As the cost of living crisis continues to affect millions across the UK, the Department for Work and Pensions (DWP) has announced the £300 second payment as part of the support package set for July 2025. This mid-year disbursement aims to assist low-income households with additional financial pressure, building on previous cost of living payments.
This payment forms part of the government’s ongoing plan to deliver targeted relief to benefit claimants, especially those receiving Universal Credit, Pension Credit, and other income-related benefits.
Who Qualifies for the Second Payment UK in July 2025?
Eligibility for the £300 cost of living payment July 2025 is tied to the type of benefits you receive. To qualify, you must have received one of the following between a specified qualifying period in May or June 2025:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Pension Credit
- Income Support
- Tax credits (Working Tax Credit or Child Tax Credit)
Claimants receiving only New Style ESA, New Style JSA, or contributions-based ESA without any income-related component will not be eligible.
When Will DWP July 2025 Payments Be Made?
The Department for Work and Pensions has stated that the second payment UK round will begin rolling out from Monday, July 15, 2025, and continue over a two-week period. Eligible recipients will receive their payments automatically into their bank accounts.
No application is necessary, and individuals will receive a notification confirming the deposit. If you receive both DWP and HMRC benefits, you may receive your payments at different times.
July 2025 £300 Cost of Living Payment Overview
| Detail | Information |
|---|---|
| Payment Amount | £300 |
| Disbursement Start Date | July 15, 2025 |
| Issuing Department | Department for Work and Pensions (DWP) |
| Eligibility Benefits | Universal Credit, Pension Credit, JSA, ESA, Income Support, Tax Credits |
| Application Needed? | No, automatic payment |
| Separate HMRC Payment? | Yes, if receiving tax credits only |
Universal Credit Boost: What This Means for Claimants
This second cost of living payment delivers a timely universal credit boost for households already under financial pressure. With energy bills, rent, and food prices still high, this payment provides vital breathing space for millions. Importantly, this payment is not considered taxable income and will not impact benefit caps or entitlements.
Households with fluctuating earnings during the qualifying period should double-check their eligibility, as temporary changes in income can affect payment status. Those unsure about their status are encouraged to contact the DWP directly or check via their online account.
What to Do If You Don’t Receive Your Payment
While most payments will be processed automatically, some may experience delays due to mismatched records or changes in benefit claims. If you believe you’re eligible but haven’t received the £300 by August 1, 2025, it’s essential to reach out to the DWP for resolution. Keep your National Insurance number and benefit details ready for verification.
Conclusion
The £300 cost of living payment July 2025 marks a critical intervention in the government’s ongoing effort to ease financial hardship for the most vulnerable. As the second payment UK households will receive in the 2025 cycle, it reinforces the commitment to protect people on the lowest incomes amid persistent inflation and cost pressures. Staying informed and checking eligibility now ensures you don’t miss out on this important support.
FAQs
Who is eligible for the July 2025 cost of living payment?
To qualify, you must receive a qualifying benefit during the designated period in May or June 2025. This includes Universal Credit, Pension Credit, and income-based JSA or ESA.
Do I need to apply for the £300 payment?
No. Payments are automatic for all eligible claimants. There is no need to submit an application.
Will this payment affect my other benefits?
No. The £300 is tax-free and does not count as income for benefit calculations.
Can I receive the payment if I’m only on tax credits?
Yes, but HMRC will handle your payment, which may be disbursed separately from DWP payments.
What if I change bank accounts before July 2025?
Ensure your benefit details are up to date with the DWP or HMRC. Outdated bank information could delay your payment.
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