With inflation continuing to squeeze household finances across the UK, the government introduced the £299 Cost of Living Payment as the final installment of a three-part financial aid package. This initiative aimed to provide relief for low-income individuals struggling with increasing food prices, surging energy bills, and overall rising living costs.
Although most eligible recipients received their payments automatically in April 2025, some individuals faced delays or missing deposits. This comprehensive guide explains the eligibility criteria, payment process, and steps to take if the payment has not been received.
Overview of the £299 Cost of Living Payment
The £299 payment was the third and final segment of a larger £900 Cost of Living Support package issued for the 2025-2026 financial year. The first two payments were £301 and £300, bringing the total assistance amount to £900 for eligible households.
This last payment was scheduled for automatic disbursement between 6 April and 22 April 2025 to qualifying beneficiaries who received specific means-tested benefits. Unlike other financial assistance programs, there was no need to apply, as payments were processed directly into recipients’ bank accounts.
With inflation-driven economic pressures persisting, this final installment provided crucial financial relief to millions.
Eligibility Criteria for the £299 Payment
To qualify for the £299 Cost of Living Payment, individuals must have been receiving one or more of the following benefits during the eligibility period of 13 November to 12 December 2023:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
Anyone receiving these benefits continuously during the specified period should have automatically received the payment.
Who Was Not Eligible?
Not everyone receiving government support qualified for this assistance. Those excluded included individuals who were only receiving:
- New Style Employment and Support Allowance (ESA)
- Contribution-based ESA
- New Style Jobseeker’s Allowance (JSA)
These benefits are not means-tested, which means they are not based on financial need. Additionally, individuals who experienced a temporary interruption in their benefits claim during the eligibility period may have also been disqualified.
How the £299 Payment Was Processed
The payment was handled by two government agencies: the Department for Work and Pensions (DWP) and HM Revenue & Customs (HMRC). The deposit details varied depending on the agency distributing the funds:
- DWP payments appeared on bank statements as “DWP COL”.
- HMRC payments were labeled as “HMRC COLS”.
The payment was made directly into the recipient’s registered bank account without requiring additional applications or paperwork.
What to Do If You Didn’t Receive the Payment
Some eligible individuals reported not receiving their payment within the expected timeframe. If this applies to you, follow these steps:
- Check your bank statements from 6 April to 22 April 2025 for transactions labeled “DWP COL” or “HMRC COLS.”
- Review your benefit status to ensure you were actively receiving one of the qualifying benefits between 13 November and 12 December 2023.
- Report a missing payment through the official GOV.UK website using the dedicated form.
- Contact your benefits provider (DWP or HMRC) for further clarification and assistance.
Late Eligibility Cases
Individuals who successfully applied for Pension Credit after the eligibility period but had their claim backdated to cover the qualifying dates may still receive the payment. If you fall into this category:
- Ensure your Pension Credit claim was submitted before 5 March 2025.
- Contact DWP to verify your eligibility.
- If your claim qualifies and was backdated, the payment should be processed automatically. If not, report it as a missing payment.
Common Reasons for Missing Payments
Several factors could cause a delay or prevent an eligible individual from receiving the £299 Cost of Living Payment:
Possible Issue | Solution |
---|---|
Incorrect or outdated bank details | Update bank details with DWP/HMRC |
Pending or denied benefit claim | Check claim status with the relevant agency |
Payment processing delays | Wait a few extra days before reporting |
Fraud prevention checks | Contact the provider for verification |
If you suspect any of these issues affected your payment, contact your benefit provider immediately.
Beware of Scams
Whenever government payments are issued, scammers often attempt to exploit unsuspecting individuals. To stay safe:
- DWP and HMRC will never ask for personal or banking details via text, email, or phone calls.
- Avoid clicking on suspicious links or responding to messages claiming to be from government agencies.
- Always verify information directly through the official GOV.UK website.
Conclusion
The £299 Cost of Living Payment provided essential financial support for low-income households amidst rising living costs. If you were eligible but did not receive it, checking your bank records, reviewing your benefits status, and reporting any issues through official government channels are crucial steps.
Staying informed and vigilant against scams ensures that individuals receive their rightful support without falling victim to fraudulent activities. For further updates and assistance, always refer to the GOV.UK website.
Frequently Asked Questions (FAQs)
1. Can I apply for the £299 Cost of Living Payment?
No, applications were not required. Payments were made automatically to eligible recipients.
2. What if I was eligible but didn’t receive the payment?
Check your bank statements and benefit status, then report a missing payment via GOV.UK if necessary.
3. Does receiving the £299 payment affect other benefits?
No, this payment does not impact other benefits and is tax-free.
4. Can I receive the payment if I live abroad?
Only UK residents receiving qualifying benefits were eligible.
5. What should I do if I suspect a scam?
Ignore and report suspicious messages to the authorities. Do not provide personal or financial information.
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