With inflation still affecting everyday essentials and household bills in April 2025, millions across the UK continue to face rising financial pressure. In response, the UK government is providing a series of targeted Cost of Living Payments to support low-income households and individuals receiving certain benefits. These payments are part of a wider initiative to alleviate the impact of the ongoing cost crisis.
A recent announcement on 20 September 2025 confirmed the schedule for the second Cost of Living Payment of £300, which will be delivered between 31 October and 19 November 2025.
Breakdown of 2025 Cost of Living Payments
| Payment Type | Amount (£) | Payment Period |
|---|---|---|
| First Cost of Living Payment | 301 | 25 April – 17 May 2025 |
| Second Cost of Living Payment | 300 | 31 October – 19 November 2025 |
| Third Cost of Living Payment | 299 | By Spring 2025 |
| Disability Payment | 150 | By 1 April 2025 |
Details of the £300 Second Payment
The second instalment of the 2025 Cost of Living Payment will be automatically deposited into bank accounts of eligible claimants between 31 October and 19 November 2025. This comes after the first £301 payment made earlier in the year from 25 April to 17 May 2025.
Key Information:
- Payments are automatic. No application or action is required from the recipient.
- If you receive both Working Tax Credit and Child Tax Credit, you will receive payment only for Child Tax Credit.
- If eligible for both tax credits and a low-income benefit, the Department for Work and Pensions (DWP) will handle the payment instead of HMRC.
Who Qualifies for the Cost of Living Payments?
To receive the Cost of Living Payment, individuals must be claiming one or more of the following qualifying benefits during the eligibility assessment period:
- Universal Credit
- Working Tax Credit
- Child Tax Credit
- Income Support
- Pension Credit
- Employment and Support Allowance (income-based ESA)
- Jobseeker’s Allowance (income-based JSA)
Eligibility windows for each payment are confirmed by the DWP and published on the UK Government’s official website. Individuals must have received a payment (or an entitlement to payment) for one of these benefits during a specified timeframe.
Important Rules to Keep in Mind
- These payments do not count as taxable income.
- They will not affect your existing benefit entitlement or tax credit awards.
- If a person is later determined to be ineligible, the payment may need to be repaid.
- The third and final payment of £299 is expected to be delivered by Spring 2025.
What to Do If You Don’t Receive Your Payment
In some cases, eligible recipients may not receive their payment automatically due to processing errors, incorrect bank details, or eligibility issues.
If you haven’t received the second Cost of Living Payment by late November 2025, you can report it as missing starting 20 March 2026 via the official GOV.UK portal.
Before submitting a report:
- Double-check your bank account for the deposit.
- Review the eligibility criteria.
- Make sure your benefit claim was active during the qualifying assessment period.
Extra £150 for Disability Benefit Recipients
An additional £150 Disability Cost of Living Payment is available for individuals receiving qualifying disability-related benefits. This includes:
- Attendance Allowance
- Personal Independence Payment (PIP)
- Armed Forces Independence Payment
- Constant Attendance Allowance
- Disability Living Allowance (DLA)
Note: If you are receiving qualifying disability benefits from both the DWP and the Ministry of Defence, the payment will be issued by DWP only.
Conclusion
The UK government’s Cost of Living Payments in 2025 are essential for supporting millions of vulnerable individuals and families amid ongoing economic challenges. With payments clearly scheduled and eligibility criteria well-defined, these funds can help ease the pressure for those most affected. Staying informed and checking eligibility early ensures no one misses out on these crucial benefits.
Frequently Asked Questions (FAQ)
Q1: Do I need to apply for the Cost of Living Payments?
No, the payments are issued automatically to those who qualify based on their benefits status during specific assessment periods.
Q2: Will these payments affect my existing benefits?
No, Cost of Living Payments are not considered income and do not affect your existing benefits or tax credit claims.
Q3: What if I receive multiple qualifying benefits?
You will only receive one payment per qualifying period, regardless of how many benefits you receive. DWP prioritizes disbursement if you receive benefits from both DWP and HMRC.
Q4: What should I do if I haven’t received my payment by the due date?
First, check your bank account and eligibility. If it’s still missing after the payment window ends, report it as missing from 20 March 2026 using the government website.
Q5: Are these payments guaranteed for future years?
There is no confirmation beyond 2025. Future support packages will depend on government decisions and budget reviews.
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