A Lifeline for Tough Times
With prices for food, energy, and rent still pinching wallets, the UK government has announced a £650 Cost of Living Payment to help struggling families in June 2025. This cash boost, rolled out by the Department for Work and Pensions (DWP), aims to ease the pressure on low-income households hit hard by rising costs. Millions across the UK could see this money land in their bank accounts soon, offering a bit of breathing room. But who qualifies, and when will the cash arrive? Let’s break it down.
Who Can Get the £650 Payment?
To get this payment, you need to be claiming certain benefits between 1 March and 31 May 2025. The DWP has set clear rules to make sure the money reaches those who need it most. If you’re on benefits like Universal Credit or Pension Credit during this period, you’re likely eligible. The payment is automatic, so there’s no need to apply—just make sure your benefit claims are active. This £650 is tax-free and won’t affect your other benefits, giving families a clean slate to cover essentials like bills or groceries.
Eligibility for the £650 Cost of Living Payment
Here’s a quick look at who qualifies:
- You must be claiming one of these benefits between 1 March and 31 May 2025:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit (with an award of at least £26 for the year)
- Working Tax Credit
- You must live in the UK.
- The benefit must be active during the qualifying period, even for just one day.
- Non-means-tested benefits like State Pension or Disability Living Allowance don’t count.
| Benefit Type | Qualifying Period | Payment Amount |
|---|---|---|
| Universal Credit | 1 March–31 May 2025 | £650 |
| Income-based JSA | 1 March–31 May 2025 | £650 |
| Income-related ESA | 1 March–31 May 2025 | £650 |
| Income Support | 1 March–31 May 2025 | £650 |
| Pension Credit | 1 March–31 May 2025 | £650 |
| Child or Working Tax Credits | 1 March–31 May 2025 | £650 |
When Will the Money Arrive?
The DWP is rolling out the £650 payments in phases to make sure everyone gets their cash smoothly. Payments started on 15 June 2025 and will continue until 30 June 2025. The money will land directly in your bank account, labelled “DWP COLP” followed by part of your National Insurance Number. If you’re eligible, you don’t need to do anything—the DWP handles it all. Check your bank account around these dates, and if the payment doesn’t show up by early July, contact the DWP to sort it out.
How This Cash Helps Families
For many, this £650 is a game-changer. Families have shared how it’s helping them catch up on energy bills, stock up on groceries, or avoid borrowing money. Community groups say the payment is easing the strain, with fewer people turning to food banks or emergency loans since the rollout began. One mum said, “It’s a relief—we can pay the gas bill and buy school uniforms without stress.” While it’s a one-off payment, it’s giving over 7 million households a chance to steady their finances during tough times.
Extra Support on the Way
The £650 payment isn’t the only help coming. From April 2025 to March 2026, the government is also funding the Household Support Fund with £742 million to help vulnerable households with essentials like food, heating, or transport. Local councils will share this money, offering crisis support for things like utility bills or preventative help to stop families falling into debt. If you’re a care leaver or have caring responsibilities, your council might offer extra support, like help with transport or heating costs. Check with your local council to see what’s available.
Don’t Miss Out
This £650 payment is a vital boost for millions, but you need to be on the right benefits during the qualifying period to get it. If you think you’re eligible but haven’t seen the money by the end of June, reach out to the DWP. Keep an eye on your bank account for “DWP COLP” and use the cash to cover what matters most—whether it’s bills, food, or keeping the heat on. With extra help like the Household Support Fund rolling out next year, there’s more support to come. Stay informed, check your benefits, and make sure you’re getting the help you’re entitled to.
