£250 Cost of Living Credit Coming in June 2025 – What You Need to Know

As the cost of daily essentials continues to rise, the UK government is stepping in with targeted financial help. A one-time £250 Cost of Living Credit will be paid out in June 2025 to eligible households across the country. This special payment is designed to support people who rely on certain government benefits and are most impacted by inflation and financial hardship.

This initiative follows previous support efforts such as energy discounts, council tax rebates, and Household Support Fund allocations. While not a permanent increase in benefits, the £250 payment provides urgent relief, ensuring struggling households can keep up with essential bills and expenses.

Overview Table

Feature	Details
Payment Amount	£250
Distribution Period	20–30 June 2025
Application Needed	No
Eligibility Window	15 January to 28 February 2025
Payment Source	DWP (benefits), HMRC (Tax Credits)
Benefit Types Covered	UC, JSA, ESA (income-based), Income Support, Pension Credit, Tax Credits
Disability Benefit Coverage	Yes – includes PIP, DLA, Attendance Allowance
Shared Household Rule	£250 per household (not per person) for UC claimants
Affects Other Benefits?	No – this is separate and non-taxable
Where to Update Info	gov.uk/cost-of-living-payment

Payment Timeline

The £250 Cost of Living Credit is non-taxable, automatically distributed, and will not affect your other benefits.

The payment schedule will follow a phased rollout:

• DWP (Department for Work and Pensions) will begin issuing payments between 20–30 June 2025.
• HMRC (for those on Tax Credits) will complete their payments by the end of June.
• Payments will go directly into your bank account, and will appear with a reference such as “DWP COL June” or “HMRC COL June” on your bank statement.
• There’s no need to apply—as long as your bank details are up to date with your benefit provider, the payment should arrive automatically.

Eligibility Requirement

To qualify for this one-time payment, you must have received one of the approved means-tested benefits or disability benefits between 15 January 2025 and 28 February 2025.

Accepted Benefits Include:

• 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

Newly Included Disability Benefits:

• Personal Independence Payment (PIP)
• Disability Living Allowance (DLA)
• Attendance Allowance

Note: The scheme does not include those who only receive contribution-based ESA or Carer’s Allowance—unless combined with another qualifying benefit.

Example Scenario

Let’s say Ravi and Aisha are a married couple who have been receiving Universal Credit since December 2024. Because they were on the benefit during the required time frame (Jan–Feb 2025), they will receive a single £250 payment as a household.

Another example: Maya, who is on PIP, will also qualify for the payment. But Jason, who only receives contribution-based ESA, will unfortunately not be eligible under this scheme.

Final Thoughts

If you’ve been struggling with bills or have seen your grocery and fuel costs soar, this £250 payment is designed with your needs in mind.

While it’s not a fix-all, it adds a cushion during a period of financial turbulence. Make sure your benefit records and bank details are up to date—and keep an eye on your bank statement in late June.

No forms, no waiting lines—just automatic relief when you need it most.

FAQ’s