As the cost of essentials continues to rise across the UK, the government has announced a £650 cost of living payment for eligible low-income households.
This much-needed financial support will land directly into bank accounts between 15 and 30 June 2025, offering help with everyday expenses like energy bills, food, and rent.
If you’re receiving certain means-tested benefits, you could be among the millions set to benefit—no application required.
Why This Support Payment Matters
From rising grocery prices to increasing utility bills and housing expenses, families are feeling the squeeze more than ever in 2025. The £650 payment is designed as direct relief, helping households bridge the financial gap without having to navigate complicated application processes.
Over 7 million households are expected to qualify, making this one of the largest cost of living supports in recent years.
Quick Overview of the £650 Cost of Living Payment
| Aspect | Details |
|---|---|
| Payment Amount | £650 per eligible household |
| Eligibility Period | 1 March – 31 May 2025 |
| Payment Dates | Between 15 June – 30 June 2025 |
| Payment Label | “DWP COLP” + National Insurance Number |
| Application Needed? | No – paid automatically to eligible recipients |
Who Is Eligible?
To qualify for the £650 payment, you must have received at least one of the following means-tested benefits during the period between 1 March and 31 May 2025:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
Who Is Not Eligible?
You won’t qualify for the £650 if you only receive non-means-tested benefits, such as:
- State Pension
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
However, additional support schemes may be announced for those recipients later in the year.
Payment Timeline – When Will You Get Paid?
| Date | Action |
|---|---|
| 15 June 2025 | First payments start being issued |
| 20 June 2025 | Over half of eligible households will be paid |
| 30 June 2025 | Final batch of payments completed |
Payments will appear as “DWP COLP” followed by your National Insurance number on your bank statement.
No Application Needed
One of the most convenient aspects of this support is that no application is needed. The payment will be processed automatically for eligible individuals. You don’t need to call or submit any forms unless:
- Your banking details have changed recently
- You suspect an error or have not received the payment by the end of June
What Can the £650 Payment Be Used For?
The payment is unrestricted, meaning you can use it however you see fit. Most households are expected to spend it on:
- Energy and utility bills
- Groceries and essential supplies
- Rent or mortgage payments
- Childcare expenses
- Medical costs or health-related expenses
- Outstanding debts or arrears
Early reports suggest the payment is already helping reduce dependence on food banks and emergency grants.
Key Points to Remember
- Only one payment per eligible household—even if multiple members qualify individually
- The payment is tax-free and will not affect any existing benefits you receive
- Always be cautious—the government will never ask for your bank details via phone, text, or email
- Make sure your details with the DWP or HMRC are up-to-date
What If You’re Not Eligible?
If you don’t qualify for the £650 payment, there are still other support options available in 2025, including:
- Winter Energy Support payments
- Local hardship grants through councils
- Targeted aid for pensioners and disabled individuals
Regularly check with your local council or government websites for new benefit announcements and grants.
The £650 Cost of Living Payment arriving this June is a timely intervention for millions of households struggling with increasing costs. Automatically paid to those receiving means-tested benefits, this one-off payment is a tax-free boost to help cover essential expenses without the need for extra paperwork.
If you’re eligible, expect the payment to show up in your account by 30 June 2025. For those who don’t qualify, keep an eye out—additional aid schemes are expected later in the year.
FAQs
Can I receive the £650 payment if I just started receiving benefits in May?
Yes, as long as you received an eligible means-tested benefit for at least one day between 1 March and 31 May 2025, you should qualify.
I only receive PIP and State Pension. Will I get the £650?
No, the current scheme is limited to means-tested benefits only. You may be eligible for different support announced later.
What should I do if I haven’t received my payment by 30 June?
First, check your bank account for a deposit marked “DWP COLP”. If it’s missing, contact the DWP or HMRC for assistance.