The UK government has announced a £650 cost of living payment to help struggling families in June 2025. This cash, managed by the Department for Work and Pensions (DWP), aims to ease the pain of rising prices for food, energy, and housing. With millions of households feeling the pinch, this one-off payment is a lifeline for those on low incomes. But not everyone qualifies, and the money will roll out over a set period. Here’s everything you need to know about who can get it and when it’ll land in your bank account.
Why Is This Payment Happening?
Life has gotten pricier, with bills for essentials like groceries and heating going up. The government’s £650 payment is part of a plan to support people hit hardest by these increases. It builds on earlier cost of living payments from 2022 to 2024, which helped over 7 million households. The DWP says this cash will give low-income families a quick boost to cover bills or buy necessities. It’s a direct deposit, so no extra hassle, but you need to be on certain benefits to qualify.
Who Can Claim the £650?
To get the payment, you must have been claiming one of these benefits between 1 March and 31 May 2025: Universal Credit, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit, or Pension Credit. If you were eligible for even one day during this period, you could get the full £650. People on benefits like State Pension or Disability Living Allowance won’t qualify for this payment, but other help might be available later. Check your benefit status now to avoid missing out.
| Criteria | Details |
|---|---|
| Qualifying Benefits | Universal Credit, Income-based JSA, ESA, Income Support, Tax Credits, Pension Credit |
| Eligibility Period | Claimed benefit between 1 March and 31 May 2025 |
| Payment Amount | £650, one-off payment |
| Excluded Benefits | State Pension, Disability Living Allowance |
| Payment Dates | 15 June to 30 June 2025 |
When Will the Money Arrive?
The DWP will start sending out payments on 15 June 2025, and all eligible households should have the cash by 30 June 2025. The money will go straight into your bank account, marked as “DWP COLP” followed by your National Insurance number. You don’t need to apply—the DWP will check benefit records and pay you automatically if you qualify. If you’ve recently changed banks or moved, update your details with the DWP to make sure the payment doesn’t get delayed.
How Will People Use the Cash?
Past payments show most people spend this money fast, often within three weeks, on things like energy bills, groceries, or paying off debts. Single parents and those hit hardest by rising costs tend to use it quickest. Surveys from 2024 found 62% of people on tax credits and 68% on disability benefits spent their payments in under a month. With energy prices still a worry, the £650 could help cover summer bills or stock up on essentials before winter hits. Local councils have seen less demand for food banks when these payments go out, showing they make a real difference.
What Else Can You Do?
If you don’t qualify for the £650, other help is out there. The Household Support Fund, running from April 2025 to March 2026, gives local councils £742 million to support vulnerable people with costs like food or heating. You can contact your council to see what’s available. Also, check if you’re missing out on benefits like Pension Credit, which could unlock extra cash, including this payment. The government says more support might come later in 2025, so keep an eye on updates.
This £650 payment is a vital boost for millions of UK families in June 2025. If you’re on a qualifying benefit, the cash should land in your account soon. Check your eligibility and bank details now to make sure you don’t miss out on this help when you need it most.
