£250 Cost of Living Boost in June for UK Residents – See If You’re Eligible!

As everyday costs continue to rise across the UK, the government’s £250 Cost of Living Payment is a welcome relief for millions. Scheduled to be issued between 6 June and 22 June 2025, this tax-free, one-off payment is designed to help households receiving certain benefits manage the growing pressure of food prices, rent, and energy bills.

Whether you’re already receiving Universal Credit or a pensioner on a fixed income, this guide walks you through everything you need to know—from eligibility to payment dates, and how to make the most of the support.

Overview

£250 Payment Being Issued

Inflation in the UK has pushed up the cost of basic essentials—food is up over 25% since 2021, and energy prices rose by 50% in some regions. The government’s response? Continue the cost of living support introduced in 2022–2024 with a new £250 boost in May 2025.

This payment targets those on the lowest incomes—offering direct financial support to those who need it most, no forms or applications required.

Who Qualifies?

You’ll be eligible for the £250 payment if you were receiving any of the following benefits during the qualifying period (exact dates TBC, but typically 2–4 weeks before the payment window):

• Universal Credit
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Working Tax Credit
• Child Tax Credit
• Pension Credit

Not Eligible If:

• You only receive New Style ESA, New Style JSA, or contribution-based benefits without any of the qualifying benefits listed above.

£250 Payment Will Be Delivered

You don’t need to apply. If you’re eligible, you’ll receive the payment automatically.

Key Details:

• Amount: £250 (non-taxable)
• Date: Between 6 May and 22 May 2025
• How: Direct deposit to the same bank account where your benefits are paid
• Payment Reference:
  • “DWP COL” if from the Department for Work and Pensions
  • “HMRC COLS” if from HM Revenue and Customs

Important Note:

The payment does not count as income, so it won’t reduce your existing benefits or affect eligibility for other support schemes.

Avoiding Scams

The DWP and HMRC will never contact you via text, email, or phone asking for your bank details or to claim this payment. If you receive a suspicious message, report it immediately at GOV.UK.

Smart Ways to Use

While £250 may not stretch far, it can help cover critical costs when used wisely:

• Pay down energy debts or high-interest bills
• Buy school uniforms or shoes in advance on sale
• Stock up on pantry staples and essentials
• Prepare for winter by topping up your heating fund
• Start or boost an emergency savings pot

Sarah from Manchester

Sarah, a single mum, received the £150 Cost of Living Payment in 2024. Here’s how she used it:

• £100 to clear part of her overdue gas bill
• £30 for new school shoes for her son
• £20 for an emergency bus pass
• £50 saved toward Christmas

“It gave me breathing room. I didn’t have to choose between heat and food that week,” she said.

What Other Support Is Available?

You may also qualify for other government help:

£150 Disability Payment

If you receive disability-related benefits like PIP, DLA, or Attendance Allowance.

Winter Fuel Payment

Up to £300 for pensioners to help with heating costs in colder months.

Household Support Fund

Offered through local councils—help with food, energy, rent, or essentials. Contact your local authority to apply.

FAQs