£250 Cost of Living Payment Confirmed for December 2025 — Who Gets It and When Will It Arrive?

The UK cost of living crisis continues to impact millions of households, especially pensioners, low-income families, and benefit claimants. To provide relief during the challenging winter months, the UK Government has confirmed a one-off £250 Cost of Living Payment, due in December 2025, aimed at helping people manage rising expenses, particularly heating, food, and housing bills.

This support is being delivered via the Department for Work and Pensions (DWP) and HM Revenue & Customs (HMRC). Here’s everything you need to know — who qualifies, when the payment will be made, how it will be paid, and what to do if you don’t receive it.

What Is the £250 Cost of Living Payment?

The £250 Cost of Living Payment is a tax-free, non-repayable, one-time government support payment. It is designed to help vulnerable and low-income households navigate winter 2025’s rising costs.

Key points:

• It’s not a loan
• It won’t affect your existing benefits
• It won’t count as income for tax purposes
• It won’t reduce other support you receive

This payment follows earlier rounds of cost of living assistance introduced in previous years and forms part of the broader support strategy to help households deal with inflation, energy costs, and food prices.

When Will the £250 Payment Be Paid?

The government has confirmed the payment window for the £250 Cost of Living Payment is set for December 2025, just before the Christmas period, when household costs typically spike.

Expected payment window:

• Early to mid-December 2025
• Automatic payment — no need to apply
• Money deposited directly into your bank account

Most eligible individuals and families should receive the payment before Christmas, allowing time to plan for winter bills, food expenses, and other urgent costs.

Who Is Eligible for the £250 Cost of Living Payment?

Eligibility for the £250 payment depends on receiving certain means-tested benefits during a qualifying period (exact dates to be announced closer to December 2025). You may be eligible if you were receiving at least one of the following:

• Universal Credit
• Pension Credit
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Working Tax Credit
• Child Tax Credit

You must have been receiving a payment, or had an eligible claim during the official qualifying period set by the DWP or HMRC.

Support for Pensioners: Are You Eligible?

Pensioners are one of the key target groups for the December 2025 payment — but not all pensioners will qualify.

You may be eligible if:

• You receive Pension Credit
• You’re on a low income and meet the means-tested benefit criteria
• You get Housing Benefit alongside Pension Credit

Important: Merely receiving the State Pension is not enough. However, many pensioners who believe they don’t qualify may actually be eligible for Pension Credit, which in turn unlocks access to this £250 payment.

Check your eligibility — it could also give access to free TV licences, council tax reductions, and Cold Weather Payments.

Universal Credit Claimants: What You Should Know

If you’re on Universal Credit, eligibility depends on whether your claim was active during the qualifying period.

You may qualify if you’re:

• Working but earning below a certain threshold
• Unemployed
• Caring for a dependent
• Living with a disability or long-term illness
• Responsible for children or dependents

You don’t need to apply separately — if you’re eligible, the £250 payment will arrive automatically in your account.

Is an Application Required?

No. You do not need to apply for the £250 Cost of Living Payment.

The government will use existing benefit records to determine eligibility. If you qualify:

• No forms to fill out
• No need to contact DWP or HMRC
• No need to resubmit bank details

The money will be paid automatically into the same bank account you normally receive benefits or tax credits in.

How Will the Payment Appear in Your Bank Statement?

Once the payment is made, it will likely show up under a reference such as:

• “DWP COL”
• “HMRC COLS”
• “Cost of Living Payment”

The reference may vary depending on which department processes your payment.

Will the £250 Payment Affect My Other Benefits?

No — this payment:

• Will not affect existing benefits
• Is not treated as income or savings
• Will not impact Universal Credit or Tax Credit calculations

You can use the money however you choose — on bills, groceries, transport, or other urgent expenses.

What If You Don’t Receive the Payment?

If you believe you’re eligible but do not receive the payment by the end of December 2025, here’s what you should do:

1. Check your benefit status during the qualifying period
2. Verify your bank account details are up to date
3. Review official letters or messages from DWP/HMRC

If everything seems correct, you can:

• Contact DWP (for Universal Credit, Pension Credit, ESA, JSA)
• Contact HMRC (for Tax Credits)

There’s usually a follow-up period during which delayed or missing payments can be investigated and resolved.

Why Might Someone Miss the Payment?

Common reasons for not receiving the £250 payment include:

• Not receiving a qualifying benefit during the official qualifying period
• Suspended or closed benefit claims
• Changes in household income or circumstances
• Incorrect or outdated bank details

To avoid this, make sure your benefit records are current, and promptly report any changes.

This Payment Is Part of a Larger Support System

The £250 Cost of Living Payment is just one piece of the government’s broader effort to tackle financial pressures in 2025–26.

You may also be eligible for:

• Winter Fuel Payments
• Cold Weather Payments
• Council Tax support
• Energy bill assistance
• Local council hardship schemes

Make sure to check for other support options — multiple benefits can often be claimed at the same time.

Watch Out for Scams

Scammers often take advantage of cost of living payments to trick vulnerable people.

Remember:

• The government will never ask for your bank details by email or text
• You do not need to apply or click any links
• All payments are automatic

If you receive suspicious messages or calls about claiming this payment, do not respond and report it immediately.

What Should You Do Now?

To make sure you’re ready:

• Ensure your benefit claim is active and up to date
• Confirm your bank account details with DWP/HMRC
• Stay alert for official updates from the government
• Check if you’re eligible for Pension Credit if you’re a pensioner

A few minutes of checking now could help ensure you don’t miss out on this crucial support.