The UK government has rolled out a new £650 Cost of Living Payment to help families struggling with rising prices. Set to land in bank accounts in June 2025, this one-time payment aims to ease the pressure of high energy bills, food costs, and other essentials. It’s part of a bigger plan to support low-income households during tough economic times. But who qualifies, and when will the money arrive? Here’s everything you need to know.
Why This Payment Matters
With inflation still hitting hard, many UK families are finding it tough to cover basics like groceries and heating. The Department for Work and Pensions (DWP) is stepping in with this £650 payment to give a financial lifeline to those who need it most. It’s tax-free, won’t affect your existing benefits, and goes straight into your bank account if you’re eligible. This cash is meant to help with immediate needs, like paying bills or buying food, as prices continue to climb.
Who Can Get the £650 Payment?
The payment is for people already receiving certain benefits. You’ll need to have been claiming one of these during the qualifying period, which runs from March 1 to May 31, 2025. Only one payment is made per household, even if you get multiple benefits. If you’re on non-means-tested benefits like Disability Living Allowance or State Pension alone, you won’t qualify, but other support might be available.
| Eligible Benefits | Notes |
|---|---|
| Universal Credit | Must have an active claim |
| Income Support | Must be receiving payments |
| Pension Credit | For low-income pensioners |
| Income-based JSA/ESA | Contribution-based benefits don’t count |
| Child/Working Tax Credits | Managed by HMRC, not DWP |
When and How You’ll Get Paid
Payments will start rolling out from June 15, 2025, and most eligible households will see the money by June 30, 2025. DWP payments will show up in your bank account as “DWP COL” followed by your National Insurance number. For those on Tax Credits, HMRC will handle payments, marked as “HMRC COLS,” starting a bit later, from June 20 to June 28, 2025. No application is needed it’s automatic if you qualify. Make sure your bank details are up to date with DWP or HMRC to avoid delays.
What to Do If You Miss Out
- Check your benefit status: Ensure you were claiming an eligible benefit between March 1 and May 31, 2025.
- Look at your bank account: Search for “DWP COL” or “HMRC COLS” entries.
- Contact DWP or HMRC: Wait until June 30, 2025, before reporting a missing payment. Have your National Insurance number ready.
- Update your details: If you’ve changed banks or addresses, inform DWP or HMRC right away.
More Support Available
This £650 payment is part of a wider safety net, including the Household Support Fund, which offers up to £300 through local councils in summer 2025. The Energy Price Guarantee also helps keep energy bills in check, and pensioners or disabled people might get extra aid. Check your local council’s website for more details on what’s available in your area.
A Helping Hand in Tough Times
The £650 Cost of Living Payment is a welcome boost for millions of UK households feeling the pinch. While it won’t solve everything, it’s a step to help with everyday costs. Keep your details updated, check your bank account in June, and explore other support options to make the most of this help.
