As inflation and household costs continue to strain UK residents, the government has launched a new one-off £250 Cost of Living Payment to provide timely financial relief. Rolling out in April 2025, this targeted support aims to help low-income individuals and families cope with surging utility bills, rent, and essential expenses.
Here’s everything you need to know about who qualifies, how the payment is distributed, and what additional support is available — plus answers to frequently asked questions that could help you avoid missing out.
What Is the £250 Cost of Living Payment?
Introduced in April 2025, the £250 Cost of Living Payment is a one-time, non-taxable payment issued automatically to millions of qualifying households. It’s part of a broader government initiative to address the financial pressure caused by the rising cost of essentials, including food, energy, and rent.
This relief effort is especially vital for individuals already receiving means-tested benefits. No application is needed — if you’re eligible, you’ll receive it automatically.
Who Is Eligible?
To qualify for the £250 payment, you must have received one of the following benefits between 12 February and 11 March 2025:
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Universal Credit
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Income-based Jobseeker’s Allowance (JSA)
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Income-related Employment and Support Allowance (ESA)
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Income Support
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Pension Credit
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Working Tax Credit
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Child Tax Credit
Eligibility is assessed based on your benefit record during that period. If you were entitled to a payment — or are later found to be entitled — you should receive the £250 automatically.
Who Isn’t Eligible?
Some individuals will not receive the payment. This includes:
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People only receiving contribution-based JSA or ESA
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Individuals on New Style ESA or JSA without an income-based component
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Anyone receiving a “nil award” of Universal Credit due to high earnings, deductions, or sanctions during the qualifying window
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Those receiving only Housing Benefit (unless they also receive one of the qualifying benefits listed above)
When and How Will It Be Paid?
Most eligible recipients will receive their payment by the end of April 2025. The £250 will be deposited directly into the same bank account where you normally receive your benefits. Look for a payment reference like:
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DWP COLP (Department for Work and Pensions)
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HMRC COL (HM Revenue & Customs, for Tax Credit recipients)
There’s no need to apply or contact anyone unless the payment doesn’t arrive by early May.
Does This Payment Affect My Other Benefits?
No. The £250 payment:
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Does not affect your benefits
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Is not taxed
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Will not be counted as income
This means you’ll continue to receive your usual benefits and entitlements — this payment is in addition to, not a replacement for, other support.
What If You Don’t Receive It?
If you believe you’re eligible but haven’t received the payment by 7 May 2025, you should:
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Wait until the end of the payment window (30 April 2025).
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Check your bank account and benefit statements for the reference code.
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Contact DWP or HMRC using the official Gov.uk contact form if the payment is still missing.
Extra Support You May Be Missing Out On
The £250 payment is just one part of the government’s response to cost-of-living pressures. You may also qualify for:
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Winter Fuel Payments (up to £300)
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Warm Home Discount (a one-off £150 discount on your energy bill)
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Cold Weather Payments (in areas hit by freezing temperatures)
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Household Support Fund – provided by local councils for food, bills, or other essentials
Visit GOV.UK or check with your local council to explore additional support options.
Something You Might Not Know
You can combine this payment with other support to create a financial buffer. For example, if you’re receiving Pension Credit and qualify for the Warm Home Discount, you could be looking at over £700 in direct support between now and winter 2025 — a critical difference for many older adults and families.
And here’s something unexpectedly helpful: many local councils are using the Household Support Fund to provide free school meals during holidays, food vouchers, or help with furniture and appliances. Don’t miss out — check with your local authority to see what’s available.
Frequently Asked Questions (FAQs)
Q: Do I need to apply for the £250 payment?
A: No, it’s automatic if you qualify. There is no application process.
Q: Can I get the payment if I’m only on Housing Benefit?
A: No, unless you also receive one of the qualifying benefits like Universal Credit or Pension Credit.
Q: Will this payment count as income for other benefits?
A: No. It won’t reduce or affect any other payments you receive.
Q: What if I just started receiving benefits after March 11?
A: Unfortunately, you must have been eligible between 12 February and 11 March 2025 to qualify for this specific payment.
Q: Can I still get it if I had a “nil award” due to high income that month?
A: No. If your benefit amount was reduced to zero during the qualifying period, you are not eligible.
Final Thoughts
While a single £250 payment won’t solve long-term financial issues, it can provide temporary relief when households need it most. Coupled with other available support, it’s a valuable lifeline during a time of rising costs.
If you’re unsure about your eligibility or need help accessing other benefits, reach out to a local welfare adviser or visit Gov.uk for accurate, up-to-date information. A few small checks could unlock hundreds of pounds in extra help.
