With increased expenditure and rising cost of living, the families around the U.K. are severely impacted. To relieve such households, the Department for Work and Pensions (DWP) has come up with a new scheme to reduce the burden of those who are suffering from rising inflation.
UK Extra Cost of Living 2025: Extra Payment
Meeting basic needs has become a big challenge for individuals and households these days. With the constant rise in prices and increase in cost of living, the households are not able to meet up with daily expenses such as food, house, education fees, energy bills, and healthcare bills, as it has deeply impacted the lives of individuals across the U.K.
Looking at such circumstances, the Government of the UK has come up with an additional assistance called ‘Extra Cost of Living Payment 2025’, which will be provided to the eligible households for the year 2025. The assistance has been designed for those individuals who have reached their retirement age or are completely dependent on the government schemes for a condition like disability. Under this scheme, a lump sum of £450 will be provided to the vulnerable individuals.
UK Extra Cost of Living 2025: Overview
| Article On | UK Extra Cost of Living 2025 |
| Administered By | Department for Work and Pensions (DWP) |
| Country | U.K. |
| Beneficiaries | JSA, ESA, PC, UC, Income Support |
| Payment Amount | £450 (one-time payment) |
| Payment Type | Direct deposit from the DWP |
| Benefit Impact | Tax free |
| Category | Government Aid |
| Last Date to apply | June End 2025 |
| Official Website | gov.uk |
Purpose of the U.K. Extra Cost of Living Payment
The Department for Work and Pensions (DWP), working under the Government of the U.K., provides an additional Cost of Living Payment as a supplementary payment to all recipients as financial support to help families who are getting pushed towards the edge with the increasing cost of food, education, transportation, etc.
The Extra Cost of Living Payment of £450 is a tax-free and one-time payment for families struggling with financial burden due to the rising cost of living. The aim is to ease the financial strain on the vulnerable low-income groups and provide them with basic amenities.
U.K. Extra Cost of Living Payment: Eligibility Criteria
You will receive the extra payment once you qualify by receiving any of the given benefits as mentioned by the Department for Work and Pensions (DWP) during the qualifying period:
- Child Tax Credit
- Pension Credit
- Working Tax Credit
- Universal Credit
- Income Support
- JSA (Income-Based)
- Employment and Support Allowance (Income-Related)
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
Those individuals will also be considered eligible who have received a ‘nil award’, even if the deductions were made on the arrears and rent payment.
U.K. Extra Cost of Living Payment: Additional Benefits
The measures taken by the federal government of the U.K. for an extra cost-of-living payment will provide great relief from the financial burden to households. Barring the cash benefit, there are some other additional benefits provided by the government that work for the welfare of the households:
- An initiative of ‘The Household Support Fund’ distributed by the Local council.
- ‘Extended Energy Price Guarantee’ for individuals who belong to a vulnerable income group
- Suspension from Fuel Duty
U.K. Extra Cost of Living 2025: Payment Date
Though some payments have already started from May 2025 itself, there are still many payments that are due in June 2025. These payments are for those who are receiving DWP benefits or are experiencing delays.
Now, let’s have a look at the payment date:
- HMRC benefits: Such as Tax credit payments are expected to be credited between late May 2025 and mid-June 2025.
- DWP benefits, Such as ESA and Universal Credit, are expected to be credited between mid-May and early June 2025.
As the payment method is completely automatic, you have to constantly monitor your bank account statement for a transaction mentioned as ‘HMRC COL Payment’ or ‘DWP COLP’ to check that you have received the extra payment. In case you have not received the extra payment by the end of June 2025, you must directly contact the administration under the Department of Works and Pensions.
Things to Keep in Mind While Waiting for the Extra Cost of Living Payment
If you are waiting for the upcoming £450 Cost of Living Payment, you must verify your eligibility, recognize the payment procedure, and look after other payment methods. Though the payment method is completely automatic, to avoid any delays or confusion, you must:
- Update your bank details with the DWP.
- Look for the references such as ‘DWP COLP’ or ‘HMRC COL Payment’
- Monitor your bank statement
By constantly monitoring the above steps, you will easily get the benefit of on-time payment without any confusion or delay. In case you feel there is a need for change, you must directly get in touch with the administration.
| Official Website | Click Here |
| Homepage | moyle-council.org |
FAQs Based on the Extra Cost of Living Payment 2025
How will the payment get reflected on my account?
You should monitor your bank statement by checking the references from ‘DWP Col’ or ‘HMRC Col Payment’
Will there be any further Cost of Living Payments?
No, it is a one-time payment, and there has been no confirmation of extra payments.
Am I eligible for the Extra Cost of Living payment?
Individuals who are already receiving JSA, ESA, UC, and other such benefit will not qualify for the extra payment.
