UK Confirms £650 Cost Of Living Support For Low-Income Households In June 2025

The UK government has officially confirmed a £650 Cost Of Living Support For Low-Income Households for low-income households across the country, starting in June 2025. This significant support package is aimed at easing the financial burden of rising energy bills, food prices, and general inflation, especially for those who are most vulnerable during the ongoing cost of living crisis.

With millions of households still grappling with financial insecurity caused by global economic disruptions, this government intervention comes as a crucial relief. Here’s everything we at UK Bloom believe you need to know about the £650 support payment, who qualifies, and how to claim it.

What Is the £650 Cost Of Living Support For Low-Income Household?

The £650 payment is part of a broader cost of living support strategy announced by the Department for Work and Pensions (DWP) in response to the economic stress many households are experiencing due to continued inflation and energy bill surges.

This payment is intended for low-income households, especially those on means-tested benefits, and will be automatically paid to eligible recipients in two instalments—the first one arriving in June 2025.

Payment Breakdown and Schedule

Payment	Amount	Payment Date	Eligibility Based On
First Cost of Living Payment	£325	June 2025	On qualifying benefit during qualifying period
Second Cost of Living Payment	£325	Autumn 2025 (TBC)	Same as above

These payments are non-taxable, do not affect benefit entitlements, and do not require an application—they will be disbursed automatically by the DWP or HMRC depending on the claimant’s benefit type.

Who Is Eligible for the £650 Cost of Living Support?

To qualify for the £650 payment, you must be receiving one of the following means-tested benefits:

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

Note: You must have been entitled to payment during a specific qualifying period (usually a set date range in spring 2025). The government will release exact dates closer to the payment window.

Those receiving only New Style ESA, New Style JSA, or contributory benefits will not be eligible, unless they also receive one of the listed qualifying benefits.

How Will the £650 Be Paid?

The £650 cost of living payment will be deposited directly into your bank account—the same one where you receive your existing benefits. You do not need to apply, and the DWP has warned against scammers targeting claimants with fake application links.

➤ How Will HMRC Payments Work?

If you are receiving Tax Credits only (Working Tax Credit or Child Tax Credit), the payment will be made by HMRC after the DWP pays other benefit recipients. This is to avoid duplicate payments.

Why Is This Payment Important?

Rising inflation, particularly in essential categories like energy, housing, and groceries, has led to increased poverty and food insecurity. According to The Trussell Trust, food bank usage has reached record levels in the UK.

The £650 support is part of the government’s wider efforts to:

Prevent homelessness
Support low-income families and pensioners
Offset high energy bills following Ofgem’s price cap hikes
Aid those not reached by Local Authority grants

The £650 payment is not the only form of support available. You may also qualify for:

Winter Fuel Payment + Pensioner Cost of Living Top-up

Eligible pensioners can receive an additional £300 Winter Fuel Payment during the winter of 2025–26.

Disability Cost of Living Payment

Individuals on disability benefits (e.g. PIP, DLA) will receive a £150 payment in September 2025.

Energy Bill Discount

Some households may still qualify for the Energy Bills Support Scheme, especially if on prepayment meters or vulnerable tariffs.

Regional Council Support: Check Your Local Authority Schemes

While the £650 payment is administered centrally by the DWP and HMRC, many local councils are also distributing Household Support Fund grants. These are discretionary payments that vary by council and can be used for food, rent, energy, and essentials.

📌 Visit GOV.UK to Find Local Help

Important Reminders and Tips

Don’t apply for the £650—it’s automatic.
Beware of scams. The government will never ask you to click links or provide personal details via text.
Keep your bank details updated with DWP or HMRC if you’ve changed accounts recently.
Check eligibility carefully if you receive mixed benefits or transitioned between systems recently (e.g. from Tax Credits to Universal Credit).

Internal Links (from UKBloom.co.uk)

To help our readers navigate related content, we recommend exploring:

Frequently Asked Questions (FAQ)

Can I apply for the £650 payment if I’m on Universal Credit?

No application is needed. If you’re eligible and on Universal Credit during the qualifying period, the payment will be made automatically.

What if I receive both Universal Credit and Tax Credits?

You’ll receive the payment from DWP, not HMRC, and only once.

Is the £650 taxable or will it affect my benefits?

No. The £650 cost of living payment is non-taxable and does not count towards your benefit cap or income assessment.

I missed the qualifying period—can I still get the payment?

Unfortunately, if you didn’t receive a qualifying benefit during the eligibility window, you won’t be entitled to this specific payment. However, check if you qualify for other schemes like Hardship Grants or Household Support Fund via your council.

Final Thoughts

The £650 cost of living payment for low-income households is one of the most important support mechanisms introduced by the UK government in 2025. At a time when inflation remains high and living expenses continue to rise, this relief will help ease the financial burden for millions.

We encourage every eligible household to ensure their benefit records are up to date, avoid scams, and explore additional support opportunities offered by local authorities or charitable organisations.

Stay informed with UK Bloom as we continue to monitor benefit changes, visa updates, and cost of living assistance.

Disclaimer

This article is intended for informational purposes only. While we strive for accuracy, readers are advised to consult GOV.UK or the DWP for the latest updates, official eligibility criteria, and announcements regarding government support payments. UK Bloom does not provide legal, financial, or benefits advice.