JohnWayne
The UK Government has confirmed a £650 cost of living support payment to help millions of households facing financial pressure. Scheduled for mid-August 2025, this payment aims to ease the burden of rising inflation, high energy bills, and everyday essentials.
Unlike previous phased schemes, this year’s payment will be issued as a single lump sum, making it a timely boost for struggling families.
What Is the £650 Cost of Living Support?
The £650 cost of living support is a one-off, non-taxable payment provided to eligible households. It is designed to directly help those who rely on means-tested benefits and are most affected by the ongoing cost-of-living crisis.
The payment does not affect other benefit entitlements and is issued automatically, meaning recipients do not need to apply.
Eligibility Criteria
To receive the payment, individuals must have been entitled to specific benefits during the qualifying period from 1 March to 31 May 2025. Eligible benefits 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
It’s important to note that recipients of non-means-tested benefits such as the State Pension, Personal Independence Payment (PIP), or Disability Living Allowance (DLA) will not qualify for this payment, though they may access other forms of support.
Payment Dates
The government has announced that payments will be made between 13 August and 29 August 2025. The money will be transferred directly into the same bank accounts where benefits are usually paid.
Here’s a quick overview:
| Detail | Information |
|---|---|
| Amount | £650 lump sum |
| Payment Window | 13 August – 29 August 2025 |
| Payment Method | Direct deposit to benefit account |
| Application Needed? | No – automatic payment |
| Who Qualifies | Households on specified means-tested benefits |
How Will the £650 Payment Help?
The support is intended to reduce the financial strain caused by inflation and high costs. Households may use the funds to:
- Pay energy and utility bills to avoid debt
- Cover rent or mortgage arrears
- Manage grocery and daily expenses amid food price rises
- Support transportation costs for work or school
- Address health-related or urgent household needs
By targeting low-income households, this scheme ensures those most vulnerable receive meaningful financial relief.
What If You Don’t Receive the Payment?
Since the payment is automatic, no application is needed. However, if you believe you qualify but do not see the payment by late August, you should contact the Department for Work and Pensions (DWP) to check your eligibility status.
Households are also advised to remain cautious of fraudulent scams. The government will never ask for your bank details or request any upfront fees in relation to this payment.
The £650 cost of living support payment in August 2025 is a critical lifeline for millions of UK households.
With rising costs of food, housing, and energy, this automatic and tax-free payment ensures that those most in need receive timely financial help.
By understanding the eligibility rules, payment dates, and purpose of this support, households can better prepare for this much-needed boost.
FAQs
Do I need to apply for the £650 cost of living payment?
No. The payment will be made automatically to those who qualify.
Can couples receive two payments?
No. The £650 payment is issued per household, not per individual.
What happens if I only started claiming benefits after May 2025?
If you did not meet the qualifying period, you will not be eligible for this payment.