£250 Cost of Living Credit June 2025: There is good news for millions of UK households. Inflation is constantly putting pressure on people’s pockets and keeping this in mind, the UK government has once again come forward to help. The government has announced that a one-time Cost of Living assistance amount of £250 will be distributed by the end of June 2025. Its purpose is to give some relief to the economically weaker sections in essential expenses.
This scheme is especially for those people who are already receiving some special government benefits. With this assistance amount of £250, people will be able to get help in food items, electricity and gas bills, travel expenses or other essential things.
Why is this assistance different from other schemes?
This payment is not like any monthly benefit or tax deduction, but is a direct, one-time assistance given by the government. Its main purpose is to provide relief quickly, without any additional paperwork.
The biggest advantage of this scheme is that:
- You do not have to apply for it separately.
- If you are eligible, this amount will be automatically transferred to your bank account.
- This payment is tax-free i.e. there will be no reduction in your other benefits.
How long does it take to make payment?
The government has given the clarification that this sum of its250 will be dispatched between 20 June and 30 June 2025.
In the event that you receive benefits such as Universal Credit or Pension Credit, the money will arrive on DWP (Department for Work and Pensions).
On the other hand, if you are receiving Tax Credit, then this amount will be sent to you by HMRC.
When you get this payment, you will see a transaction reference like “DWP COL June” or “HMRC COL June” in your bank account.
Eligibility: Who will be able to avail the benefit?
The government has fixed a fixed time window for this scheme.
If you were availing any eligible benefit between 15 January 2025 and 28 February 2025, then you will be considered eligible for this scheme.
List of eligible benefits:
- Universal Credit (UC)
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support (IS)
- Pension Credit
- Working Tax Credit
- Child Tax Credit
Disability Benefits:
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
👉 Note: If someone is only receiving contribution-based ESA or Carer’s Allowance and not receiving any other eligible benefits, they will not receive the £250 support.
How many people in a household will get the payment?
This is very important – even if you and your partner are both on Universal Credit, the £250 is only for the whole household, not for each person separately.
It is to make sure any household receives the appropriate support but not to be payed twice. That is why it is important that your and your partner information is registered properly in your DWP or HMRC account.
Examples in real life to make you understand:
Ravi and Aisha – a spouse receiving Universal Credit to October 2024. Both were receiving benefits during the eligibility period, so they will receive a one-off payment of £250 into their joint account in June 2025.
Maya – a disabled woman receiving Personal Independence Payment (PIP). She lives alone and was also receiving benefits during the eligibility period, so she will receive the full payment of £250 into her account.
Jason – a man who only takes contribution-based ESA and is not receiving any other eligible benefits. For this reason he would not be considered eligible under the scheme.
DWP’s new rule – Families earning up to £20,000 can also be eligible
The government has recently introduced a new rule that now some people who earn up to £20,000 per year and receive certain eligible benefits can also benefit from such support schemes.
This means that people who were previously excluded just on the basis of low income can still be eligible, provided they are included in the prescribed benefits.
Have you myself got anything to do?
In layman terms no. You do not need to fill a different form and apply to receive eligible benefits; you simply do not need to take any action at all as long as your bank information is up to date with the DWP or HMRC.
The only thing you have to do is to ensure that:
- Your address and bank details are correct
- You have received eligible benefits within the time limit (15 January – 28 February 2025)
The government will do the rest.
Where to get or update information?
In case you believe your data is not up-to-date or wish to realize what you are entitled to, you are welcome to the official site:
Here you will get the facility to check eligibility, update bank details, and check the status of the payment.
Conclusion: Why is this help important?
When inflation is constantly rising in the country – whether it is gas bills, rent, travel or food items – then this one-time assistance from the government definitely gives some relief to the people.
This is not such a high figure of 250 pounds, but this is a lot considering low income families. It depicts that the government has not forgotten the most vulnerable segments and knows their daily requirements.
Will you get this payment?
If you have fulfilled the eligibility conditions given above, then you can definitely get this payment in June 2025. This is an automatic process, but if you still do not get the payment, contact the concerned department or check the status on the online portal.
FAQ
What is the Cost of Living Credit worth £250?
It is a one-time, non-taxable assistance amount of £250 distributed by the UK government. Its purpose is to give some relief to economically weaker sections in essential expenses like food items, electricity and gas bills, and travel.
Who will get the payoff of the £250 in June 2025?
You will be considered eligible if you were receiving any of the eligible benefits (such as Universal Credit, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Income Support, Pension Credit, Working Tax Credit, Child Tax Credit, Personal Independence Payment, Disability Living Allowance, or Attendance Allowance) between 15 January 2025 and 28 February 2025.
Should I make an application to obtain the £250 credit?
No, you do not need to apply for it separately. If you are eligible, the amount will be automatically transferred to your bank account, provided your bank information is up to date with the DWP or HMRC.
When is the Cost of Living Credit paid?
The sum of £250 will be dispatched between 20 June and 30 June 2025. You will see a transaction reference like “DWP COL June” or “HMRC COL June” in your bank account when you receive the payment.
Will such outgoing impact on my present benefits, or taxes?
No, this payment is tax-free and will not lead to a reduction in your other benefits. It is a supplementary support.
Shreya Singh is a dedicated financial journalist known for her in-depth coverage of government programs and economic updates. She consistently delivers accurate information on U.S. topics such as Stimulus Checks, IRS announcements, and federal relief efforts. Shreya also reports on UK welfare programs, covering developments in Universal Credit, PIP, and DWP news. Her clarity and commitment to trustworthy reporting have earned her a loyal following among readers seeking insightful financial updates.