Relief from inflation: UK government is giving one-time assistance of £250 – know if you are eligible or not
Even in 2025, the blow of inflation has broken the back of millions of families in Britain. Food items, electricity bills, bus and train fares – the prices of everything are constantly increasing. In such a situation, the government has taken a big decision to provide relief to the economically weaker people.
The UK government is giving £250 Cost of Living Credit to eligible people under a new scheme at the end of June 2025. This is a one-time direct cash help, which is for those who are already taking certain government benefits.
This amount will come directly to your bank account and for this you will not need to fill any form or apply.
What is this assistance and what is its purpose?
This one-time help of £250 is being given especially to those who are from the low income group and are already taking advantage of some government schemes. Its purpose is to help meet the daily needs of those people whose income is not enough to cope with the rising prices.
The most special thing about this scheme is that it:
- is a one-time amount,
- is tax-free (no tax will be levied on it),
- will not reduce your other benefits.
The government is trying to provide this help directly to the eligible people without any hassle.
How much money will be received and when?
| Features | Details |
| Payment amount | £250 |
| Payment dates | 20 to 30 June 2025 |
| No application required | Yes |
| Eligibility deadline | 15 January to 28 February 2025 |
| Payment by | DWP (Department for Work and Pensions) or HMRC |
| Benefits covered | UC, JSA, ESA, IS, Pension Credit, Tax Credits, PIP, DLA etc |
| Per person or household? | £250 per household for households taking Universal Credit (UC) |
Who will get the £250?
If you received one of the following benefits between 15 January and 28 February 2025, you will be eligible for this support:
Means-tested 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 you are receiving only Contribution-based ESA or only Carer’s Allowance, and no other benefits, you are not eligible for this scheme.
Let’s understand with some examples
A couple named Ravi and Ayesha have been on Universal Credit since last year. Since they live in the same household and make a joint claim, they will receive a one-time amount of £250 in their account.
Maya receives PIP (Personal Independence Payment). Since this scheme covers those receiving PIP, Maya will receive the full £250.
Jason is only taking contribution-based ESA, and is not getting any other eligible benefits. So he will not get this payment.
Joint households and joint claim rules
If a spouse or two partners are jointly taking benefits under Universal Credit, they will receive £250 only once, not separately.
This would avoid cases of duplication but it has also been ensured that all needy households should be helped.
Make that your and your partners name, bank account details and addresses on the DWP or HMRC portal is up to date.
What to do to be ready?
The scheme does not require any forms to be completed; nevertheless, you need to remember a few points:
- Update your information: Check that the details in your bank account and contact details are current on the DWP or HMRC online site.
- Look out in June: You can get SMS, letters or mobile app messages.
- Check bank accounts: Lines to look out for in your account, received between 20-30 June include: DWP COL June or HMRC COL June.
- Venture to the government site: You are lost? Go to gov.uk/cost-of-living-payment.
Frequently asked questions (FAQs)
Q1: When will this payment be made?
This will be transferred directly into your bank account between 20 and 30 June 2025.
Q2: Will this affect my other benefits?
No, it is tax-free and will not affect any other benefits.
Q3: What if I was not receiving any benefits in January–February 2025?
Then you are not eligible for this support. You had to be eligible during the period of receiving benefits.
Q4: If my partner and I are both taking UC, will we receive £250 each?
No, this is a single payment per household, not separate payments.
Q5: How will I know if I will receive this money?
You will receive a notification from the DWP or HMRC and your bank account will confirm it.
Conclusion: Why is this help necessary?
At a time when the prices of every essential commodity are rising – like milk, flour, electricity, petrol – this £250 help from the government can be helpful in meeting small but necessary expenses.
This is not a permanent solution, but it is definitely a small relief that can give you relief from financial pressure for some time. The special thing is that you do not have to do anything for this – neither fill any form, nor call anyone.
Just make sure that all your information is updated and you meet the eligibility conditions.
This move of the government shows that the government is ready to support its citizens in difficult times. So if you are eligible, then sit back and wait for this amount to reach your account soon.
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.