The UK government has confirmed a £250 Cost-of-Living Payment for December 2025, and the announcement has brought some relief to millions of low income households, pensioners and working families. With rising energy bills, expensive groceries and higher rent, even a small support payment can make a noticeable difference during winter. This guide explains who qualifies, when the payment will arrive and what steps you should take to make sure you receive it on time.
Why This Payment Is Being Offered
Living costs in the UK have climbed sharply over the last few years. Energy rates remain unstable and everyday essentials cost more than before. To help families manage winter expenses, the government has introduced the £250 Cost-of-Living Payment as a one time financial support.
The aim is simple: reduce the pressure on vulnerable households and help them manage heating, food and other essential costs in December.
Who Is Eligible
The £250 Cost-of-Living Payment is meant for people receiving certain income based benefits. You may qualify if you were receiving one of these during the government’s assessment period:
- Universal Credit, Income Support or Pension Credit
- Income based JSA or Income related ESA
Working families on low income benefits, including those on Working Tax Credit or Child Tax Credit, are also likely to receive this support. However, those on contribution based benefits alone usually do not qualify unless they also receive a listed income related benefit.
When the Payment Will Arrive
Most eligible households will receive the £250 Cost-of-Living Payment in the first three weeks of December 2025. The amount will be sent directly to the same bank account where your usual benefit payments arrive. On your bank statement, it may appear as DWP COL or HMRC COL, depending on the department handling your benefits.
How to Make Sure You Receive It
The payment is automatic, which means there is no application process. Still, a few simple checks can help avoid delays.
- Confirm your bank details are correct on your benefit account
- Make sure you were receiving a qualifying benefit during the assessment period
If the amount does not appear by the end of December, you may need to contact DWP or HMRC for support.
As the UK continues to handle rising living costs, the £250 Cost-of-Living Payment offers timely help for households preparing for winter. For many families, this one time support will play an important role in managing essential expenses during the festive season.