£500 Cost of Living Support Confirmed – Who is Eligible to get this Payment in August 2025?

Introduction: In the summer of 2025, when the cost of living has once again become a burden on the budget of common people, the UK government has made a relief announcement a one-time Cost of Living Support Payment of £500. This assistance amount will be sent directly to the accounts of eligible citizens in August 2025. The government aims to provide some relief to the low income group, pensioners, unemployed and financially struggling families through this payment from the rising cost of living.

In this article, we will explain in detail who will get this assistance amount, what are the eligibility conditions, what are the payment dates and what things are important to keep in mind.

Why is this £500 Cost of Living Support being given?

Due to inflation, increase in energy bills, increase in food prices and continuous surge in housing expenses, the financial condition of middle and lower class families in the UK has been shaken. In view of this situation, the government has decided to give another installment of Cost of Living Support Payment.

This assistance amount of £500 will be given specifically to those who already come under certain special government benefit schemes (means-tested benefits).

Eligibility Criteria

If you are wondering whether you are eligible for this payment, then here we are giving detailed information about the eligibility:

• Universal Credit
• Working tax credits Manual Income-based Jobseeker Support (JSA)
• Employment and Support Allowance (ESA) related to income
• Income Support
• Pension Credit
• Working Tax Credit
• Child Tax Credit

Note: If you are only on New Style JSA, New Style ESA or Contributory ESA, and you don’t have a means-tested benefit, you will not be eligible for this payment.

Will both partners get a payment?

If you are a couple receiving benefits jointly, there will only be one payment per household. This will be sent to the person in whose name the benefit account is registered.

What about pensioners?

• If you claim Pension Credit by 30 June 2025, and your application is approved, you will still be paid this £500 amount, even if you receive the payment in August.
• The government has made a provision for “backdated eligibility”, so that seniors who apply for Pension Credit in time can also join this scheme.

Payment dates (Payment Schedule)

According to the information shared by HMRC and DWP:

• The amount of £500 will be transferred directly to the bank account in the second or third week of August 2025.
• The payment will be made automatically – you do not need to apply for it separately.
• Payments to DWP beneficiaries will be made by DWP and those with Tax Credit will be paid by HMRC.
• Tip: Keep your bank account and benefit account details up to date to avoid any mistakes.

How to get paid?

No new application is required for this payment. If you are eligible and receiving benefits by the date mentioned above:

• You may receive a letter or SMS from the DWP or HMRC.
• The payment will come straight into your bank account, just like other benefits.
• The payment will usually appear on a bank statement as “DWP COL” or “HMRC COL Payment”.

Who won’t get this money?

There will be some people who won’t be eligible for this payment:

• Those who only have Contributory ESA or New Style JSA
• Those who don’t have a benefit account or haven’t made a claim by the end of June 2025
• Those whose benefit claim has been rejected
• Those who have been in the UK for a limited time or are under immigration control

Are there any special things Universal Credit claimants should be aware of?

Yes. If you are covered under Universal Credit, your eligibility will be decided based on your payment assessment period. Therefore, the payment may not arrive on your account in case your income was too large in a time range between 1 June and 30 June, 2025.

It is because of this reason that many professionals are recommending that when you are self-employed, or your wages are not steady, to monitor your expenditure and other benefits in this time frame.

Impact of this payment on other benefits?

No, this one-off payment of £500 will not affect your other benefits or tax credits. It is tax free, means-tested benefit neutral, and non-repayable.

What does the government say?

The government says that this payment is a direct support for families struggling with the rising cost of living. The DWP has also indicated that if the situation does not improve in the future, more similar support schemes may also be introduced.

The government’s aim is that low-income citizens get relief in electricity, gas, food and other essential expenses and they do not get trapped in financial crisis.

Important Tips for Beneficiaries

• Check your Universal Credit or Pension Credit account regularly.
• Keep bank details and NI number up to date.
• Avoid fake calls and scams DWP will not ask for your personal information over the phone for any payment.
• If you have not received a payment but are eligible, contact DWP in September 2025.

Conclusion

The £500 Cost of Living Support Payment due in August 2025 is an important step by the government to support the economically weaker sections in times of rising inflation. If you already fall under a means-tested benefit, you will definitely get this support.

This is also an opportunity for those who have not yet been able to apply for Pension Credit or other benefits – they can now apply as soon as possible and become eligible for this payment.

FAQs