With energy bills remaining stubbornly expensive, grocery costs continuing to rise and rent not far behind, many families across Britain have been fervently hoping for reprieve.
And now we know for sure, the Department for Work and Pensions (DWP) has announced that a £305 Cost of Living Payment is set to come in from mid-2025.
And it’s not just a number on paper — it’s money that could be the difference between struggling to get by and finally being able to breathe a little easier.
Who Would the £305 Payment Be Paid to?
This one-off £305 payment is supposed to help low-income workers and families – in particular, those who already claim their benefits based on need. Here’s a guide to who is eligible:
Universal Credit (if it applies to you within certain qualifying dates)
credit-based Jobseeker’s Allowance (JSA) (this includes both income-based and contribution-based JSA)
ESA (employer support allowance) – income related
Income Support
Pension Credit
Working Tax Credit or Child Tax Credit (if you do not get Working Tax Credit or Child Tax Credit, see page 72) – run-on from HMRC
Crucially those on contribution-based benefits only like contribution-based JSA or ESA will not be able to claim – unless they are also on a relevant benefit.
So if you are already having to stretch every pound, this extra cash is an attempt to keep you going when times are hard, in the hope they will get easier.
How and When Will It Be Paid?
The £305 payout will be sent automatically- there’s no need to apply. If you qualify, it will arrive in the same bank account where you already receive your regular benefit payments.
DWP and HMRC should make these payments from July to August 2025, but the dates could differ slightly depending on your benefit.
Each payment will show on your statement as having the reference ‘DWP COL’ or ‘HMRC COL’ depending upon who deals with your benefit.
Why This Payment Matters
Let’s face it — £305 isn’t going to change your life. But for lots of people, it’s life-stabilising.
Whether it’s topping up the electricity meter, paying off a bit of rent arrears or just filling the fridge for a week, this payment helps relieve pressure when people need it the most.
This kind of targeted help makes a real difference to single parents, carers, pensioners, and people with a disability. It’s not charity — it’s enabling, and it’s meant to account for the soaring cost of survival, not just of living.
Pros and Cons at a Glance
Pros Cons
Automatic payment (you don’t need to apply): not everyone gets this, even if they are having financial problems
Aid through tough times of austerity £305 might not go further in worse times for families
Benefits are not limited to a narrow pool of recipientsSome who qualify may slip through the cracks because of tech problems.
Does not reduce current benefits or count as income Timing of rollout could be later for some claimants
What You Should Do Now
If you think you qualify:
Check or double-check your status for the qualifying dates (which are usually announced a few months in advance).
There are no longer any employment restrictions for Universal Credit claims so you have the right to apply even if you have just been made redundant and have never claimed benefits before.
Aside from that, some people are struggling due to long waiting times for their first payment, as it can take up to five weeks to receive the initial sum.
Update your contact details with DWP or HMRC as soon as possible to avoid any delays in receiving your money. On the other hand, it might be even more difficult to keep up with your bills as a result.
Pay attention to formal statements and guidance, in particular GOV.UK or reliable news sources
And a reminder: Don’t fall for scams — someone from the DWP won’t call, text or email you asking for your personal information about this payment.
£305 DWP Cost of Living Payments are deposited soon
The £305 DWP Cost of Living Payment is unlikely to solve the wider economic struggles people are currently going through, but it’s a welcome boost.
It’s a signal from the government that, at least for now, the least fortunate aren’t being entirely forgotten.
With financial pressures unlikely to abate anytime soon, every bit helps — and for some people, that bit could mean the difference between having food on the table or a working light and less panic at the end of the month.
So if you qualify, breathe a little more easily — help is on the way.
