The UK government has officially confirmed that the £200 Cost of Living Payment will restart in 2025 to help low-income and vulnerable households manage ongoing financial pressures. With the cost of energy, groceries, and rent still elevated, this payment forms part of a renewed strategy to ease the burden on families struggling to make ends meet.
This payment is part of the broader support framework first introduced during the pandemic and extended through the inflation crisis in 2022–2023. In 2025, the government has decided to reissue this one-off support payment to those on means-tested benefits and other qualifying aid.
Who Is Eligible for the £200 Payment in 2025
To qualify for the £200 payment, individuals must be receiving one or more of the following means-tested benefits during the qualifying period:
- Universal Credit
- Income Support
- Pension Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
The payment will be made automatically, with no need to apply. However, eligibility will depend on whether the recipient received a qualifying benefit between April 22 and May 12, 2025. People receiving only New Style ESA, JSA, or contributory benefits will not be eligible unless combined with a qualifying income-based benefit.
When Will the £200 Be Paid?
The Department for Work and Pensions (DWP) has scheduled the payment for late June 2025, with most recipients expected to receive the money between June 20 and June 28. For those receiving only Tax Credits, HMRC will issue payments shortly after, usually in early July.
The payment will be made directly into the same bank account used for benefits or tax credits and will show up as “DWP COL” or “HMRC COL” in bank statements.
£200 Cost of Living Payment 2025 – Overview Table
| Category | Details |
|---|---|
| Payment Amount | £200 (one-off) |
| Payment Window | June 20–28, 2025 (DWP) / Early July (HMRC) |
| Qualifying Benefit Period | April 22 to May 12, 2025 |
| Application Required? | No – Automatic if eligible |
| Benefits That Qualify | UC, IS, ESA (income-based), JSA (income-based), PC, Tax Credits |
| How It Will Appear in Bank Info | “DWP COL” or “HMRC COL” |
What This Means for Low-Income Families
The £200 payment may not cover all inflation-driven costs, but it offers timely help for households juggling food, fuel, and rent increases. This measure comes alongside other 2025 supports such as the Warm Home Discount, Winter Fuel Payment, and Household Support Fund extensions, creating a more robust aid package for families in need.
Those who believe they qualify but haven’t received the payment by early July will be able to contact DWP or HMRC for review. Claims will be accepted up to September 30, 2025.