With inflation continuing to stretch household budgets across the UK, the government issued a final Cost of Living Payment of £299 in May 2025. This was the last installment of a £900 support package aimed at assisting those on low incomes facing surging costs for essentials like energy and groceries.
The payment was made automatically to eligible recipients between 6 May and 22 May 2025, targeting those already receiving qualifying benefits during a specific eligibility window. Despite automatic disbursement, some claimants were left puzzled by missing payments or unclear eligibility criteria.
Breakdown of the £299 Payment in 2025
The £299 payment marked the third and final part of a phased cost-of-living support strategy spread across the 2024-2025 fiscal year. Here’s a detailed breakdown:
| Installment | Amount | Period Issued |
|---|---|---|
| First Payment | £301 | Spring 2024 |
| Second Payment | £300 | Autumn 2024 |
| Final Payment | £299 | May 2025 |
This structure ensured staggered assistance for continuous financial relief across the year.
Eligibility Criteria for the May 2025 Payment
To receive the £299 payment, individuals needed to be receiving one or more of the following means-tested benefits during the qualifying period of 13 November to 12 December 2024:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
The payment was issued automatically if benefits were consistently received throughout the eligibility timeframe.
Who Was Not Eligible?
People receiving only non-means-tested benefits did not qualify. These include:
- New Style ESA
- Contribution-based ESA
- New Style JSA
Additionally, if your benefit claims were paused or disrupted during the eligibility period, you may have been disqualified from receiving the payment.
How the Payment Was Delivered
Payments were processed without any need for application, with identifiers depending on which agency issued the funds:
- DWP payments appeared as “DWP COL” on bank statements.
- HMRC payments showed up as “HMRC COLS.”
What to Do If You Didn’t Receive Your Payment
If you were expecting the May 2025 payment and it hasn’t arrived, follow these steps:
- Check Your Bank Statement – Look for entries labeled “DWP COL” or “HMRC COLS” dated between 6 and 22 May 2025.
- Verify Your Benefit Status – Confirm you were receiving a qualifying benefit between 13 November and 12 December 2024.
- Report a Missing Payment – Submit a missing payment report directly through the GOV.UK website.
- Contact the Relevant Agency – If needed, reach out to DWP or HMRC to get clarity on your eligibility or payment status.
Late Claims and Backdated Eligibility
If you applied for Pension Credit after the eligibility window but before 5 March 2025, you may still qualify for the payment if your claim was backdated to include the eligibility dates. In this case:
- Ensure your application was submitted before the deadline.
- Confirm with DWP whether your claim was accepted and correctly backdated.
- If eligible, the payment should be automatically processed, or you may need to file a missing payment request.
Common Reasons for Missing Payments
Several factors could lead to delays or missing Cost of Living Payments:
- Incorrect or outdated bank details on file.
- High transaction volumes causing temporary processing delays.
- Claims that were suspended or under review during the eligibility period.
- Additional fraud checks delaying payment.
If any of these apply, reach out to your benefit provider immediately for resolution.
Protecting Yourself from Payment Scams
Scammers often exploit major government aid programs. Stay safe by following these tips:
- Never share personal or banking information in response to unsolicited messages.
- Do not click on suspicious links from emails or texts claiming to be from DWP or HMRC.
- Always verify details on GOV.UK before responding to any contact.
Conclusion
The £299 Cost of Living Payment was a critical support measure in the UK’s 2024-2025 financial year strategy to counter inflation’s impact on vulnerable households. While the government aimed for a seamless rollout, delays and confusion were inevitable. Staying informed, checking eligibility, and taking swift action can help resolve most issues.
FAQs
Who can I contact if I think I should have received the payment?
You should contact the DWP or HMRC depending on which benefit you receive. They can verify your eligibility and payment status.
Can I still apply for the May 2025 Cost of Living Payment?
No application is required or accepted for the Cost of Living Payment. Eligibility is based solely on receiving the qualifying benefits during the specified period.
What happens if my benefits were reinstated after December 2024?
You may not be eligible for the payment if you weren’t receiving qualifying benefits during the exact eligibility period (13 Nov – 12 Dec 2024).
Will there be more Cost of Living Payments in 2025?
As of May 2025, no further payments have been announced. Keep checking GOV.UK for future updates.
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