The UK Government is providing a £250 Cost of Living Boost in August 2025 to help low-income households cope with rising expenses. This one-off payment is designed to support individuals and families with essentials like energy bills, groceries, and daily living costs. Here’s a complete guide to eligibility, payment dates, and how the money is delivered.
Purpose of the £250 Cost of Living Boost
The boost is part of the government’s ongoing efforts to:
- Assist households struggling with high living costs.
- Provide direct financial support to low-income earners and benefit recipients.
- Reduce financial stress for vulnerable individuals before the autumn months.
Who Is Eligible?
You may qualify for the £250 Cost of Living Boost if you are receiving one or more of the following benefits:
- 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
Key Points:
- Only one payment per household is made, even if multiple members are eligible.
- The payment is automatic, so no application is needed.
Who Will Not Qualify
- Households with incomes above the benefit thresholds.
- Individuals only receiving New Style JSA or New Style ESA without other qualifying benefits.
- People living permanently outside the UK, unless specific exceptions apply.
Payment Details
- Payment Date: Expected mid to late August 2025
- Payment Method: Direct deposit to your usual benefit account
- Amount: £250 (tax-free and will not affect other benefits)
The payment is processed by the Department for Work and Pensions (DWP) or HM Revenue & Customs (HMRC) depending on the benefit you receive.
Why This Boost Matters
With the cost of energy, food, and essentials rising, the £250 boost offers a financial cushion to vulnerable households. It ensures that families can cover basic living costs without going into debt.
Overview Table
| Detail | Information |
|---|---|
| Payment Name | Cost of Living Boost 2025 |
| Amount | £250 |
| Eligible Benefits | Universal Credit, Pension Credit, Income Support, JSA (income-based), ESA (income-related), Tax Credits |
| Payment Date | Mid to late August 2025 |
| Application Required | No – automatic |
| Taxable? | No |
FAQs
1. Do I need to apply for the £250 boost?
No, it will be paid automatically if you qualify.
2. Will the payment affect my other benefits?
No, it is tax-free and does not reduce other benefits.
3. Can two people in the same household receive the payment?
No, only one payment per household is issued.