DWP £299 Cost of Living Payment: As the cost of essentials like food, housing, and energy continues to rise, millions of low-income households across the UK are set to receive crucial financial assistance. The Department for Work and Pensions (DWP) has confirmed that a £299 cost-of-living payment will be distributed in July 2025. This payment is part of the UK government’s ongoing effort to help vulnerable citizens manage inflation-driven expenses, especially during the high-cost period following summer.
The DWP £299 Cost of Living Payment is the third and final instalment in the government’s 2024/2025 cost of living support package. Designed to provide relief without requiring an application, this payment targets individuals and families who receive specific means-tested benefits. In this article, you’ll find full details on eligibility, payment dates, how the funds will be delivered, and other updates that affect benefit claimants in the coming months.
DWP £299 Cost of Living Payment
Eligibility for the DWP £299 Cost of Living Payment is based on whether individuals were entitled to certain means-tested benefits during a qualifying period in late May or early June 2025. These benefits include Universal Credit, Income-based JSA, ESA, Pension Credit, and Tax Credits. If you met the eligibility criteria during that window, the payment will be made automatically, with no need to apply. It will appear as “DWP COL” or “HMRC COL” on your bank statement, depending on which agency handles your benefits. This ensures clarity and helps distinguish it from your regular payments.
DWP £299 Cost of Living Payment Overview Table
| Aspect | Details |
| Payment Amount | £299 |
| Payment Date | From 15 July 2025, over a 3-week rollout |
| Eligible Benefits | Universal Credit, Income-based JSA, Income-related ESA, Income Support, Pension Credit, Working Tax Credit, Child Tax Credit |
| How It’s Paid | Automatically into the same bank account used for regular benefit payments |
| Tax Credit Recipients | Paid slightly later, by end of July 2025 |
| Application Required? | No – issued automatically |
| Listed As | “DWP COL” or “HMRC COL” on bank statements |
Payment Schedule and Distribution Process
The payment rollout will start on Monday, 15 July 2025, and continue for approximately three weeks. This means most claimants will receive the payment by early August. Those receiving Tax Credits—which are administered by HMRC instead of DWP—can expect their payments slightly later, around the final week of July.
No action is required by eligible claimants. The funds will be transferred to the same bank account where regular benefits are normally paid. It’s advised to check your account regularly during the rollout period and ensure your bank details are up to date with the relevant department.
Who Qualifies for the £299 Payment?
To receive the DWP £299 Cost of Living Payment, you must have been entitled to one of the following means-tested benefits during the qualifying window (expected to be late May to early June 2025):
- 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
It’s important to note that eligibility is based on entitlement, not the actual payment date. So even if your benefit payment was delayed, you may still qualify if your entitlement existed during the set window.
If you didn’t receive the earlier cost of living payments (the £301 in February and £300 in April), you can still receive this final instalment, as long as you meet the eligibility for the July round.
Breakdown of the 2024/2025 Cost of Living Support Package
The £299 payment in July completes the three-part financial assistance plan the UK government introduced to support low-income households during continued economic challenges. Here’s a quick look at all three instalments:
| Instalment | Amount | Expected Payment Month | Applicable To |
| First | £301 | February 2025 | Means-tested benefit claimants |
| Second | £300 | April 2025 | Means-tested benefit claimants |
| Third | £299 | July 2025 | Means-tested benefit claimants |
These payments have been structured to offer consistent support across the year, helping families cover rising utility bills, food costs, and other necessities.
Wider Impact on UK Benefits – July 2025 Updates
The DWP £299 Cost of Living Payment is just one part of a broader package of changes expected to impact UK benefits in July 2025. Several policy adjustments are also being implemented, including:
- Updated Universal Credit taper rates to improve take-home income for workers
- Increases in Local Housing Allowance caps to ease rent pressure
- New disability support measures to assist people with additional needs
While the £299 payment provides immediate help, experts caution that deeper reforms are needed to address the root causes of financial hardship. Rising living costs continue to outpace benefit increases for many households.
Other Support Options Available
Apart from direct financial assistance, the DWP is also encouraging claimants to use:
- Online benefits calculators to ensure they’re receiving all they’re entitled to
- Local council hardship funds that offer one-off grants for emergencies
- Enhanced budgeting tools to help with planning around irregular income
Checking with your local authority website can uncover extra help that’s not always widely advertised.
What If You Don’t Receive the Payment?
If you believe you’re eligible but don’t receive the payment by mid-August, take the following steps:
- Check your benefit entitlement dates to confirm eligibility
- Review your bank statement for the “DWP COL” or “HMRC COL” entry
- Wait until the full payment window closes (early August)
- Contact DWP or HMRC through their official channels
There’s no separate application process, but missing payments can be resolved by verifying eligibility and contacting the relevant agency.
FAQs About the DWP £299 Cost of Living Payment
Q1. What is the DWP £299 Cost of Living Payment for July 2025?
It’s the third instalment in the UK government’s cost of living support scheme, aimed at low-income and vulnerable households.
Q2. When will I receive the payment?
Between 15 July and early August 2025. Tax Credit recipients may receive it toward the end of July.
Q3. Do I need to apply to get this payment?
No. The payment is issued automatically to those who qualify.
Q4. What if I didn’t receive the first or second payments?
You can still get this payment if you meet the eligibility criteria for this round.
Q5. Will this affect my regular benefit payments?
No. The £299 payment is separate and will not impact your regular benefit amount.
Final Thought
The DWP £299 Cost of Living Payment set for July 2025 comes as a welcome relief for many households struggling with the ongoing effects of inflation and rising bills. It’s a direct, automatic support measure that requires no action from eligible recipients. As the final piece in the government’s cost of living support series, it highlights continued efforts to aid the most financially vulnerable. Be sure to check your bank statements, stay informed via DWP updates, and explore all other available support options in your area.
If this article helped clarify your doubts, feel free to share it with others or comment with your questions. For more helpful updates, check out your benefits calculator or stay tuned for future announcements from the DWP.
