The UK government is preparing to deliver the third and final instalment of its cost of living payment support in July 2025. This £299 payment will go to eligible low-income households and aims to provide relief as families continue facing high prices for energy, food, and everyday essentials.
This final instalment is part of a broader cost of living support plan launched in response to ongoing financial pressures caused by inflation since 2022.
Eligibility
To qualify for the £299 payment in July 2025, you must have been receiving one of the following means-tested benefits during the qualifying period from 12 May to 8 June 2025:
- Universal Credit
- Pension Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
If you only receive tax credits (working or child tax credit), your payment will be made by HMRC instead of the DWP. These payments are usually delivered a few days after the DWP rolls out its payments.
Timeline
The Department for Work and Pensions plans to issue the £299 payment between 15 July and 25 July 2025.
Here is a simplified view of the expected rollout:
| Payment Type | Rollout Period | Issuing Authority |
|---|---|---|
| Universal Credit | 15–25 July 2025 | DWP |
| Pension Credit | 15–25 July 2025 | DWP |
| Tax Credits | Late July 2025 | HMRC |
You do not need to apply for this payment. It will be issued automatically to those who are eligible, as long as their benefit claim was active during the qualifying period.
Background
This £299 payment wraps up a three-part financial aid package provided by the UK government. It began in 2024 to help vulnerable households cope with rising costs.
Here’s a quick breakdown of the payment timeline:
| Payment Round | Amount | Date Issued |
|---|---|---|
| First | £301 | Autumn 2024 |
| Second | £300 | Spring 2025 |
| Final | £299 | July 2025 |
In total, these payments provide £899 in direct support over the course of one year.
Strategy
While some argue that £899 does not go far enough in offsetting the continued rise in living expenses, the government maintains that it is part of a larger support system.
Additional help includes:
- The Energy Price Guarantee, helping households manage heating and electricity bills
- Increases to the Local Housing Allowance, offering more support to renters
- Household Support Fund, distributed by local councils for essential costs like food and energy
Together, these programs aim to relieve some of the financial burden faced by low-income households.
Missed
If you believe you are eligible for the £299 payment but do not receive it by the end of July 2025, here’s what you should do:
- Double-check your eligibility, especially for the qualifying dates (12 May to 8 June 2025)
- Ensure your contact and bank details are correct with DWP or HMRC
- Wait a few more working days to account for any banking or processing delays
- Contact DWP or HMRC directly if your payment still hasn’t arrived
Having accurate information on file is crucial to avoiding missed or delayed payments.
The £299 cost of living payment is the final push in the current support package, and for many households, it may arrive just in time. Since the payment is automatic, make sure your benefit claim and contact information are up to date.
For those continuing to struggle, this assistance offers at least a short-term safety net during uncertain economic times.
FAQs
Who gets the £299 DWP payment?
Anyone on eligible benefits between 12 May and 8 June 2025.
When will the payment be made?
Between 15 and 25 July 2025 for most DWP benefits.
Do I need to apply for the payment?
No, it will be paid automatically to eligible claimants.
What if I receive tax credits only?
HMRC will issue your payment separately in late July.
What should I do if I don’t get paid?
Check eligibility, wait a few days, then contact DWP or HMRC.
