Rising living costs are squeezing household budgets across the UK. That’s why the government has introduced the UK £250 Cost of Living Credit July 2025—a one-off, tax-free payment aimed at providing immediate financial relief. With energy bills spiking and everyday expenses climbing, this payment has the power to alleviate stress for many families, pensioners, and disabled individuals.
In this article, we’ll explore exactly who qualifies, when the £250 credit will arrive, and how you can secure this support. We’ll also discuss additional relief measures like energy bill assistance, council tax reductions, and local household funds. Everything is laid out clearly so you can act with confidence.
UK £250 Cost of Living Credit July 2025
The UK £250 Cost of Living Credit July 2025 is a targeted effort to ease financial burdens on low-income households. This £250 cost of living credit is automatic for those who received qualifying benefits between 15 January and 28 February 2025.
It requires no application and will land in bank accounts under clear references, making it accessible and easy to claim. This support complements other government initiatives, such as energy bill relief and council tax reduction, to deliver a holistic aid package.
UK £250 Cost of Living Credit July 2025– Overview Table
| Particular | Details |
| Payment Amount | £250 one-time cost-of-living support |
| Payment Timeline | Between 20 July – 30 July 2025 |
| Qualifying Period | Must have received eligible benefit from 15 Jan – 28 Feb 2025 |
| Included Benefits | Universal Credit, Income Support, JSA, ESA, Pension Credit, Tax Credits, PIP, DLA, Attendance Allowance |
| Who’s Eligible | Low-income families, pensioners, disabled individuals |
| Payment Reference | “DWP COL July” or “HMRC COL July” |
| Extra Support | £450 summer payment, energy bill relief, council tax reduction, household support fund |
| Application Required? | No – it’s automatic |
Who Is Eligible for the £250 Payment?
To receive the £250 Cost of Living Credit, you must have received one of these benefits between 15 January and 28 February 2025:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working or Child Tax Credit
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
Please note: Contribution-based ESA, Carer’s Allowance, and any new claims filed after 28 February 2025 are not eligible. Also, joint Universal Credit households are limited to one payment per household, not per person.
Payment Dates: When Will You Receive the £250?
The payment dates fall between 20 July and 30 July 2025, in two distinct phases:
- DWP-managed benefits (Universal Credit, JSA, ESA, etc.): payments start 20 July.
- HMRC-managed benefits (Tax Credits): payments begin 25 July.
Your bank statement will display the entry as either “DWP COL July” or “HMRC COL July”. If you don’t see the £250 credit by 30 July 2025, log into your benefits portal or contact the relevant agency to check eligibility and account details.
How to Ensure You Receive the Payment
You don’t need to apply for the £250 cost of living credit, but here’s how to make sure you get it:
- Update your bank details with DWP or HMRC.
- Confirm you were receiving qualifying benefits between 15 Jan – 28 Feb 2025.
- Activate alerts: enable notifications from Gov.uk, DWP, or HMRC.
- If payment hasn’t arrived by 31 July, log into your portal to view recent transactions.
- Contact the appropriate agency (DWP or HMRC) and lodge a complaint if there’s no payment, ensuring you keep the reference number.
Extra Government Support You Might Qualify For
Beyond the £250 credit, other forms of support available this summer include:
- £450 Summer Support Payment: A separate cash boost for those on benefits.
- Energy Bill Relief: Additional help aimed at reducing high gas and electricity costs.
- Council Tax Reduction Schemes: Available to low-income earners and those on qualifying benefits.
- Household Support Fund: Administered by local councils to aid with food, utilities, and essential costs.
Together, these initiatives—ranging from energy bill relief to council tax reduction—form a powerful package to assist households grappling with cost-of-living increases.
FAQs
Do I need to apply for the £250 Cost of Living Credit?
No, the government issues the payment automatically if you were on eligible benefits during the qualifying window.
When does the payment arrive exactly?
Payments are staggered: DWP benefits start arriving 20 July, while HMRC payments begin 25 July 2025, all complete by 30 July.
Can every adult in my household get the credit?
No, only one £250 payment per household—even if multiple beneficiaries are eligible.
What if I update my bank account after the qualifying period?
Your payment should still come through if updated before or during the payment window. Always check portals and contact agencies if delays occur.
Can I still get the credit if I contacted my MP about living costs?
Yes. The credit depends solely on receiving eligible benefits in the set timeframe, not on any external outreach or communication
