£165 Cost of Living Payment in July 2025 – The period of economic crisis in Britain is still not completely over. The continuous economic downturn between 2024-25 has badly affected the lives of common people. Inflation, high energy bills and falling incomes have shaken people’s budgets. In such difficult times, the government has announced a new assistance scheme to provide relief to the public, under which a lump sum of £165 will be given to eligible citizens from July 2025. The government hopes that even though this amount may not be big, it will definitely prove helpful in difficult times.
The aim of this scheme is to provide financial support to those families who have been most affected by this recession. Even though this amount is much less than the interest rates and inflation, the government still believes that it will definitely provide some relief to the needy people.
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Who will be eligible for this payment?
The UK Government’s Department for Work and Pensions has set strict eligibility conditions for this scheme. Only those people will be able to get help under this scheme who are already taking advantage of any government assistance scheme. This includes benefits like Universal Credit, Pension Credit, Income Based Jobseeker Allowance, Income Support, Working Tax Credit and Child Tax Credit. This time the government has made the eligibility rules stricter than before.
This time it has been made mandatory that the beneficiary should be a recipient of one of these benefits continuously between 26 January 2025 and 25 February 2025. If a person is not taking eligible benefits in this period, then he will not be eligible for this payment. The government estimates that about 80 lakh families will benefit from this scheme, although this number is slightly less than in previous years.
When and how will the payment be received?
According to the government, the assistance amount of £165 will be transferred to the bank accounts of eligible citizens from 8 July 2025. People who get benefits through the Department for Work and Pensions (DWP), this amount will appear in their accounts under the name “DWP COL”. On the other hand, people who get only tax credits and are not eligible for any other benefits, this payment will be made by HMRC (Her Majesty’s Revenue and Customs) from 16 July 2025. This amount will also be recorded in their account under the name “HMRC COL”.
Along with this, the government has warned people that if anyone asks for bank details through phone, email or message, then be cautious. The government does not ask for personal information for this payment. If someone asks for bank details by claiming to be a government official, be alert immediately and contact the concerned department.
Why was this scheme needed?
There has been some improvement in the inflation rate in Britain, but the ground reality is that the economic condition of the common people still remains weak. According to the latest data, the average income in the country has declined by about 2.9 percent. At the same time, the prices of food items have been recorded at 4.7 percent in January 2025, which may be less than before but is still a cause of concern for many people.
There has also been some reduction in energy bills, but this reduction is not at the level that the burden on common families feels lighter. The expenses with which people were easily running the house before the Kovid-19 epidemic, now the same expenses have worsened their financial condition. The savings of many families have been exhausted and they are still struggling to meet their daily needs. This is the reason why the government had to announce this temporary relief scheme.
What is different in this time’s plan?
In 2022-23, when the energy crisis was at its peak, the government provided assistance of up to £1,350, but this time this amount has been kept at only £165. The main reason for this is the government’s financial deficit. This time the government has fixed this amount while keeping control over its expenses. The government believes that now the circumstances are not as serious as before, so the assistance amount has been kept limited.
Apart from this, the eligibility conditions have also been changed. Earlier it was sufficient to get the benefit on any one day, but now it has been made mandatory to get the benefit of any eligible scheme continuously for a period of one month. This will make it easier for the government to ensure that this relief reaches the right people.
Will the amount of £165 really help?
People’s opinions are divided about this assistance amount. Some people consider it a small but necessary help, while some people say that this amount is insufficient to meet their real needs. A pension credit beneficiary said that £165 will definitely help in paying the energy bill for the month but even after this, there will be concern about the rest of the expenses.
At the same time, a single mother from Manchester told that with this money she will be able to meet the school related needs of her children. However, she also admitted that this amount is not a big help but it is definitely a relief in the current situation. Economic experts also say that this scheme provides immediate relief but a long-term solution is needed so that common people can get permanent financial security.
What will happen next?
The government has not said anything clearly about any other such assistance scheme in the future. The Treasury Department says that future plans will depend on the economic condition of the country and government resources. Some experts estimate that the inflation rate may fall further in 2025, but the economic condition of poor and middle class families will improve completely only by mid-2026.
Food banks and debt relief services have begun preparing now as they anticipate that economic problems will continue in 2025. Organizations such as the Trussell Trust have already said that despite this relief money, people will have to rely on food banks for food and drink.
Conclusion
The £165 Cost of Living Payment to be given in July 2025 may not be a big relief package, but it will definitely provide support to those who are currently going through financial difficulties. This initiative of the government will provide some relief to the needy families. However, the need for a long-term solution still remains. All beneficiaries are advised to be cautious of any fraud for this payment and contact the concerned department if they do not receive the payment on time.
FAQs On £165 Cost of Living Payment in July 2025
Q. Who is eligible for the £165 Cost of Living Payment?
A. People receiving Universal Credit, Pension Credit, Income-based JSA or ESA, Income Support, Working Tax Credit, or Child Tax Credit during the qualifying period (26 Jan – 25 Feb 2025).
Q. When will the £165 payment be made?
A. Payments will start from 8 July 2025 for DWP claimants and from 16 July 2025 for HMRC claimants.
Q. How will the payment appear in bank accounts?
A. It will show as “DWP COL” for DWP benefits and “HMRC COL” for Tax Credit recipients.
