With the continuing rise in the cost of everyday goods and services across the UK, the government has initiated the second round of Cost of Living Payments. As part of a £900 financial support plan, millions of households are set to receive a £300 deposit between 31 October and 19 November 2025.
The second payment follows the previous instalment of £301 and will be distributed automatically to eligible individuals. If you’ve been receiving benefits such as Universal Credit or Tax Credits, this payment could be coming your way soon.
Why the Cost of Living Support is Important in 2025
UK inflation continues to place pressure on families, particularly those on low or fixed incomes. The Cost of Living Payments are designed to ease financial stress without affecting your existing tax credits or benefits. These payments are non-taxable and do not count as income, ensuring full access to other financial assistance programs.
£300 Second Cost of Living Payment Dates (Confirmed)
The UK Government confirmed that the second payment of £300 will be sent out between:
- 31 October and 19 November 2025
This payment window ensures timely distribution before the end of the year, helping families manage household expenses.
£300 Cost of Living Payment Breakdown
| Payment Round | Amount | Payment Period |
|---|---|---|
| First Instalment | £301 | 25 April – 17 May 2025 |
| Second Instalment | £300 | 31 October – 19 November 2025 |
| Final Instalment | £299 | Expected by Spring 2026 |
This three-part plan totals £900 for eligible recipients.
Who Will Receive the £300 Payment
The payment is automatically made to individuals receiving one or more qualifying benefits. You do not need to apply manually. Payment sources may vary based on whether your support is from DWP or HMRC.
If you receive both Working Tax Credit and Child Tax Credit, the Child Tax Credit is prioritized for the payment. For individuals who qualify via both HMRC and DWP, the DWP will handle the payment.
MUST READ: Pension Boost Canada: Expected CPP and OAS Pension Increase in March 2025
Eligibility for the £300 Second Cost of Living Payment
You may qualify for the second instalment if you receive one of the following benefits during the assessment period:
- Universal Credit
- Income Support
- Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
- Pension Credit
Your eligibility depends on receiving one of the above benefits within a government-defined period, often several weeks before the payment date.
What If You Don’t Receive the Payment
While most payments will be made automatically, some individuals may not receive the £300 even if they think they qualify. If this happens, you can report a missing payment starting 20 March 2025.
Before reporting, double-check your:
- Bank account details
- Eligibility period
- CRA or DWP notification letters
The UK Government recommends waiting until after the full payment window before raising a complaint.
What Is the Disability Cost of Living Payment
In addition to the standard payment, a Disability Cost of Living Payment is available for individuals receiving certain disability-related benefits. The payment is £150 and is separate from the £300 support.
You may qualify if you receive:
- Attendance Allowance
- Armed Forces Independence Payment
- Disability Living Allowance
- Constant Attendance Allowance
If benefits are paid from both the Ministry of Defence and DWP, the payment will be issued by DWP.
How Will the Payments Be Delivered
All payments will be made directly to your:
- Bank account used for benefit deposits
- Or via cheque (if you’ve opted out of direct deposit)
You do not need to fill out any form or make a special request. Payment methods remain consistent with how your usual benefits are delivered.
FAQs
Who is eligible for the £300 Second Cost of Living Payment?
You qualify if you receive Universal Credit, Pension Credit, ESA, JSA, Working Tax Credit, or Child Tax Credit during the government-set assessment period.
When will the £300 payment be made?
The payment will be made between 31 October and 19 November 2025. It will be deposited automatically into the bank account linked to your benefits.
Do I need to apply for the £300 payment?
No application is needed. If you’re eligible, the payment will be made automatically based on your benefits and tax credit status.
Will this affect my other benefits?
No. The £300 payment is non-taxable and will not impact any other government assistance or benefits you currently receive.
Can both HMRC and DWP send payments?
No. If you’re eligible under both, only DWP will handle the payment to avoid duplication.
What if I don’t receive the payment?
You can report a missing payment from 20 March 2025, but only after confirming eligibility and checking your account properly.
What are the total cost of living payments for 2025?
The total announced support is £900, divided into three instalments: £301, £300, and £299.
Click here to know more.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.