LONDON – The Department for Work and Pensions (DWP) has announced that over eight million eligible, low-income households across the United Kingdom will receive a £300 Cost-of-Living Payment between 31 October and 19 November 2025. This tax-free payment is the second of three instalments totalling up to £900, part of a wider government package to support households with rising living costs.
£300 Cost-of-Living Payment
| Key Fact | Detail |
| Payment Amount | £300 GOV.UK |
| DWP Payment Window | 31 October – 19 November 2025 |
| HMRC Payment Window | 10 November – 19 November 2025 |
| Qualifying Period | 18 August – 17 September 2025 |
| Eligible Recipients | Over 8 million UK households |
Official Payment Schedule Confirmed
The DWP confirmed the payment schedule in a press release, aiming to provide financial relief ahead of the winter months. Most eligible people will receive the funds automatically into their bank accounts.
Those receiving benefits administered solely by the Department for Work and Pensions will be paid between 31 October and 19 November. A smaller group, who are eligible through Tax Credits only and receive no other qualifying DWP benefits, will be paid by HM Revenue and Customs (HMRC) between 10 November and 19 November.
The payment will appear on bank statements with a reference including the recipient’s National Insurance Number followed by ‘DWP COL’ or ‘HMRC COLS’. Officials have stressed that the payment is automatic and no one needs to apply, warning the public to be aware of scams claiming otherwise.
Who is Eligible for the £300 Cost-of-Living Payment?
Eligibility for the support is based on receiving certain means-tested benefits during a specific timeframe.
Qualifying Benefits
To receive the £300 payment, a household must have received a payment of one of the following benefits during the qualifying period:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
The Qualifying Period Explained
The qualifying period for this payment is 18 August to 17 September 2025. To be eligible, individuals must have been entitled to a payment of a qualifying benefit during this period. Alternatively, they may be eligible if they had a payment for a later assessment period that covered these dates.
For those on Universal Credit, eligibility can also be met if their earnings were low enough to qualify for a payment during the assessment period ending within these dates, even if their entitlement was subsequently calculated to be £0 (a ‘nil award’).
Part of a Wider Support Package
This £300 payment is the second part of the 2025/2026 Cost of Living Support package. The first payment of £301 was made in the spring, and a final instalment of £299 is scheduled for spring 2026.
In a statement, the Secretary of State for Work and Pensions, Mel Stride, said, “Tackling inflation is the best way to help people with the cost of living, but we are also providing this direct cash support for the most vulnerable households. This payment will provide a timely boost as we head towards the colder months.”
This targeted support for low-income households runs alongside separate payments of £150 for eligible people with disabilities and £300 for pensioners, which are being paid in addition to the Winter Fuel Payment.
What Recipients Need to Know
The government has reiterated that these payments are not taxable and will not affect existing benefit awards. They do not count towards the benefit cap.
Anyone who believes they are eligible but does not receive the payment by 20 November can report it missing through the official GOV.UK website. Officials advise waiting until after this date to make a report to allow all payments to be processed.
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FAQs
1. Do I need to apply for the £300 payment?
No. The payment is automatic. If you are eligible, the money will be paid directly into the bank account where you normally receive your benefits. Be cautious of any text messages or emails asking you to apply.
2. What if I don’t receive my payment by 19 November?
If you believe you are eligible but have not received your payment by the end of the payment window, you can report a missing Cost of Living Payment on the GOV.UK website from 20 November onwards.
3. Will this payment affect my other benefits?
No. According to the government, this payment is tax-free, will not be counted as income, and will not affect any of your other benefit entitlements or the benefit cap.
4. What will the payment reference be on my bank statement?
The reference will be your National Insurance Number followed by either ‘DWP COL’ for DWP recipients or ‘HMRC COLS’ for those paid by HMRC.
