As of May 2025, the UK Government has provided updated guidance regarding the next phase of cost of living support from the Department for Work and Pensions (DWP). This includes a new wave of payments scheduled between June and July 2025 to assist low-income and vulnerable households struggling with ongoing inflationary pressures and the rising cost of essentials.
The cost of living payments are part of the government’s broader welfare support strategy, aimed at alleviating financial pressure from energy bills, food costs, and other essentials. Here’s a complete guide to what’s happening this summer.
Payment Overview for June–July 2025
Cost of living payments in this cycle will continue to target individuals receiving means-tested benefits, disability benefits, or pension credits. These payments are not new but are a continuation of the government’s multi-phase approach that began in 2022.
Below is an updated table showing the expected payment windows:
| Payment Type | Payment Window | Eligible Benefits |
|---|---|---|
| Means-Tested Cost of Living | 3–14 June 2025 | Universal Credit, Income-Based JSA, Income Support, etc. |
| Disability Cost of Living | 24–30 June 2025 | DLA, PIP, Attendance Allowance, AFIP, etc. |
| Pensioner Cost of Living Bonus | Early July 2025 | Pension Credit recipients |
Who Will Receive These Payments?
The recipients will include:
- Means-Tested Support: Individuals who were entitled to a qualifying benefit payment during a set period in April or May 2025. This includes recipients of Universal Credit, income-based Jobseeker’s Allowance, Employment and Support Allowance, Income Support, and Pension Credit.
- Disability Support: Those receiving disability-related benefits, such as Personal Independence Payment (PIP), Disability Living Allowance (DLA), and Attendance Allowance, and who meet eligibility criteria within a specified assessment window in spring 2025.
- Pensioner Support: Seniors receiving Pension Credit will also receive a lump sum cost of living payment in July.
Payment Method and What to Expect
Payments will be made automatically to eligible recipients—there is no need to apply. They will appear in bank statements with a distinct reference that typically includes the recipient’s National Insurance number and the code DWP COL or similar.
Those eligible are advised to double-check their bank details with DWP and ensure their benefit claims are up to date. If payments are missed, DWP encourages contacting them only after a reasonable wait of 10 working days past the end of the payment window.
Why These Payments Matter
In May 2025, inflation remains high, and utility costs have not returned to pre-crisis levels. For many households, especially those on fixed incomes or dealing with disability-related costs, these payments provide critical breathing room. While they do not replace comprehensive income, they serve to reduce the pressure of unexpected or seasonal expenses.
Additional Support Measures in Place
In addition to the direct cost of living payments, other supports available in summer 2025 include:
- Household Support Fund Extension: Local authorities continue to offer emergency assistance to residents via vouchers or direct help.
- Warm Home Discount Scheme: Expected to reopen for the winter season, offering further support to low-income households.
- Energy Price Cap Adjustments: Ofgem is due to update the energy price cap in July, which may affect upcoming utility bills.
Conclusion
The DWP’s cost of living payments scheduled for June and July 2025 are a continuation of the UK government’s effort to shield vulnerable citizens from economic hardship. With inflation persisting and many households still grappling with elevated living costs, this financial aid remains a vital tool. Staying informed on payment windows, eligibility, and related support schemes ensures recipients don’t miss out on assistance they’re entitled to.
FAQ
Who qualifies for the June–July 2025 DWP cost of living payment?
Eligibility depends on receiving one of the qualifying benefits during the specific assessment period, usually in April or early May 2025.
Do I need to apply for the cost of living payment?
No application is required. Payments are made automatically to eligible claimants.
What if I don’t receive my payment?
If you haven’t received the payment 10 working days after the window ends, contact the DWP with your National Insurance number and benefit details.
Are these payments taxable or affect other benefits?
No, the cost of living payments are non-taxable and do not affect existing benefit entitlements.
Will there be more payments later in 2025?
The government has not announced further payments beyond July, but may review the situation based on economic conditions.
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