Over 7 Million UK Households To Receive £650 Cost Of Living Payment In August 2025

The UK Government has announced a £650 Cost of Living Payment for August 2025 to help low-income households cope with rising expenses. From food and energy bills to rent and transportation, everyday costs have been climbing, making it harder for families to manage.

This payment is designed to reduce financial stress without requiring people to go through complicated application processes. If you’re eligible, the money will be paid directly into your bank account.

Who Will Get the £650 Cost of Living Payment?

The Department for Work and Pensions (DWP) has confirmed that the payment will go to over 7 million households in the UK. However, it is only available to people who are already receiving means-tested benefits.

Means-tested means your eligibility depends on your income and savings. If your income is below a certain level, you may qualify.

Eligible Benefits Include:

Qualifying Benefit	Eligibility Notes
Universal Credit	Includes people in work but with low income
Income-based Jobseeker’s Allowance (JSA)	Contribution-based JSA is not included
Income-related Employment and Support Allowance (ESA)	Contribution-based ESA is not eligible
Income Support	For those meeting low-income criteria
Pension Credit	Must be income-based
Child Tax Credit	Must meet income thresholds
Working Tax Credit	Same income rules as Child Tax Credit

Note: If you only receive non-means-tested benefits like the State Pension, Disability Living Allowance (DLA), or Personal Independence Payment (PIP), you won’t get this £650 payment. However, the government has hinted that more targeted support could be announced later in 2025.

When and How Will the £650 Payment Be Made?

You do not need to apply for this payment. If you qualify, the DWP will send the money automatically.

• Payment Dates: Between 15 August 2025 and 30 August 2025
• Payment Method: Direct bank transfer
• Payment Reference: “DWP COLP” followed by your National Insurance number

If you are unsure whether you qualify, you can check the DWP Cost of Living Payments section on GOV.UK or call the DWP helpline.

What Can the £650 Payment Be Used For?

The payment can be used for anything you choose, but it is mainly intended for essential living costs, such as:

• Groceries and daily household items
• Energy bills to heat and light your home
• Rent or mortgage payments
• Transportation for work, school, or medical appointments

Reports from local councils suggest that since the scheme started, food bank use has decreased, meaning many people are using the money for its intended purpose — covering essential costs.

What If You Don’t Qualify?

If you are not eligible for this £650 payment, don’t worry — there are other support schemes available.

• Energy Bill Support – Previous schemes have given households money to cover heating costs.
• Household Support Fund – Local councils may provide one-off grants for essential items.
• Future Government Announcements – Keep an eye on GOV.UK for any new cost of living help.

What You Need to Know

• £650 payment is for low-income households on means-tested benefits.
• Payment will be made automatically between 15–30 August 2025.
• You cannot apply if you do not already get a qualifying benefit.
• The payment will not affect other benefits and is tax-free.

The £650 Cost of Living Payment for August 2025 is a lifeline for millions of UK households struggling with rising living costs. By targeting those already on means-tested benefits, the government ensures that support reaches the people who need it most.

Cost of Living: With automatic payments, there’s no extra stress of applying or waiting for approval — just a timely financial boost to help with essentials like food, rent, and energy bills.

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