£301 DWP Cost of Living Payments Are Back: New Eligibility Rules Explained

£301 DWP Cost of Living Payments Are Back: New Eligibility Rules Explained

Good news for millions of people in the UK — the £301 Cost of Living Payment is back, and many households will soon see the money appear in their accounts. This payment, issued by the Department for Work and Pensions (DWP), is part of the government’s continued support for low-income families and individuals struggling with the rising cost of food, energy, and other essentials.

However, this time around, new eligibility rules apply, and it’s important to understand who qualifies and how the payments will be made. If you’re unsure about whether you’re eligible or when to expect your payment, this guide breaks it all down in a simple and easy-to-understand way.

What is the £301 Cost of Living Payment?

The £301 payment is part of a larger government scheme to support people during tough financial times. It is one of several cost of living payments being made throughout the year. The goal is to help households who receive means-tested benefits deal with the increasing cost of living.

This payment is tax-free, does not affect other benefits, and is being paid automatically to eligible recipients.

Overview Table: £301 Cost of Living Payment Summary

Who is Eligible for the £301 Payment?

To qualify for the £301 payment, you must be receiving at least one of the following benefits during the qualifying period (which is usually a few weeks before the payment date):

Qualifying Benefits:

• Universal Credit

• Income-based Jobseeker’s Allowance (JSA)

• Income-related Employment and Support Allowance (ESA)

• Income Support

• Pension Credit

• Working Tax Credit

• Child Tax Credit

Important: If you receive only contribution-based JSA or ESA, you will not qualify for this payment unless you also receive one of the above income-related benefits.

New Eligibility Rules: What’s Changed?

This round of payments comes with updated eligibility rules. Here’s what’s different:

1. New Qualifying Period

The DWP will decide eligibility based on a specific period in April or May 2025. You must have received a payment (or later become entitled to one) for at least one of the listed benefits during this window.

2. No Need to Apply

You do not need to fill out any forms or contact the DWP. If you’re eligible, the payment will be made automatically to the account where your benefits are normally sent.

3. Tax Credits Only? Wait for HMRC

If you only receive Working Tax Credit or Child Tax Credit, you will still get the payment, but it may come a little later and will be paid by HMRC, not DWP.

How Will You Get Paid?

The payment will be made:

• Directly into your bank account – the same one where you receive your benefits.

• The description on your bank statement will usually include your National Insurance Number and say “DWP COL”.

If you don’t get the payment, make sure:

• You check your bank account and statements

• You were eligible during the qualifying period

• Your information is up to date with the DWP or HMRC

If it’s still missing after 10 working days, you may need to contact them.

What If You’re on a Joint Claim?

If you claim benefits as part of a couple:

• Only one payment of £301 will be made per household.

• It will go to the same bank account that usually receives the benefit.

So, even if both adults qualify, the payment is made just once per claim.

Other Payments Coming Later in the Year

The £301 payment is just the first part of a wider support package. Other payments will follow, including:

• A second cost of living payment

• A winter fuel payment for pensioners

• Additional support for people with disabilities

More information about these upcoming payments is expected later in the year.

FAQs

Q1: When will I receive the £301 Cost of Living Payment?
Most eligible people will receive it starting mid-June 2025, but it may take a couple of weeks for all payments to be processed.

Q2: Do I need to apply or sign up for the payment?
No. If you are eligible based on your benefit payments, the DWP (or HMRC for tax credit recipients) will pay you automatically.

Q3: What if I didn’t get the payment but think I qualify?
Check if you were receiving a qualifying benefit during the right period. If yes, and you still didn’t get it after 10 working days, contact DWP or HMRC.

Q4: Will this payment affect my other benefits?
No. The £301 payment is completely separate and will not affect your benefit amount or count as income.

Q5: Can I get the payment if I only receive Housing Benefit?
No, not unless you also receive one of the listed qualifying benefits like Universal Credit or Pension Credit.

Final Thoughts

The return of the £301 Cost of Living Payment offers real help to those who need it most. With rising bills and continued financial pressure, this one-off support could make a big difference.

Just remember:

• You don’t need to apply

• Check your eligibility

• Stay updated on your benefit status

If you qualify, the money will be sent to you automatically. And if you don’t receive it by the expected date, don’t panic — payments are often made in batches.