With inflation and utility prices continuing to strain household budgets, the UK Government has confirmed a £500 Cost of Living Support Payment scheduled for August 2025.
This one-off payment is part of ongoing efforts to provide financial relief to low-income households, benefits recipients, and vulnerable groups hit hardest by the ongoing cost-of-living crisis.
This article breaks down who qualifies, when you’ll receive the £500 support, and what steps you should take to make sure you don’t miss out.
What Is the £500 Cost of Living Payment?
The £500 payment is a non-taxable lump sum designed to help cover rising expenses such as:
- Energy bills
- Grocery costs
- Transportation
- Essential household goods
It will be automatically paid to eligible individuals without the need for a separate application, provided they meet the qualifying criteria during the assessment period.
Eligibility Criteria for the £500 August 2025 Payment
To qualify, recipients must be receiving one or more of the following means-tested benefits during the qualifying period (likely June or July 2025):
| Eligible Benefits |
|---|
| Universal Credit |
| Pension Credit |
| Income-based Jobseeker’s Allowance (JSA) |
| Income-related Employment and Support Allowance |
| Income Support |
| Working Tax Credit |
| Child Tax Credit |
Important:
- Claimants must have received a payment (or had a zero award due to deductions) during the qualifying period.
- Those on only contribution-based benefits (e.g., new-style JSA or ESA) are not eligible unless they also receive one of the income-based benefits listed above.
£500 Cost of Living Payment – August 2025 Schedule
| Event | Date |
|---|---|
| Announcement Date | June 2025 |
| Qualifying Period | June – early July 2025 |
| Payment Start Date | August 12, 2025 (estimated) |
| Final Payment Window | August 30, 2025 |
| Payment Mode | Direct deposit / bank transfer |
How to Receive the Payment
You do not need to apply separately if you are already receiving a qualifying benefit. The Department for Work and Pensions (DWP) or HMRC will automatically deposit the payment into your bank account used for benefit payments.
Ensure:
- Your contact and banking details are updated
- You’re actively receiving the qualifying benefit during the eligibility window
Why This Support Matters
The £500 payment comes as households face increased energy bills, rent hikes, and grocery prices. While previous cost of living payments ranged from £150 to £900, this £500 installment aims to bridge the gap ahead of the winter support schemes.
It is especially beneficial for:
- Pensioners on limited income
- Low-income working families
- Single parents
- Disabled individuals
The £500 Cost of Living Payment in August 2025 is a timely lifeline for millions of UK residents facing financial stress.
If you’re on Universal Credit, Pension Credit, or other qualifying benefits, make sure your records are up to date and watch for the deposit in mid to late August 2025.
This payment is a key part of the UK’s broader commitment to support vulnerable citizens amid ongoing economic uncertainty.
FAQs
Do I need to apply for the £500 cost of living payment?
No. Payments are made automatically if you receive an eligible benefit during the qualifying period.
What if I receive multiple benefits?
You will still receive only one payment of £500, even if you qualify through more than one benefit.
When will the money be deposited?
Payments are expected between August 12 and August 30, 2025.