The Department for Work and Pensions (DWP) has officially confirmed a £300 Cost of Living Payment for August 2025. This announcement comes as a relief to millions of UK residents who are struggling with inflation, rising energy bills, and overall financial stress. If you’ve been waiting for support, this payment might just be for you. But are you on the list of eligible recipients?
This article will break down everything you need to know — who qualifies, when payments will arrive, how to check your eligibility, and what you should do if you don’t receive it. If you live in the UK and claim benefits, read this carefully.
What is the £300 August Payment?
The £300 payment is part of the government’s ongoing Cost of Living support scheme. This support was first introduced in 2022 and has continued each year to help vulnerable households deal with inflation and the ongoing cost of living crisis.
For 2025, this is the third instalment in a series of payments planned for the year. The £300 is not a loan, and you do not need to repay it. It is a tax-free grant, which is paid automatically if you qualify.
Who will get the payment?
DWP has stated that the £300 payment will go to people who receive specific means-tested benefits. These include:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
If you’re receiving any of these benefits during the qualifying period (we’ll cover this shortly), you’re likely eligible for the payment.
What is the qualifying period?
To receive the £300 payment, you must have been entitled to one of the eligible benefits between 10 June 2025 and 9 July 2025. This is known as the qualifying period.
If your claim is backdated to cover these dates, you may still receive the payment even if you were not receiving the benefit during that period.
When will payments be made?
DWP has confirmed that payments will start from Monday, 19 August 2025, and will continue to roll out until Friday, 30 August 2025.
This will be an automatic payment, which means you do not need to apply or fill out any forms. It will be sent directly into the bank account where you usually receive your benefit payments.
How will the payment appear in your account?
The payment will show up with a reference code on your bank statement. For most people, it will appear as:
“DWP COL”, followed by your National Insurance number.
This is important because many people receive multiple benefits, and knowing how the payment appears helps you confirm it’s the correct one.
What if you receive Tax Credits?
If you receive only Working Tax Credit or Child Tax Credit and do not receive other benefits through DWP, then your payment will come from HMRC, not DWP.
In that case, HMRC has confirmed that payments will begin a few days after the DWP schedule — likely around the last week of August or early September. It will also be paid automatically to your registered bank account.
What if you don’t receive the payment?
If you believe you qualify but have not received the £300 by mid-September, you can contact the DWP or HMRC (depending on which benefit you receive).
But first, make sure:
- You were eligible during the qualifying period
- Your benefits were active or backdated
- Your bank details were up to date
Sometimes delays happen because of bank holidays, weekends, or incorrect account information.
Can new claimants receive this payment?
No, if you apply for benefits now, you will not qualify for the £300 August payment unless your application is backdated to include the qualifying period (10 June – 9 July 2025).
However, you may qualify for the next Cost of Living payment if another one is scheduled for late 2025 or early 2026.
Does this affect other benefits?
No, receiving the £300 does not reduce any other benefit payments. It is not treated as income, and does not affect your benefit cap.
So whether you’re on Universal Credit, Pension Credit, or any other eligible benefit, this extra support will be in addition to your regular payments.
Is it taxable?
No, the £300 payment is completely tax-free. You don’t need to declare it as income for tax purposes, and it will not be considered part of your taxable income at the end of the year.
Are there other payments coming?
Yes. The government has indicated there may be further support in winter 2025, especially for pensioners and people with disabilities.
While dates are not officially confirmed yet, the following payments are being considered:
- Winter Fuel Payment
- Cold Weather Payment (if temperature thresholds are met)
- A possible final Cost of Living Payment in December
You should keep an eye on GOV.UK and official DWP announcements to stay updated.
What if you’re not eligible?
If you don’t receive any of the qualifying benefits, you will not receive the £300 payment. However, you might still be eligible for other support schemes such as:
- Local Council Household Support Funds
- Energy Bill Discount Schemes
- Charitable grants via local authorities or non-profits
It’s worth checking with your local council or Citizen’s Advice Bureau to see what help is available.
Common reasons for missing the payment
Many people miss out on these payments due to small issues. Some of the common reasons include:
- Bank account not updated with DWP
- Change in benefit status not recorded in time
- Tax Credits being managed separately by HMRC
- Misunderstanding between contribution-based and income-based benefits
Always double-check your records and make sure your information is current with DWP or HMRC.
How to stay informed?
The best way to stay informed is to:
- Regularly check GOV.UK for updates
- Follow DWP and HMRC official social media pages
- Sign up for newsletters from trusted UK news sources
- Use benefit calculators to check your current entitlement
Final Thoughts
The £300 August payment from DWP is a crucial support for millions across the UK during ongoing financial pressure. If you’re on any of the qualifying benefits and were eligible during the qualifying period, there’s nothing more you need to do — just wait for the payment to arrive.
If you’re unsure whether you qualify, now is the time to review your benefit records and reach out for help if needed. Every pound counts right now, and this support could ease the burden for many households.
