£650 Cost of Living Payment: Eligibility, Payment Dates, and How to Receive It in the UK ; As part of its effort to support households during ongoing financial challenges, the UK government previously introduced a £650 Cost of Living Payment for low-income individuals and families receiving certain means-tested benefits. This financial support was designed to help cover the rising costs of energy, food, and everyday essentials.
While the £650 payment was a prominent feature in 2022 and parts of 2023, it remains a reference point for those anticipating similar schemes in 2025. Here’s a full breakdown of how the £650 payment worked, who qualified, how it was paid, and what the current situation is regarding new or continuing support in 2025.
£650 Cost of Living Payment: Overview
| Feature | Details |
|---|---|
| Payment Name | £650 Cost of Living Payment |
| Introduced By | UK Government (DWP & HMRC) |
| Year of Implementation | 2022 – Part of broader Cost of Living Support |
| Payment Amount | £650 (split into 2 installments) |
| Payment Recipients | Low-income households on means-tested benefits |
| Payment Type | Direct bank transfer |
| Status in 2025 | Ended, but newer schemes may replace it |
| Newer Payment (2025) | £450 (expected), other smaller grants possible |
Who Was Eligible for the £650 Cost of Living Payment?
To receive the £650 payment, individuals needed to be claiming one or more of the following means-tested benefits during the qualifying periods:
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
Contribution-based JSA or ESA alone did not qualify a person for this support.
Eligibility Periods for Each Installment
The payment was split into two parts. Each part had its own qualification criteria and dates:
| Installment | Qualifying Period Example | Paid By |
|---|---|---|
| First Payment (£326) | May–June 2022 | DWP or HMRC |
| Second Payment (£324) | August–September 2022 | DWP or HMRC |
Those receiving Tax Credits only were paid slightly later by HMRC, not DWP.
How Was the £650 Payment Paid?
The payment was automatic. There was no need to apply. It was paid via:
- Bank transfer to the same account used for benefit payments
- Separate transactions labeled as “DWP COL” or “HMRC COL”
| Payment Channel | Who Received It | Payment Code Example |
|---|---|---|
| Department for Work & Pensions (DWP) | UC, ESA, JSA, Pension Credit | DWP COLP |
| HM Revenue & Customs (HMRC) | Tax Credit Recipients | HMRC COLS1 or COLS2 |
Was the £650 Payment Taxable?
No, the £650 cost of living payment was:
- Tax-free
- Did not affect benefit entitlements
- Did not require reporting to HMRC as income
Other Payments Introduced Alongside the £650 Support
The £650 was one of several targeted support payments in 2022–2023. Additional schemes included:
| Support Payment | Amount | Target Group |
|---|---|---|
| Disability Cost of Living | £150 | Disability benefit recipients |
| Pensioner Cost of Living | £300 | Winter Fuel Payment recipients |
| Energy Bill Support Scheme | £400 (rebate) | All domestic energy customers |
Is There a £650 Cost of Living Payment in 2025?
As of now, the £650 payment is no longer active. However, the UK government is preparing a new £450 Cost of Living Payment in 2025, targeting similar groups. The structure and eligibility are expected to remain focused on means-tested benefits.
| Year | Payment Amount | Notes |
|---|---|---|
| 2022 | £650 | Two installments, full rollout |
| 2023 | £900 | Split into three payments |
| 2024 | £299 | One-off payment in spring |
| 2025 | £450 (expected) | Subject to final approval and budgeting |
Common Issues Reported with the £650 Payment
- Delayed payments: Some received their funds days or weeks after the official start.
- Eligibility confusion: People receiving non-means-tested versions of ESA or JSA mistakenly expected payment.
- Incorrect banking info: Led to payment rejections or redirections
What to Do If You Did Not Receive the £650 Payment
If you believe you were eligible but did not receive the payment:
- Verify your benefit type (must be means-tested)
- Confirm your claim dates matched the qualifying period
- Contact DWP or HMRC (based on your benefit type)
- Use the official GOV.UK contact numbers for accurate assistance
Future Support for Low-Income Families in 2025
Although the £650 payment is no longer issued, low-income households should monitor upcoming support packages in 2025. Possible schemes include:
- New one-time payments (e.g., £450)
- Extended warm home discounts
- Housing and council tax rebates
- Additional pensioner or disability top-ups
Frequently Asked Questions (FAQs)
Q1. Was the £650 payment a loan or grant?
It was a grant, not repayable under any condition.
Q2. How could I check if I received both installments?
Review your bank statement for entries labeled “DWP COL” or “HMRC COL”.
Q3. What happens if I changed bank accounts during that time?
You needed to ensure your details were updated with DWP or HMRC before the payment dates.
Q4. Can I still claim the £650 if I missed it?
No. The scheme is closed, and backdated claims are not accepted.
Q5. Will there be more payments in 2025?
Yes, a £450 payment is under discussion for 2025, pending official confirmation.
Disclaimer
This article is an original and exclusively written piece of content for informational purposes only. It has not been copied from any other website or reused elsewhere. All information is based on government records and publicly available guidance. For the most accurate and updated information, readers should consult the official UK government website at gov.uk or contact DWP directly.