UK £300 Second Cost of Living Payment: The UK government has rolled out a fresh round of financial support in the form of the UK £300 Second Cost of Living Payment this May 2025. With inflation and household costs still stretching budgets, this second instalment of assistance is part of the broader effort to protect low-income and vulnerable households. The payment is designed to ease the pressure of basic expenses like energy bills, food, and transport, helping families cope during uncertain economic times.
The UK £300 Second Cost of Living Payment is being managed by the Department for Work and Pensions (DWP) and HMRC. This targeted aid package is part of the ongoing cost-of-living strategy for 2025 and will be automatically distributed to eligible benefit claimants. In this article, we break down who qualifies, when payments will be made, and what steps recipients should take to ensure smooth delivery.
UK £300 Second Cost of Living Payment
The UK £300 Second Cost of Living Payment is aimed at providing direct support to low-income individuals and families affected by rising living expenses. Set to be distributed automatically between May 12 and May 28, 2025, this payment does not require any application. Eligible recipients include those on benefits such as Universal Credit, Pension Credit, Income Support, income-based JSA or ESA, and certain Tax Credits. The funds will be deposited directly into the same bank accounts used for regular benefit payments, appearing as “DWP COL” or “HMRC COLS.” It’s essential for claimants to ensure their details are up to date.
Overview Table: UK £300 Second Cost of Living Payment May 2025
| Detail | Information |
| Payment Amount | £300 |
| Payment Window | May 12 to May 28, 2025 |
| Issuing Agencies | DWP and HMRC |
| Payment Method | Direct bank deposit |
| Who Qualifies | Universal Credit, Income-based JSA/ESA, Pension Credit, Income Support, Tax Credits |
| Application Needed | No – payments are automatic |
| Reference on Bank Statement | “DWP COL” or “HMRC COLS” |
| Assessment Period | Yet to be officially confirmed |
Who Qualifies for the £300 Second Cost of Living Payment?
Eligibility for the UK £300 Second Cost of Living Payment is based on receiving certain means-tested benefits during a qualifying period, which will be announced soon. If you’re currently receiving one of the following, you may be eligible:
- Universal Credit (single or joint claimants)
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Pension Credit
- Income Support
- Working Tax Credit or Child Tax Credit (administered by HMRC)
It’s worth noting that people only receiving contribution-based JSA or ESA will not be eligible unless they also qualify for the income-based version. The wide eligibility coverage means that individuals on low income—whether unemployed, working part-time, retired, or supporting children—are all included in this round of support.
Payment Timeline and Method
The DWP has confirmed that the UK £300 Second Cost of Living Payment will be delivered between May 12 and May 28, 2025. Claimants don’t need to fill out any forms or submit an application. The payment will be deposited directly into the bank account where claimants usually receive their benefits.
You might notice the payment under references like “DWP COL” or “HMRC COLS” depending on the department responsible for your benefits.
To ensure timely delivery:
- Log in to your DWP or HMRC online account and confirm your banking details are accurate.
- Update your address or contact info if you’ve moved recently.
- Make sure your benefit claim is active during the assessment period once it’s announced.
Importance of the £300 Support Payment
This payment is more than just a temporary relief—it’s a critical financial lifeline for millions. The UK £300 Second Cost of Living Payment allows struggling households to keep up with everyday expenses, such as:
- Gas, electricity, and water bills
- Grocery and food shopping
- Petrol or transport fares
- Childcare or school-related expenses
By providing this type of targeted aid, the government aims to reduce the financial pressure on households and minimise reliance on loans or credit during tough times. It also reflects a broader recognition of how rising prices continue to impact day-to-day life for working-class families and pensioners alike.
Other Financial Support Schemes Available
In addition to the second cost-of-living payment, several other support schemes remain in place across the UK to help ease financial burdens:
- Warm Home Discount – Helps eligible households with their heating bills during the colder months.
- Household Support Fund – Available via local councils for those facing immediate financial hardship.
- Winter Fuel Payment – An annual payment to older people to help with heating costs.
- Free School Meals and Holiday Food Vouchers – Designed to assist low-income families during school breaks.
These schemes complement the DWP second payment 2025, ensuring a broader safety net is available for anyone facing ongoing financial difficulty.
Frequently Asked Questions
When will the £300 second cost of living payment be issued?
The payment will be made between May 12 and May 28, 2025.
Who is eligible for the ?
Eligibility covers those receiving Universal Credit, income-based JSA, income-related ESA, Pension Credit, Income Support, and Tax Credits.
Do I need to apply?
No. If you qualify during the assessment window, the payment will be made automatically.
What if I only get contribution-based JSA or ESA?
You will not qualify unless you also receive the income-based version.
How will the money be paid?
The money will be deposited directly into your usual benefit payment account.
What should I use the £300 payment for?
It can be used for anything from utility bills and food to childcare and transport, based on your individual household needs.
Final Thought
The UK £300 Second Cost of Living Payment is a timely and essential form of support during a period when household budgets remain under constant pressure. It ensures that those most vulnerable to rising prices are not left behind. With no application process and automatic payment delivery, the process is simple and designed to be stress-free for recipients.
If you receive any of the qualifying benefits, you can expect the payment to arrive this May—just make sure your details with the DWP or HMRC are up to date. In combination with other available schemes, this support could make a significant difference to your monthly budget.
