The Department for Work and Pensions (DWP) has confirmed a £250 Cost of Living Payment to be issued in September 2025.
This one-off payment aims to help low-income households, pensioners, and families struggling with rising food prices, energy bills, and other living costs.
If you’re wondering who qualifies, when the money will be paid, and how to claim it, this article explains everything in detail.
What Is the £250 Cost of Living Payment?
The £250 Cost of Living Payment is a tax-free, one-off payment designed to provide extra financial support. It is part of the government’s ongoing cost of living package, which has been in place since 2022. This payment is in addition to your regular benefits and does not affect any other entitlements.
The payment is especially timely as energy use increases in autumn and households face continued price pressures.
Eligibility Criteria for the £250 Payment
To qualify, you must have received one of the following means-tested benefits during the qualifying period between 12 August and 9 September 2025:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
Important:
- You won’t get the payment if you only receive new-style JSA or new-style ESA.
- If you got a nil award on your Universal Credit during the qualifying period, you won’t be eligible either.
Payment Dates & How It Will Be Paid
| Detail | Information |
|---|---|
| Amount | £250 |
| Payment Start Date | Monday, 16 September 2025 |
| Qualifying Period | 12 August – 9 September 2025 |
| Who Pays It | DWP or HMRC (depending on your benefit) |
| Payment Method | Direct bank deposit |
| Reference on Statement | Likely “DWP COL” or “HMRC COL” |
Payments will be made in batches throughout late September 2025.
- DWP will pay those on Universal Credit, Pension Credit, ESA, JSA, or Income Support.
- HMRC will pay those on Working Tax Credit or Child Tax Credit.
- Payments are automatic—you don’t need to apply or fill out forms.
Why This £250 Payment Matters
This support arrives just as households face higher energy usage and persistent food inflation. For many families and pensioners, an extra £250 could be crucial in paying bills, buying essentials, or staying out of debt.
It also complements other government support schemes such as:
- Winter Fuel Payments (up to £600 for pensioners)
- Cold Weather Payments (£25 per week during freezing spells)
- Warm Home Discount (£150 off electricity bills)
What If You Don’t Receive the Payment?
If you think you qualify but don’t get the payment by October 2025:
- Check your benefit statements for the qualifying period.
- Confirm your benefit was active and not a nil award.
- Contact DWP or HMRC (depending on which benefit you receive).
The £250 Cost of Living Payment in September 2025 offers vital relief for millions of UK households battling high costs.
With payments starting from 16 September 2025, it’s crucial to check that you’re on an eligible benefit during the qualifying period. If you are, the money will land directly in your account—helping you cover essentials as living costs rise.
FAQs
Do I need to apply for the £250 Cost of Living Payment?
No. If you are eligible, the payment will be made automatically into your bank account.
Will this payment affect my other benefits?
No. The £250 payment is tax-free and does not affect any other benefits or entitlements.
Can pensioners get this payment?
Yes. Pensioners receiving Pension Credit will automatically qualify for the £250 payment.
