June 2025 £500 Cost of Living Support: Who Qualifies and How to Get Help ;With inflation still affecting household budgets and essential costs such as food, energy, and rent rising across the UK, the government has announced a new £500 Cost of Living Support Payment set to be rolled out in June 2025. This measure is part of a wider package designed to support lower-income families, pensioners, and vulnerable individuals facing economic hardship.
This guide breaks down everything you need to know about the £500 payment, including eligibility criteria, how to access the support, payment timelines, and additional help available this year.
What Is the June 2025 £500 Cost of Living Support?
The £500 Cost of Living Support Payment is a one-off, non-taxable payment issued by the UK Government to help people cope with continued cost pressures. This is part of a temporary extension to the broader cost of living assistance plan first introduced in response to the energy and inflation crises of 2022–2024.
Unlike the earlier £301 and £300 payments issued in prior years, the June 2025 payment is slightly higher to reflect continued economic strain on working families and benefit recipients.
Who Qualifies for the £500 Support Payment?
The payment is means-tested, meaning it will only be available to individuals or households receiving specific government benefits during a designated qualifying period.
Eligible benefits include:
- Universal Credit (including low-income earners)
- Income Support
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Pension Credit
- Child Tax Credit
- Working Tax Credit
Qualifying Period:
To receive the payment, individuals must have been entitled to one of the above benefits between April 22 and May 12, 2025. The Department for Work and Pensions (DWP) or HMRC will use this period to assess eligibility.
Not Eligible:
- Individuals receiving only New Style JSA or ESA (unless also receiving a qualifying benefit)
- Households with income above thresholds who do not qualify for means-tested support
- Non-residents or those without settled status in the UK
How to Claim the £500 Cost of Living Support
In most cases, you do not need to apply for the payment. If you are eligible based on benefit records, the payment will be made automatically.
However, you should:
- Ensure your bank details are up-to-date with DWP or HMRC.
- Verify your benefit status during the qualifying period.
- Monitor official communications from GOV.UK, DWP, or HMRC for confirmation.
If you are a tax credit-only recipient, your payment will be issued by HMRC, typically within a few days after DWP payments are made.
Payment Schedule for June 2025
| Milestone | Date |
|---|---|
| Eligibility Period | April 22 – May 12, 2025 |
| Payment Announced | Late May 2025 |
| DWP Payment Window | June 17 – June 28, 2025 |
| HMRC (Tax Credit) Payments | June 24 – June 30, 2025 |
| Final Date to Report Missing Payments | July 19, 2025 |
Payments will show in bank accounts under references such as “DWP COL” or “HMRC COL”.
What If I Don’t Receive the Payment?
If you’re eligible but don’t see the payment by early July, you should:
- Wait at least 10 working days after the final payment date
- Use the DWP online reporting tool on GOV.UK
- Contact HMRC directly if you only receive tax credits
It’s important to avoid phishing scams. Always use official government websites and never share personal data via email or social media.
Additional Cost of Living Help in 2025
Beyond the £500 payment, there are several additional supports available in 2025:
- Disability Cost of Living Payments (£150 for eligible individuals)
- Pensioner Winter Fuel Payments (up to £600 depending on age and income)
- Local Authority Household Support Fund (help with food, clothing, or emergency costs)
- Warm Home Discount (rebates on energy bills for qualifying households)
- Council Tax Reduction Schemes in your local area
You may also qualify for childcare support, rent assistance, or NHS Low Income Scheme help depending on your circumstances.
FAQs
Is the £500 payment taxable?
No. The £500 Cost of Living Payment is not taxable and will not affect your existing benefits or income-based assessments.
Can I receive the payment if I start benefits after May 2025?
No. You must have been eligible during the qualifying period (April 22 to May 12, 2025) to receive the June payment.
Will there be another payment later this year?
While there’s no confirmed third payment yet, further support may be announced in the Autumn Budget 2025 if inflation remains high.
What if I’m working and receiving Universal Credit?
You can still qualify, provided your Universal Credit payment was above £0 during the qualifying period.
Final Thoughts
The June 2025 £500 Cost of Living Support payment offers crucial relief for those most impacted by ongoing financial pressures. While it may not solve every challenge facing UK households, it provides immediate help with daily essentials and temporary financial security.
To ensure you don’t miss out:
- Double-check your benefit entitlements
- Keep your records updated
- Stay alert for official updates from DWP or HMRC
More long-term solutions may follow later in the year, but for now, this payment is a vital tool in easing cost-of-living burdens for millions of UK residents.