The UK government has launched a special scheme for those who are in some financial trouble and are struggling to meet basic needs. This scheme is not just a small help but a step to provide financial security. In June 2025, under this scheme, £250 one-time financial assistance will be given, which is called “Cost of Living Credit”.
Why was this scheme introduced?
The recent inflation and cost of living have made many people poor or increased their difficulties. Rent, electricity, water, food, medicine – all this has become expensive together. In such a situation, the government has thought that if we help a little, then people can be helped to live properly. This scheme is not just a one-time relief, but it shows that the government is taking financial security seriously.
Think of electricity bills that suddenly become huge, or fuel prices go up – when these things can put a significant dent in your budget, the UK Government will pay £250 through this scheme to give you an immediate boost. This payment is not linked to your regular benefits, such as Income Support or Universal Credit, but is separate.
How and when will you get paid?
- This is a one-off, tax-free payment
- Will be sent straight to your bank account – no form filling required
- Will be delivered in a staggered manner in June 2025
- Those receiving DWP benefits such as Universal Credit, JSA, ESA will receive payments first
- Tax credits from HMRC (such as Child Tax Credit, Working Tax Credit) will be paid by the end of June
- Transactions will usually start appearing in your bank account between 20 June and 30 June 2025
- Bank statements will show “DWP COL June” or “HMRC COL June”
- If the money doesn’t arrive, check the portal on Gov.uk first, then call DWP/HMRC and lodge a service complaint if necessary
Eligibility criteria
The main eligibility criteria for this payment is that you received a qualifying benefit between 15 January and 28 February 2025.
Benefits you may be eligible for
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
- And for the first time this year, it’s open to recipients of Disability Benefits, such as: PIP (Personal Independence Payment), DLA (Disability Living Allowance), Attendance Allowance
This advice comes from the Government looking to give more support to people who are becoming more financially burdened by life’s difficulties.
Who pays?
- DWP (Department for Work and Pensions) pays Universal Credit, JSA, ESA, and Pension Credit holders
- HMRC (Her Majesty’s Revenue and Customs) pays Tax Credit holders
This scheme is a coordinated effort to ensure that everyone who is eligible gets help.
No need for you to do it—the government will deliver it
- No application is required
- Your bank details and benefit records need to be correct
- If you don’t have up-to-date bank details—for example, a paid account has closed—update immediately on Gov.uk or contact DWP/HMRC
- Note: Contribution-based ESA or Carer’s Allowance alone is not included in this scheme
- If you’re partner is sharing under Universal Credit, you’ll get a single £250 per household
Additional government support
Along with this £250 credit, there are a few other schemes running:
- Energy Bill Support: Subsidy or discount for household electricity bills
- Household Support Fund: Local support for families in need
- Council Tax Reductions: Local tax rebates
- And yes, there’s an additional £450 payment due in June 2025 – this could be a separate scheme or part of the same scheme
FAQ
When will you get the £250 payment?
The money will be credited to your bank account between 20 June and 30 June 2025. DWP will send it first, and HMRC will send it later.
Will it count towards tax?
No, it’s completely tax-free and won’t affect your other government support or tax.
If I didn’t receive the benefit in the qualifying period?
You’re not eligible for the £250 credit. Only people who were on a benefit between 15 January and 28 February 2025 are eligible.
If I start Universal Credit on January 4?
You won’t be eligible then, because it starts in the original “qualifying period” on 15 January.
Is a partner also on Universal Credit?
Even then, you’ll get the same £250 for the whole family, rather than separately for each person.
Read more: DWP 2025-26: 4 Benefits Cancelled — Who’s Impacted?
Who can benefit—an example?
Rahul and Seema have been receiving Universal Credit continuously since January 2025. They’ll get the £250 for June 2025. Vijay takes Pension Credit and applied in March 202,5 but received the credit in January or February—so he’s eligible too. Anil was on a contribution-based ESA, so she is not eligible. Megan was on PIP (Disability Benefit) in January–February—she will also get £250.
What to do if you haven’t received the money
- First, log in to Gov.uk’s online portal
- Check your bank details or account information
- If you see any errors, such as an account that has been closed or the number is wrong, update them now
- If your bank details are correct and you still haven’t received the money, call the DWP or HMRC
- Keep a record of the conversation—Reference number and everything
- If necessary, you can go to the Citizens Advice Bureau (CAB) and get their help
Conclusion
This scheme aims to provide potential relief from the UK government to those who are struggling with inflation and living difficulties. This is a one-time help—a payment of £250 that helps you handle your day-to-day expenses like rent, electricity, food, medicine, etc.
You don’t have to do anything—the government will check eligibility and make the payment itself. This scheme is for those who had any benefit running between January–February 2025.
It is tax-free and is different from all other schemes. If you do not get the money, then you have to contact the online portal or the concerned department.
If you are, or know someone who is, on a low income or on a pension, benefits, or disability scheme, keep an eye on your bank statements and the Gov.uk portal between 20 June and 30 June 2025.
