£650 Cost of Living: Inflation is increasing. Food, electricity, gas, rent – everything is getting expensive. The income of many families is the same as before, but the expenses have increased manifold. For this reason, the UK government has taken a very important step in 2025 – a one-time financial help of £650.
This help is for those people who are low-income and depend on some government benefits. Its purpose is to provide some help to those families who have been most affected by inflation.
Why is this help being given?
Inflation has increased a lot all over the world in the last few years. After the impact of Kovid-19, the Ukraine war and many other reasons, the cost of food, fuel and household has increased a lot. People’s salary is the same, but the expenses have doubled.
The government also understood that without any direct help, millions of people could be in trouble. That’s why the Department for Work and Pensions (DWP) started this one-time payment plan.
How much money will be given and when?
According to the government’s scheme, every eligible family will get £650 in one go. This amount will come directly into the bank account and there is no need to fill a separate application for this.
Key information at a glance:
| Description | Payment amount £650 per eligible household |
| Eligibility period | 1 March – 31 May 2025 |
| Payment start date | 15 June 2025 |
| Last payment shedule | 30 June 2025 |
| Eligible benefits | Universal Credit, Pension Credit, ESA, JSA, Income Support, Tax Credit |
| Is it necessary to apply? | No, you will get it automatically |
| The name on the bank statement is | “DWP COLP” + your National Insurance number |
| Official website | gov.uk |
Who can claim this money?
If you have taken certain government benefits between 1 March and 31 May 2025, you may be entitled to this payment.
List of eligible benefits:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit or Child Tax Credit
(if you have not taken Universal Credit)
Note: If you are only taking State Pension or Disability Living Allowance, you are not eligible for this £650 payment. But other schemes may be introduced by the government for such people later.
When and how will you get the money?
The government has already decided that this money will start being given from June 15. All eligible people will be paid by June 30, 2025.
The full distribution schedule:
- June 15, 2025 First installment will be sent
- June 20, 2025 More than half of the people will get the money
- June 30, 2025 Payment of the last batch is completed
How will you know if the money has come?
When the money comes to your bank account, the statement will say:
“DWP COLP” + your National Insurance number
This will make it easier to identify you.
No need to apply – everything is automatic
In the event that you have signed any of the described benefits during the recommended time (March 1 and May 31), the money will be transferred directly to your account.
Department for work and pensions (DWP) will examine your historical records to determine your suitability to receive this payment.
Some important things to remember
- A household will only receive £650 once, even if two people in that household are taking Universal Credit.
- Your benefit must be active between 1 March and 31 May 2025.
- The payment will be made directly into the bank, not in cash or cheque.
- You will not receive any calls or messages from the DWP asking for money – be careful if someone asks you for an OTP or bank details.
What will be the benefit of this money?
Many families have said that they felt very relieved to receive this amount. Some people paid their previous rent with it, some paid electricity or gas bills, and some bought food items.
The money is typically used to:
- Pay off rent or home loan arrears
- Pay off gas, electricity or water bills
- Buy food and essentials
- Pay off old debts
- Build up emergency savings
Some local authorities say demand for food banks and emergency loans has fallen since the scheme began – giving people some relief.
Final thoughts
At a time when everything is getting expensive, this move by the government has brought great relief to millions of people. The amount of £650 may not seem very big, but for families who are struggling to make a monthly budget, this money is very useful.
This help gives them some relief, restores their confidence and also gives them the assurance that the government understands their situation. Also, the government can bring more schemes in the future for those who were not included this time.
If you or someone you know is eligible for this benefit, then make sure that they get this help on time. And yes, to avoid any fraud, get information only from official websites and channels.
FAQ
Q1: What is the cost of living payment?
A: This is a single government pay-out to support low-income UK households in vying with increased food, energy, rent expenses, and other necessities.
Q2: Who are to receive the £650 payment?
A: Eligible individuals are people who received any particular means-tested benefits such as Universal Credit, Pension Credit, or Tax Credits between 1 March and 31 May 2025.
Q3: Is there any application needed to receive the payment?
A: No. The Department for Work and Pensions (DWP) will automatically send you the payment to your bank account if you are qualified.
Q4: At what point will the payments be done?
A: It began payment on 15 June 2025 and is due to be finished by 30 June 2025. It ought to be received by the majority of people in this time.
Q5: How will I be able to know whether I have received the payment?
A: Look into your bank account. It will be paid as DWP COLP followed by your National Insurance Number.
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.