£300 Cost of Living Payment October 2025 : The rising cost of everyday essentials continues to put pressure on millions of UK households. In response, the Department for Work and Pensions (DWP) has confirmed a new £300 Cost of Living Payment for eligible low-income individuals and families this October 2025. This financial support is part of the UK government’s wider commitment to helping citizens navigate high inflation, energy bills, and grocery costs.
If you’re wondering whether you qualify, when to expect the money, and how it will be delivered, this detailed guide covers everything you need to know.
What Is The £300 Cost of Living Payment?
The £300 Cost of Living Payment is the second of three instalments under the UK government’s ongoing financial support package for 2025. It’s designed to help people receiving means-tested benefits like Universal Credit, Pension Credit, or Income-Based JSA cope with rising costs.
This payment follows the earlier £299 installment made in Spring 2025, and one final payment of £299 is expected in early 2026.
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Who Will Receive The Payment?
The £300 payment is not available to everyone in the UK. It is only targeted at people receiving specific benefits during a set qualifying period. These include:
- Universal Credit
- Pension Credit
- Income Support
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
If you are receiving only New-Style ESA or New-Style JSA, you will not be eligible unless you also receive one of the income-based benefits listed above.
Qualifying Period And Eligibility Rules
To be eligible, you must have been entitled to receive one of the qualifying benefits between 12 August and 10 September 2025. Even if your benefit was backdated for this period, you may still qualify for the payment.
For tax credit-only claimants, HMRC will issue the payment slightly later but using the same qualifying dates.
When Will The £300 Be Paid?
The DWP has announced that payments will begin from 17 October 2025 and continue through 31 October 2025. Most eligible households will receive their payment automatically within this window.
If you’re on Universal Credit, Pension Credit, or similar DWP benefits, your payment will come from the DWP. However, if you receive only Working Tax Credit or Child Tax Credit, HMRC will handle your payment, and it may arrive a few days later, likely from 1 November 2025.
How Will The Payment Be Made?
There is no need to apply for the £300 Cost of Living Payment. If you’re eligible, it will be sent automatically to your usual bank account, and it will appear as a separate payment from your regular benefit. The reference will include your National Insurance number followed by “DWP COL”.
Those who receive their benefits from HMRC (e.g., tax credits) will see “HMRC COLS” as the payment reference.
What If You Don’t Receive The Payment?
If you believe you’re eligible but do not receive the £300 by mid-November 2025, the DWP will provide a form on GOV.UK allowing you to report a missing payment. However, make sure to double-check your benefit entitlement during the qualifying period before submitting a claim.
Also, ensure that your bank details are correct and updated with DWP or HMRC, depending on which department handles your benefits.
Payment Schedule For All Cost of Living Installments
The £300 payment is part of a wider support scheme totaling up to £900 for eligible households. Here’s the full schedule:
- £299 – Paid in April 2025
- £300 – Scheduled for October 2025
- £299 – Coming in February or March 2026
This approach helps spread support over the year, helping families manage fluctuating bills and living expenses.
Additional Payments For Vulnerable Groups
Some households may also qualify for additional support, including:
- £150 Disability Cost of Living Payment – already paid in June 2025 to eligible individuals on disability-related benefits.
- £300 Pensioner Payment – to be added to the Winter Fuel Payment for eligible pensioners between November 2025 and January 2026.
These extra payments are meant to provide further relief to those with higher vulnerability to cost increases.
Common Questions About The £300 Payment
Many people across the UK still have questions regarding how the payment works, who qualifies, and what to do if they don’t receive it. Here are answers to the most common queries:
Do I Need To Do Anything To Receive The Payment?
No. If you’re eligible, the DWP or HMRC will send it automatically to the same account where your benefits are paid. There’s no form to fill in or application process.
Will This Affect My Other Benefits?
No. The £300 Cost of Living Payment is non-taxable, and it does not count as income for benefit purposes. It will not affect your entitlement to any existing benefits or tax credits.
Can Couples Receive The Payment Twice?
No. If you are part of a joint claim, such as for Universal Credit or Pension Credit, you will receive only one payment per household, not per individual.
Will I Get The Payment If I Start Claiming Benefits Now?
Unfortunately, no. You must have been entitled to benefits during the qualifying period (12 August to 10 September 2025). Any claim approved after this period won’t make you eligible for this particular payment.
What Happens If My Payment Is Delayed?
Most payments will arrive within the expected dates, but delays can occur due to banking issues or data mismatches. If your payment doesn’t arrive by 15 November 2025, visit the DWP website to submit a missing payment enquiry.
Government’s Response To Rising Costs
The UK government continues to monitor the economic challenges facing low-income households. While inflation has eased slightly in recent months, energy and food prices remain above average levels. These cost of living payments are a temporary but necessary relief measure, though many campaigners are calling for longer-term solutions like benefit increases and rent caps.
Final Words
With bills still climbing and wages lagging behind inflation, the £300 Cost of Living Payment coming in October 2025 could provide much-needed breathing space for millions. If you’re on a qualifying benefit, check your bank account between 17–31 October 2025 for the payment.
Make sure your benefit information is up to date, and keep an eye on GOV.UK or official DWP updates for any changes or clarifications. Even though it’s not a permanent solution, this financial boost can help you stay afloat during another difficult winter.