Let’s be honest—we’ve all felt the squeeze lately. Rising bills, soaring grocery prices, and surprise expenses have made life trickier for many households. Thankfully, the UK government has stepped in with a £650 one-off cost of living payment to offer a bit of breathing room.
Whether you’re wondering if you’re eligible or how the money will hit your account, this friendly guide walks you through £650 cost of living payment how to apply—even though, spoiler alert: you don’t need to apply.
What is the £650 One-Off Cost of Living Payment?
Think of this as a financial lifeline from the government to help with the rising cost of living. This £650 payment is split into two parts—£326 and £324—and it’s designed for people already receiving certain benefits.
The DWP and HMRC handle the distribution, and if you qualify, the payment lands directly in your bank account.
“This measure ensures those most vulnerable to the cost-of-living crisis receive targeted support,” says Fiona MacTaggart, financial policy adviser.
Who Is Eligible for the £650 Cost of Living Payment?
Good news: you might already qualify without even knowing it! You just need to be receiving one or more of the following benefits:
| Eligible Benefits | Handled By |
|---|---|
| Universal Credit | DWP |
| Income-based Jobseeker’s Allowance | DWP |
| Income-related Employment Support Allowance | DWP |
| Income Support | DWP |
| Pension Credit | DWP |
| Working Tax Credit | HMRC |
| Child Tax Credit | HMRC |
Important: You must’ve been receiving these between 26 April and 25 May 2025.
Do I Need to Apply for the £650 Cost of Living Payment?
Nope, not at all. The government has made this super simple: if you qualify, you’ll get the payment automatically. Just keep your bank details up to date with DWP or HMRC. And remember—no official agency will ask you for your details via text or email. Avoid scams!
How to Apply for £650 Cost of Living Payment
Even though there’s no application form, here’s how the whole process works:
- Check your eligibility
- Were you receiving any of the qualifying benefits during the magic window (26 April–25 May 2025)?
- Update your info
- Log into your DWP or HMRC account and make sure your bank and contact info is accurate.
- Wait for your money
- No chasing necessary. You will receive the money if you are eligible.
- Watch your bank account
- Search for a payment that is marked “DWP COLP” or “HMRC COL.”
- First instalment (£326): coming mid-to-late June 2025
- Second instalment (£324): expected in Autumn 2025
- Still nothing?
- If the deadline passes and your account is still empty, contact DWP or HMRC to chase it up.
How Will I Receive the £650 Payment?
You don’t need to do anything special. The funds are sent straight to your bank account:
- Payment reference: “DWP COLP” or “HMRC COL”
- It’s split into two payments: £326 and £324
- First arrives in June 2025, second in Autumn 2025
Just make sure your bank details with DWP or HMRC are current.
What If I Don’t Receive the Payment?
Don’t panic—sometimes things just need a little follow-up. Here’s what you can do:
- Double-check you were eligible during the qualifying window.
- Look through your bank statements for the payment reference.
- Contact the DWP or HMRC to report a missing payment.
Can Couples or Joint Claimants Get Two Payments?
This is a common question, and the answer is no. The £650 payment is per household, not per person. So if you share a claim, you’ll share the payment.
Will the £650 Payment Affect My Benefits or Taxes?
Not at all. This payment is non-taxable and won’t impact your other benefits or future eligibility.
“This payment is an exception and will not impact your financial aid assessments,” says Darren Williams, a benefits advisor at Citizens Advice.
How Should You Use the £650 Cost of Living Payment?
Here are a few smart ways people are using it:
- Paying off overdue bills
- Stocking up on groceries
- Covering school expenses
- Putting it in an emergency savings pot
It’s your call—but using it wisely could ease more than just this month’s budget.
Are There Other Government Supports Available?
Yes, and you might qualify for more than one:
- £150 Disability Cost of Living Payment
- £300 Pensioner Winter Fuel Payment
- Local support via the Household Support Fund
Websites like Citizens Advice and Turn2us offer tools to help you check what you qualify for.
Cost of Living Payment for Pensioners
Are you of pension age? Then good news—you may be in line for an extra £300 added to your Winter Fuel Payment.
Who qualifies?
- You’re aged 66 or older (State Pension age) by September 2025
- You’re eligible for the Winter Fuel Payment
No extra paperwork—just keep an eye on your bank account in November or December.
“Pensioners face higher heating bills, so this payment helps ensure they stay warm during the colder months,” says Helen Andrews, Age UK policy analyst.
How to Apply for Cost of Living Payment Online?
Here’s the twist: you can’t apply online, but you can manage your information online.
What can you do online?
- Log in to your DWP or HMRC account
- Update your bank info or contact details
- Use the GOV.UK website to report a missing payment
Avoid third-party websites or anyone offering to help you “apply”—that’s a red flag.
How Do You Qualify for the £650 One-Off Payment?
Still not sure if you’re in the clear? Here’s a quick recap:
- You were receiving a qualifying benefit (Universal Credit, Tax Credits, etc.) between 26 April and 25 May 2025
- Your benefit claim was active during that time
- You live in the UK
Heads up: if you got a zero award (meaning no payment for that month), you might not qualify. It’s always worth double-checking.
Conclusion
To sum it up, the £650 one-off cost of living payment how to apply is designed to get help to the people who need it—without requiring them to jump through hoops. If you’re receiving a qualifying benefit during the right timeframe, the money is headed your way automatically.
So, breathe easy. Check your info. And if something goes wrong, don’t be afraid to reach out to DWP or HMRC.
FAQs about 650 One-Off Cost of Living Payment How to Apply
1. Is the £650 payment taxable?
Nope, it’s tax-free.
2. Can I receive both the £650 and the £150 Disability Payment?
Yes—as long as you qualify for both.
3. What should I do if my payment is delayed?
Give it a little time, then contact DWP or HMRC.
4. Can I still get the payment if I claim benefits after May 2025?
Unfortunately, no. You had to qualify during the April–May window.
5. Will this payment be repeated next year?
No official word yet—keep an eye on GOV.UK for updates.
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I’m Laura Wilson, a passionate blogger and content creator with a deep interest in business, finance, and entrepreneurship. I’ve had the opportunity to write for several premium blogs, sharing insights & practical advice for individuals & small businesses. I’m the founder and publisher of ukbusinessmag.co.uk, where I focus on creating valuable, easy-to-understand content to help UK startups & SMEs grow.
