The Department for Work and Pensions (DWP) has announced a new round of £250 cost of living payments coming this September 2025. With energy bills, food prices, and general living costs continuing to challenge households, this support aims to provide much-needed financial relief to millions across the UK.
If you are unsure about whether you qualify, how the payment will be made, or when to expect it, this article will break everything down in simple terms.
What Is the £250 Cost of Living Payment?
The £250 cost of living payment is a one-off, tax-free support payment designed to help low-income households and vulnerable groups manage rising living expenses.
It is part of a wider government scheme that has been running since 2022, offering targeted financial support to people receiving certain means-tested benefits or pensions.
This September 2025 payment is particularly significant because it will reach households at a time when energy usage starts to rise again and inflation remains a concern.
Who Will Get the £250 Cost of Living Payment?
Not everyone will qualify for this payment. According to the DWP, eligibility is based on receiving specific benefits during a set qualifying period.
Eligible benefits include:
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Universal Credit
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Income-based Jobseeker’s Allowance (JSA)
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Income-related Employment and Support Allowance (ESA)
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Income Support
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Pension Credit
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Working Tax Credit
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Child Tax Credit
If you were entitled to any of these benefits during the qualifying dates (expected to be August 12th to September 9th, 2025), you will automatically qualify for the £250 payment.
Who Is Not Eligible?
You will not receive the payment if:
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You only receive new-style Jobseeker’s Allowance or new-style ESA (contributory benefits).
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Your Universal Credit entitlement for the qualifying period was zero (sometimes called a “nil award”).
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You are not on one of the eligible benefits.
When Will the £250 Payment Be Made?
The DWP has confirmed that payments will begin from Monday, 16th September 2025.
Most households will receive the money by the end of the month, but exact dates may vary depending on:
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Which benefit you receive
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Payment processing times with your bank
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Whether your benefit is handled by HMRC (for Tax Credits) or DWP
For example:
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Universal Credit claimants – paid by DWP directly into your usual account
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Tax Credit claimants – paid separately by HMRC, not combined with DWP payments
How Will the £250 Be Paid?
You do not need to apply for this payment. The £250 will be:
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Paid automatically into the same bank account you receive your benefits or pension
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Issued as a separate payment (you’ll see it appear with a reference such as “DWP COL” or “HMRC COL”)
This means you don’t need to fill in any forms, call the DWP, or take extra action.
Why September 2025 Matters for Households
This year’s £250 support comes at a critical time:
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Energy costs are expected to rise again before winter.
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Food inflation remains stubbornly high.
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Pensioners and families with children face increasing household expenses.
For many households, the extra £250 could mean the difference between falling into arrears or staying on top of essential bills.
How the £250 Fits into Wider Support
The September payment is just one part of the government’s wider cost of living support. Other help includes:
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Winter Fuel Payments – up to £600 for pensioners later this year
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Cold Weather Payments – £25 per week if temperatures drop below freezing
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Pension Credit top-ups – for pensioners on low incomes
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Warm Home Discount – £150 off electricity bills for eligible households
Can You Claim the £250 Payment?
In most cases, no application is necessary. However, if you believe you should qualify but don’t receive the payment by October 2025, you should:
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Check your benefit statements for the qualifying period
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Confirm that your benefit award was active and not a nil award
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Contact the DWP or HMRC (depending on your benefit)
Impact on Pensioners
Pensioners receiving Pension Credit are among the biggest beneficiaries of this scheme.
If you are over State Pension age and your income is below the threshold, you could qualify for:
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The £250 cost of living payment
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Automatic access to other benefits such as help with NHS costs, housing support, and winter heating allowances
Many pensioners miss out because they don’t realise they’re eligible for Pension Credit, which also makes them eligible for the £250 payment.
Common Questions About the September Payment
Will this affect my benefits?
No, the £250 payment is tax-free, non-repayable, and will not affect your existing benefit entitlements.
Do I need to apply?
No. If you are eligible, the payment is automatic.
Can couples get more than £250?
Yes. If both partners in a couple separately claim eligible benefits, both may receive the payment.
What if I recently applied for benefits?
If your claim is backdated to the qualifying period, you should still receive the payment.
Why Some People May Miss Out
Not everyone who struggles financially will qualify. Some groups left out include:
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Those just above the threshold for benefits
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Workers on low pay who don’t claim Universal Credit
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Pensioners who haven’t applied for Pension Credit
This is why the government encourages households to check eligibility and claim support they may be entitled to.
Step-by-Step: How to Maximise Your Support
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Check if you qualify for Pension Credit or Universal Credit.
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Apply before the deadline so your claim is counted within the qualifying period.
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Review your benefits regularly to make sure you’re not missing out on additional help.
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Contact Citizens Advice or similar organisations if you’re unsure about eligibility.
Final Thoughts
The £250 Cost of Living Payment in September 2025 is another lifeline for millions of UK households. Whether you’re a pensioner, a low-income worker, or a family on benefits, this payment could help ease some of the pressure of rising bills.
Make sure you:
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Check your eligibility
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Keep an eye on your bank account from September 16th onwards
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Claim additional benefits like Pension Credit if you’re entitled
With so many households under financial stress, every bit of support counts—and September’s £250 payment is designed to help those who need it most.