be Paid?
The Department for Work and Pensions (DWP) and HMRC will roll out the payment automatically.
Expected Timeline:
- £301 – Spring 2025 (Completed)
- £300 – July–August 2025
- £299 – Autumn 2025
No forms, no paperwork. Your bank statement will show:
- DWP COL (if paid via Universal Credit, ESA, etc.)
- HMRC COLS (if paid via Tax Credits)
How Many People Will Receive the £300?
According to DWP reports, over 8 million households across the UK received similar payments in 2024. In 2025, the number is expected to remain the same or grow slightly due to increasing benefit claims and inflation-linked expansions.
Common Mistakes That Disqualify You
Avoid these errors to ensure you don’t miss the payment:
- Changed your bank account but didn’t update benefit info
- Cancelled a qualifying benefit just before the cut-off
- Moved abroad without meeting UK residence rules
- Receiving only New Style ESA or JSA without Universal Credit
Will There Be More Payments in 2026?
As of now, no new payments have been confirmed for 2026. The government has hinted that any continuation will depend on:
सेविंग अकाउंट में जमा किए हैं लिमिट से ज्यादा पैसे? आ सकता है इनकम टैक्स विभाग का नोटिस, जानें नियम कानून
- Inflation rates
- Energy bill trends
- Public demand
- Treasury budget allocations
Keep an eye on Autumn Budget 2025 announcements for updates.
Expert Insights: What the Government Is Saying
A spokesperson from the Department for Work and Pensions stated:
“We remain committed to supporting those most affected by inflation. These targeted payments ensure that the most vulnerable households continue to receive help when they need it most.”
This statement underscores the government’s focus on automatic, inclusive support for millions during the crisis.
Other Financial Support Available
Winter Fuel Payment
Support for pensioners during winter. Amount: £200–£300.
Household Support Fund
Emergency support for essentials like food, heating, and clothing.
£150 Disability Cost of Living Payment
For those receiving Disability Living Allowance, PIP, or Attendance Allowance.
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Frequently Asked Questions On UK Confirms £300 Payout
Q1: Do I need to apply for the £300 Cost of Living Payment?
No, it will be paid automatically to those eligible.
Q2: Can I receive the payment if I only get New Style ESA or JSA?
No, unless you also receive Universal Credit or another qualifying benefit.
Q3: What if I move abroad?
You must meet UK residence conditions. Payment eligibility varies for those living overseas.
