New DWP £301 Cost of Living Payments September 2025 : Who Qualifies and How to Claim

Introduction: In today’s time when the cost of living crisis is constantly increasing, special payment schemes are being introduced by the UK government to provide relief to low-income and struggling families. In this episode, the Department for Work and Pensions (DWP) has announced a £301 Cost of Living Payment in September 2025.

This article will tell you who will get this payment, what will be the eligibility conditions, when will the payment be made and how can you claim if you do not get this amount.

Why is Cost of Living Payment necessary?

In the last few years, the prices of electricity, gas, rent and food items have increased rapidly. Especially low-income families, pensioners and disabled people have been most affected by this inflation.

The aim of the UK government is to reduce the financial burden of these people a little by giving additional assistance. This payment of £301 will go directly to the bank account and will not be considered taxable in any way.

When will you get the £301 payment?

According to the DWP, this is to be paid out in September 2025. Nevertheless, it could differ by the exact dates based on your bank, payment way, and type of benefits.

Payments usually happen in phases

• First to those on Universal Credit
• Then to those on Pension Credit, Income Support and JSA/ESA
• Finally to households on tax credits via HMRC

Who will qualify for £301?

To get this payment you must be receiving one of the following DWP benefits or HMRC tax credits:

• 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

Note: If you’re only receiving New Style ESA, New Style JSA or Contribution-based JSA, you won’t be eligible.

Key conditions to get the payment

• You must be claiming an eligible benefit and it must be active on the scheduled payment date.
• If you’ve recently claimed Pension Credit and your claim is accepted through backdating, you’ll still be entitled to this £301 payment.
• Even in a joint claim, only one payment will be given, not to both individuals separately.

Do you have to apply?

No. If you are eligible, you will receive the payment automatically. The government already keeps your claim and bank account details But if you are eligible but do not receive the payment, you will have to contact DWP or HMRC. A special online portal and helpline will be provided for this.

Method of payment

Payment will always be made directly into the bank account. It will appear on your bank statement under this name:

• DWP COLP (Cost of Living Payment)
• If you are receiving payment from HMRC, your statement will say:
• HMRC COLS

Who will not get this payment?

• If you only take New Style ESA, JSA or Contributory Benefits.
• If you have a high income and you’re not claiming any means-tested benefits or tax credits.
• If you have enough savings and assets that put you outside the DWP eligibility limit.

What if you don’t get paid?

Even if you’re eligible, in some cases you may not get paid due to technical reasons. Such as:

• Problems with bank account
• Incorrect details entered
• Data mismatch between DWP and HMRC
• In such a case, you can visit the official DWP website and fill out a missing payment claim form.

How will this £301 help help?

• It might not be a large sum but a great relief to families dealing with crisis.
• Paying bills of electricity and gas.
• Shopping of groceries and other necessities.
• Meeting basic needs like rent and transport.
• The government aims to provide direct help to those in need and prevent them from taking on debt or additional loans.

What else can be expected in the future?

The DWP and HMRC periodically announce new installments of Cost of Living Payments. After the £301 payment in 2025, it is likely that more support schemes will be introduced in the coming months Additional support schemes may be announced, especially for pensioners and the disabled.

Conclusion

The £301 DWP Cost of Living Payment coming in September 2025 will bring relief to millions of UK families. Its purpose is to provide direct financial assistance to people struggling with inflation.

Provided you receive any qualifying benefit under the DWP or HMRC, you will not have to make a separate claim to this payment. All that you need is to ensure that your information is accurate and current This payment is not just a financial aid but also a message that the government stands with its citizens in difficult times.

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