As household bills, rent, and daily essentials continue to rise, the UK government is stepping in with a new £250 Cost of Living Payment in May 2025. This one-off payment aims to ease financial pressures for low-income individuals and families receiving specific benefits.
If you’re wondering whether you qualify, how and when the payment will be made, or what to do if there’s a delay—this guide covers all the essential details.
What Is the £250 Cost of Living Payment?
The £250 payment is part of the government’s ongoing cost of living support initiative to help individuals dealing with high inflation and increasing living expenses.
It is non-taxable, does not affect other benefit entitlements, and will be paid automatically to those who meet the qualifying conditions.
Eligibility Criteria
To receive the £250 Cost of Living Payment, individuals must be in receipt of one or more of the following means-tested benefits during a specific qualifying period:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
Only those who were receiving these benefits during the qualifying dates will be eligible. Those receiving New Style ESA, New Style JSA, or contribution-based benefits without one of the benefits listed above will not qualify.
Payment Schedule and Key Details
The payment will be made over a two-week window in May 2025, with the majority of recipients expected to receive their funds by 22 May 2025.
Payment Details at a Glance
| Category | Details |
|---|---|
| Payment Amount | £250 (one-off payment) |
| Payment Window | 6 May – 22 May 2025 |
| Paid Automatically? | Yes |
| Taxable? | No |
| Impact on Other Benefits | None |
| Eligibility Based On | Benefit received during qualifying dates |
Payments will be made to the same bank account used for existing benefits and will be labeled as:
- DWP COL (for those receiving benefits from the Department for Work and Pensions)
- HMRC COLS (for those receiving tax credits only)
What Should You Do to Prepare?
To ensure a smooth and timely payment:
- Confirm eligibility: Review your benefit statements and make sure you were receiving qualifying benefits during the eligibility window.
- Update your bank details: Ensure your account information is accurate and up to date in your myGov or benefits portal.
- Monitor your bank account: Payments will be automatic, so watch for the reference codes in May.
If your circumstances have recently changed or if you’re unsure whether you qualify, it’s best to verify with your benefits account portal or through official benefit correspondence.
Additional Financial Support in 2025
In addition to the £250 payment, several other support measures are scheduled throughout 2025, including:
- £301, £300, and £299 payments under earlier cost of living support phases
- £150 Disability Cost of Living Payment for individuals on disability-related benefits
- £150 to £300 Winter Fuel Support for eligible pensioners
These benefits are targeted to provide relief across various demographic groups, including pensioners, families, carers, and disabled individuals.
What If You Don’t Receive the Payment?
If you believe you’re eligible but haven’t received your payment by 22 May 2025, follow these steps:
- Check your benefit eligibility for the qualifying period.
- Look for the payment reference (DWP COL or HMRC COLS) on your bank statement.
- Contact the appropriate department to report a missing payment and confirm your details are correct.
The £250 Cost of Living Payment in May 2025 provides much-needed support to millions of UK residents managing rising costs. With automatic payments, most eligible individuals won’t need to take any action—just make sure your benefit and banking details are up to date.
If you’re eligible, be prepared to receive the payment between 6 May and 22 May 2025, and use this opportunity to ease the burden of your monthly expenses.
FAQs
Do I need to apply for the £250 Cost of Living Payment?
No, the payment is made automatically to eligible recipients. Just ensure your benefit account and bank details are correct.
Will the £250 payment affect my existing benefits or tax status?
No, the payment is non-taxable and does not impact any other benefits you receive.
What if I was eligible but didn’t get paid by 22 May 2025?
Check your eligibility, bank statement, and contact DWP or HMRC directly if you believe your payment is missing.