The UK Government is stepping up its efforts to ease the pressure of rising prices by announcing an Extra Cost of Living Payment in 2025.
This payment—worth £605—is specifically designed to support low-income households, pensioners, and individuals receiving disability or income-based benefits, helping them cope with persistently high prices on essentials like food, energy, and healthcare.
Let’s break down everything you need to know about the 2025 Cost of Living Support Package, including eligibility, payment dates, and how it will be distributed.
What Is the 2025 Extra Cost of Living Payment?
The Department for Work and Pensions (DWP) is issuing a £605 one-time payment in July 2025 to those struggling with financial stress due to high inflation and rising household bills.
The payment is part of the UK government’s broader cost-of-living strategy, which includes several rounds of targeted financial aid.
This initiative follows previous £900 support packages spread over three installments, which ended with a final £299 payment earlier in the year. Unlike those staggered payments, this new £605 payment is a single lump sum to provide immediate relief.
Who Qualifies for the £605 Extra Payment in 2025?
Eligibility is restricted to people who are already receiving specific DWP benefits. The aim is to target support to those who are most financially vulnerable.
You may qualify if you currently receive:
- Universal Credit
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Income Support
- Pension Credit
- Jobseeker’s Allowance (JSA)
Note: The payment is automatic. There is no application required, and it will be issued separately from regular benefits.
When Will the £605 Be Paid?
The expected disbursement date is July 2025. However, the exact payment day may vary depending on:
- Your individual benefit cycle
- The BACS (Bankers’ Automated Clearing Services) system
- Possible delays due to weekends or bank holidays
You should monitor your bank, building society, or credit union account closely during this period. If you believe you were eligible but haven’t received your payment, you can report it to the DWP after verifying with your bank or payment provider.
Summary Table: UK Extra Cost of Living Payment 2025
| Details | Information |
|---|---|
| Payment Name | Extra Cost of Living Payment 2025 |
| Issued By | Department for Work and Pensions (DWP) |
| Payment Amount | £605 (one-time) |
| Expected Payment Month | July 2025 |
| Eligibility | Means-tested and disability benefit claimants |
| Application Required? | No – Paid automatically |
| Where to Check for Payment | Bank, credit union, or DWP hotline |
What Should You Do If You Haven’t Received It?
- Double-check your account
- Wait a few days after expected date
- Contact DWP via the official portal or hotline if the payment does not appear
- Do not reapply or submit new documentation unless directed
Why This Matters
This £605 payment provides significant short-term assistance to those who are hit hardest by rising energy bills, housing costs, and general inflation.
With over 1 million households expected to benefit, it reflects the government’s commitment to supporting the nation’s most vulnerable communities during economic uncertainty.
The UK Extra Cost of Living Payment 2025 is a welcome relief for many low-income individuals and families.
By automatically issuing £605 to those already receiving qualifying benefits, the government ensures timely support without unnecessary paperwork.
Keep an eye on your bank account this July 2025, and rest assured that help is on the way.
FAQs
Do I need to apply for the £605 cost of living payment?
No, no application is required. If you are eligible, the payment will be made automatically into your account.
What if I’m eligible but haven’t received the payment?
Check your account, and if it’s still not reflected after a few days, contact the DWP directly through their helpline or online portal.
Can I receive the £605 payment if I only get Universal Credit?
Yes, if you’re currently receiving Universal Credit, you should qualify for the extra cost of living support.