£300 Second Cost of Living Payment in June 2025 – What UK Residents Need to Know ; As the cost of living crisis continues to impact households across the UK, the government has announced a second round of financial support payments in 2025. This includes a £300 Cost of Living Payment, set to be distributed in June 2025. Targeted at low-income individuals and families, the payment is part of ongoing efforts to mitigate the pressure of rising prices on essentials such as food, energy, and housing.
Here’s a comprehensive breakdown of what UK residents need to know about the upcoming £300 payment.
What Is the June 2025 £300 Cost of Living Payment?
The £300 payment is the second installment in the government’s 2025 cost of living support plan. It follows earlier payments made in response to inflation and high energy costs and is aimed at vulnerable households on means-tested benefits.
This one-off, non-taxable payment will be made automatically to eligible recipients, with no need to apply.
Who Is Eligible for the £300 Payment?
The payment is targeted toward individuals who receive any of the following means-tested benefits:
- 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
To qualify, claimants must have received one of these benefits during the qualifying period, which is expected to fall between late April and early May 2025. The exact dates are to be confirmed by the Department for Work and Pensions (DWP).
Key Eligibility Notes:
- If your benefits are suspended or paused during the qualifying period, you may not receive the payment.
- Those receiving only New Style ESA, New Style JSA, or contributory benefits are not eligible unless they also receive a qualifying means-tested benefit.
Payment Schedule: When Will It Be Paid?
The £300 payment is scheduled to begin distribution in mid-June 2025, according to government projections. Most payments will be made automatically, and eligible recipients should see the funds deposited into their accounts by the end of June.
Expected Payment Timeline
| Event | Date |
|---|---|
| Qualifying Period | April 22 – May 12, 2025* |
| Official Announcement of Payment | Early June 2025 |
| Payment Window Begins | June 17, 2025 |
| Final Payments Expected By | June 30, 2025 |
*Dates subject to final confirmation by the DWP.
How Will the Payment Be Delivered?
The £300 payment will be automatically transferred to the same bank account where claimants receive their existing benefits. The transaction will appear with a reference similar to:
DWP COLP (Cost of Living Payment)
Those on tax credits only (i.e., not receiving DWP-administered benefits) will receive the payment from HMRC, usually a few days after DWP payments are issued.
Will There Be More Payments in 2025?
While the £300 payment is currently labeled the second installment for 2025, it may not be the final one. Depending on ongoing economic conditions, further announcements are possible later in the year. In 2023 and 2024, the government issued multiple rounds of support payments ranging from £150 to £900.
What to Do If You Don’t Receive the Payment
If you’re eligible but do not receive the payment by early July, the DWP will provide a reporting tool on GOV.UK where claimants can report a missing payment. Be sure to:
- Check your benefit status for the qualifying period
- Confirm your bank account information is up to date with DWP or HMRC
- Wait until at least 10 working days after the last payment date before reporting
How This Affects Other Support
This payment does not impact your benefit entitlement, is not taxable, and does not count as income for any other benefits.
In addition to the £300 payment, you may also be eligible for other types of 2025 support, including:
- Disability Cost of Living Payments (for those on disability-related benefits)
- Winter Fuel Payment and Pensioner Cost of Living Payment
- Local Authority Household Support Fund (subject to availability in your area)
FAQs
Who will receive the £300 Cost of Living Payment in June 2025?
Anyone on qualifying means-tested benefits during the eligibility period (April–May 2025) will automatically receive the payment.
Do I need to apply for the £300 payment?
No. If you’re eligible, the payment will be made automatically. There is no need to apply.
Will the payment affect my benefits or taxes?
No. It’s tax-free, does not count as income, and will not affect any of your existing benefits.
What happens if I am newly eligible for benefits after the qualifying period?
Unfortunately, you won’t be eligible for this round of payments. Eligibility is tied to benefit status during the specific qualifying period.
Final Thoughts
The £300 Second Cost of Living Payment in June 2025 is a vital measure to support vulnerable UK households as the cost of everyday necessities remains high. For millions, this payment will provide temporary relief during an economically challenging year. While it won’t solve the long-term issues around inflation and income disparity, it offers much-needed financial breathing room.
To make sure you receive your payment smoothly:
- Monitor announcements from the DWP and HMRC
- Verify that your benefit status is current
- Keep your contact and bank details updated
Further assistance may be on the way, but for now, the June 2025 payment is a step forward in the government’s strategy to ease the burden of rising living costs.