A Lifeline for Millions
As bills keep rising, the UK government has confirmed a second £300 Cost of Living Payment to help people struggling with money. This payment is part of a £900 support package for 2025, aimed at low-income families and those on benefits. With food prices, energy bills, and everyday costs still high, this cash boost could make a big difference. The first £300 was paid earlier this year, and now the second is on its way. The news, announced in spring 2025, has many wondering when it’ll arrive and who can get it. Let’s break it down.
Why This Payment Matters
The cost of living crisis isn’t going away. Energy prices are up, groceries cost more, and wages aren’t keeping pace. The government’s £300 payment is designed to ease the pressure for those hit hardest, like people on low incomes or benefits. It’s one of three payments in 2025, totalling £900 for eligible households. The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) will handle the rollout, sending the money straight to bank accounts. No need to apply—it’s automatic if you qualify. This support follows earlier payments in 2023 and 2024, which helped over eight million households.
Who Can Get the £300?
To get the second £300 payment, you must be receiving certain benefits during a specific time, called the qualifying period. The exact dates for this period haven’t been confirmed yet but are expected to be in early spring 2025. Here’s who qualifies:
-
People on Universal Credit, Pension Credit, Income Support, or income-based Jobseeker’s Allowance (JSA).
-
Those getting income-related Employment and Support Allowance (ESA).
-
Individuals receiving Working Tax Credit or Child Tax Credit.
-
Some with “nil awards” (benefits reduced to £0 due to deductions) may still qualify if they meet other conditions.
If you get both DWP and HMRC benefits, the DWP will send the payment to avoid duplicates. The money is tax-free, won’t affect other benefits, and goes to the account where your benefits are paid.
| Detail | Information |
|---|---|
| Payment Amount | £300 |
| Qualifying Benefits | Universal Credit, Pension Credit, ESA, JSA, Tax Credits |
| Payment Dates | Late May to mid-June 2025 (expected) |
| Application Needed | No, automatic |
| Bank Reference | “DWP COL” or “HMRC COL” |
When Will the Money Arrive?
The second £300 payment is expected to roll out between late May and mid-June 2025, though exact dates are still to be confirmed by the DWP and HMRC. Payments will happen in stages, with Universal Credit claimants likely getting theirs first, followed by Tax Credit recipients a bit later. You’ll see the money in the same bank account where your benefits go, with a reference like “DWP COL” for DWP payments or “HMRC COL” for HMRC ones. If you think you’re eligible but don’t see the payment by mid-September 2025, check your benefit status and contact DWP or HMRC. A claim process for missing payments will open after the rollout ends.
What If You Don’t Qualify?
Not everyone will get the £300, but other help is available. The Household Support Fund, run by local councils, offers cash grants or vouchers for things like food and energy bills. For example, Blackpool residents with larger families can apply for a £300 grant. Check with your council for similar schemes. If you’re on benefits but miss the qualifying period, keep an eye out for future payments the government might announce more support later in 2025, depending on the economy. Always visit GOV.UK for official updates to avoid scams or fake news.
Making the Most of the Payment
This £300 could be a game-changer, but it’s worth planning how to use it. Pay off urgent bills, stock up on essentials, or save it for winter heating costs. If you’re worried about money, free advice is available from Citizens Advice or local charities. The payment is a one-off, and while a third £300 is planned for later in 2025, no further payments are confirmed yet. If you think you’ve missed out, double-check your bank account and benefit status. With costs still high, this cash boost is a small but vital help for millions. So, keep an eye on your account—you might see £300 soon.
