The UK government has officially confirmed a second Cost of Living Payment of £300 to support individuals and families on low incomes. This initiative is part of a broader £900 financial assistance package designed to help people manage the rising costs of daily essentials such as food, rent, and energy in 2025. The Department for Work and Pensions (DWP) will issue this payment automatically to eligible recipients.
Who Will Receive the Payment?
This £300 payment is aimed at assisting low-income households, pensioners, and vulnerable individuals struggling to meet the cost of living. To qualify, individuals must be receiving at least one of the following benefits during the relevant eligibility window:
- Universal Credit
- Pension Credit
- Working Tax Credit
- Child Tax Credit
- Jobseeker’s Allowance (Income-Based)
- Employment and Support Allowance (Income-Related)
- Income Support
For those receiving both tax credits and DWP benefits, the payment will be made by DWP only. Additionally, individuals who receive both Working Tax Credit and Child Tax Credit will receive just one payment, typically under Child Tax Credit.
Key Information Table
| Category | Details |
|---|---|
| Program Name | Cost of Living Payment |
| Administered By | Department for Work and Pensions (DWP) |
| Government | United Kingdom |
| Payment Amount | £300 (part of a total £900 package) |
| Eligible Benefits | UC, PC, Tax Credits, ESA, JSA, Income Support |
| Scheduled Payment Dates | Spring 2025, Summer 2025, Autumn 2025 |
| Application Process | Automatic for most; manual only for issues or late applications |
| Taxable Status | Non-taxable and no impact on other benefit entitlements |
| Reporting Issues | Via gov.uk from April 20, 2025 |
Disability Cost of Living Payment
An additional one-time payment of £150 may be available for individuals receiving certain disability-related benefits. This is intended to support those with extra health-related costs. Eligible benefits include:
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
- Constant Attendance Allowance
- Armed Forces Independence Payment
Recipients of these benefits will receive their £150 payment automatically, separate from the standard cost of living instalments.
How Payments Are Issued
Payments are deposited directly into the recipient’s bank account associated with their benefit claims. There is no need for a separate application if the individual’s benefit records are current and accurate. The agency responsible for your benefits (DWP or HMRC) will handle the distribution.
Verifying Your Eligibility
To avoid missing out on the payment, it’s important to verify that you meet the eligibility criteria for at least one of the specified benefits during the qualifying period. Here are a few steps to take:
- Double-check that you were receiving eligible benefits during the qualifying window.
- Review your bank account for any deposits during the expected payment period.
- Ensure that your personal and banking details on record with HMRC or DWP are accurate and up to date.
When to Report a Missing Payment
If you haven’t received your payment by the end of the scheduled window, you can report it as missing via the official UK Government website starting April 20, 2025. Make sure to confirm your eligibility and bank details before submitting a claim.
Conclusion
The second £300 Cost of Living Payment is a vital lifeline for millions across the UK as inflation and living expenses continue to pressure household budgets. With automatic payments and a clear eligibility framework, the support aims to reduce financial strain without creating unnecessary barriers. Whether you receive Universal Credit, Pension Credit, or any other listed benefit, it’s crucial to stay informed and ensure your records are current to access your entitled support.
FAQs About the Second £300 Cost of Living Payment
Who is eligible for the second £300 cost of living payment in 2025?
Anyone receiving qualifying benefits such as Universal Credit, Pension Credit, or Tax Credits during the eligibility period will receive the payment automatically.
Will I need to apply to receive this payment?
No application is needed if your information is up-to-date and you meet the eligibility requirements. Payments are issued automatically by DWP or HMRC.
Can I get both the disability and cost of living payments?
Yes, if you receive qualifying disability benefits, you will receive the additional £150 payment separately.
What if I haven’t received the payment?
You can report a missing payment through the gov.uk website from April 20, 2025, after confirming your eligibility and checking your bank account.
Is the payment considered taxable income?
No, the £300 payment is non-taxable and will not affect your existing benefit entitlements.
For More Information Click Here
Pari is a passionate writer known for captivating stories that blend imagination and reality. Inspired by travel, history, and everyday moments, Pari crafts narratives that resonate deeply with readers.