As of May 2025, the UK government continues to provide targeted cost of living assistance to support vulnerable households amid ongoing economic pressures. The £650 Cost of Living Payment is a key component of this support. It is aimed at helping low-income individuals and families deal with the rising cost of energy, food, and essential living expenses. This non-taxable, one-off payment is distributed in multiple instalments throughout the year and does not impact any existing benefits.
Who Is Eligible for the £650 Payment?
Eligibility is based primarily on recipients of certain means-tested benefits during a specified qualifying period. As of the latest guidance in May 2025, those receiving the following benefits are generally eligible:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit and Working Tax Credit (administered by HMRC)
Claimants must have received a payment, or a nil award due to earnings but still maintained entitlement, during a qualifying period set by the Department for Work and Pensions (DWP). It is important to check your award notices or account portals to verify eligibility.
Payment Schedule and Method
The DWP and HMRC are delivering the £650 support in three separate instalments. Payment windows are announced closer to the disbursement period, but the May 2025 update confirms the following schedule:
| Instalment | Amount | Issued By | Estimated Payment Window |
|---|---|---|---|
| 1st | £301 | DWP/HMRC | January – February 2025 |
| 2nd | £311 | DWP/HMRC | April – May 2025 |
| 3rd | £38 | DWP/HMRC | September 2025 (TBC) |
Payments are made automatically into the bank accounts associated with benefit claims. No separate application is required, though it is critical to keep personal and banking details updated in your benefits profile.
How to Apply or Report Missing Payments
There is no need to apply separately for the £650 Cost of Living Payment if you meet the eligibility criteria. However, if you believe you are eligible and have not received your instalment within the expected payment window, you should:
- Double-check eligibility and payment dates.
- Log into your benefits account (Universal Credit, HMRC, or Pension Service).
- Contact the relevant helpline (DWP or HMRC) to report a missing payment.
- Keep all correspondence and confirmation numbers for follow-up.
Delays may occur due to bank holidays, incorrect details, or review cases. Ensure that all contact information and banking records are current to prevent issues.
Additional Support and What to Watch For
Beyond the £650 payment, additional schemes are in place in 2025 to cushion rising living costs:
- Winter Fuel Payments: Enhanced for pensioners.
- Household Support Fund: Local councils offer emergency aid.
- Disability Cost of Living Payment: Extra support for those on disability benefits.
Be aware of scams. The government will never ask for personal details by text or email regarding cost of living payments. If in doubt, consult GOV.UK directly.
Conclusion
With economic conditions remaining challenging in May 2025, the £650 Cost of Living Payment continues to play a crucial role in supporting millions across the UK. Keeping informed about eligibility, maintaining updated records, and knowing how to report missing payments are essential to receiving this support without disruption.
FAQ
What is the qualifying period for the second £650 instalment?
The qualifying period for the second £311 instalment typically falls in February or March 2025. Exact dates are announced by the DWP closer to payment time.
Can I get the payment if I only started receiving benefits recently?
You may still qualify if you began receiving eligible benefits during the designated qualifying period. Check your benefit start date and cross-reference it with official payment windows.
Will this payment affect my other benefits or tax?
No, the £650 Cost of Living Payment is non-taxable and does not impact your entitlement to other benefits.
How do I avoid scams related to cost of living payments?
Always verify messages claiming to be from DWP or HMRC. Do not click links in texts or emails. Report suspicious messages to phishing@hmrc.gov.uk or contact DWP directly.
Is there extra help for people with disabilities?
Yes, individuals receiving qualifying disability benefits may receive an additional Disability Cost of Living Payment, which is separate from the £650 support.
Click here to know more.