As households across the UK continue to feel the pressure of rising prices, energy bills, and higher food costs, the government has confirmed that another round of cost of living support will arrive this September. A payment of £300 will be made to millions of people who are already receiving qualifying benefits, offering some financial breathing room as inflation continues to affect everyday essentials. For many families, this support could make the difference between managing bills and falling behind, which is why it is important to understand exactly who qualifies, when the payment will arrive, and how to check if you are eligible.
Why this support matters now
The cost of living crisis has been one of the most pressing challenges facing UK households over the last few years. Even though inflation has begun to slow compared to its peak in 2022, the prices of groceries, rent, fuel, and energy bills remain much higher than they were before the crisis began. According to the Office for National Statistics, many families are spending a far larger share of their income on necessities, leaving little room for savings or non-essential purchases.
This £300 payment is part of a broader package of government support designed to protect the most vulnerable groups, including pensioners, low-income families, and people with disabilities. It follows earlier cost of living payments made in 2022 and 2023, continuing the government’s pledge to ease financial strain for those who need it most.
Who can get the £300 payment
The most important thing to know is that not everyone in the UK will automatically receive this money. The payment is targeted at households already receiving certain means-tested benefits. If you are claiming one or more of the following, you could be eligible:
- Universal Credit
- Pension Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Working Tax Credit
- Child Tax Credit
It is worth noting that people who only receive New Style ESA, contributory ESA, or New Style JSA will not qualify. The payment is linked directly to means-tested benefits, which means it is aimed at households with lower incomes.
Automatic payments, no application needed
One of the biggest advantages of the £300 cost of living support is that it is paid automatically. If you qualify based on your benefits, the money will be sent directly to your bank account without the need for an application. This reduces the risk of delays and makes the process much smoother for recipients.
The Department for Work and Pensions (DWP) will handle payments for those receiving most qualifying benefits, while HM Revenue and Customs (HMRC) will make the payment for those on tax credits. The money will arrive in the same bank account where your benefits or tax credits are usually paid, with a clear reference so you can identify it easily.
When the payment will arrive
The £300 payment is scheduled to be rolled out in September. While the exact dates can vary depending on whether you receive benefits through DWP or HMRC, most payments are expected to be made within a two-week window during the month.
DWP has stated that it will aim to complete the majority of payments promptly, but if you are on tax credits, you may receive the money slightly later. The reason for this delay is to prevent duplication for households receiving more than one type of benefit.
How to check your eligibility
If you are unsure whether you qualify, the best step is to review your benefit status. To be eligible for the £300 payment, you generally must have been entitled to receive one of the qualifying benefits during a specific assessment period set by the government.
For example, with Universal Credit, entitlement is often linked to the assessment period that includes a certain cut-off date, usually announced in advance by the DWP. If your earnings were too high during that period and your Universal Credit was reduced to zero, you may not qualify for the payment.
If you are claiming Pension Credit, it is especially important to check if you have backdated claims. Pension Credit can be backdated by up to three months, which means if you apply now and are approved, you might still qualify for this support even if you were not receiving it in the past months.
Payment reference and security
The £300 payment will appear in your bank account with a clear reference, such as “DWP COLP” or “HMRC COLS,” depending on which department issues your payment. This helps recipients confirm that the payment is genuine and avoid confusion with other benefits.
As with any government payment, be cautious about scams. Fraudsters often take advantage of cost of living announcements to trick people into sharing personal or banking details. Remember that the government will never ask you to apply for this payment or provide details through a text message or phone call. If you receive such a request, it is likely a scam and should be reported.
Impact on other benefits
Many people worry whether receiving the £300 support will affect their existing benefits or tax credits. The good news is that this payment is not taxable, nor will it count as income for benefit assessments. That means it will not reduce your Universal Credit award or affect any other means-tested support you already receive.
This protection ensures that the £300 acts as extra help rather than replacing money you are already entitled to.
How this fits into the wider cost of living package
The September payment is just one part of a larger government support package. Over the last year, the government has issued several cost of living payments, including £900 in three instalments for households on means-tested benefits, £150 for people on disability benefits, and additional support for pensioners through the Winter Fuel Payment.
The £300 payment is the second major instalment in the ongoing support plan for 2024–2025, with further payments expected later in the financial year. This structured approach helps households manage seasonal expenses, such as higher heating costs during winter.
Pensioners and additional help
Pensioners are among the groups hit hardest by rising prices, especially energy costs during the colder months. For many older people on fixed incomes, the £300 payment will come on top of the Winter Fuel Payment, which provides additional support for heating bills.
If you are over State Pension age and receiving Pension Credit, you may qualify for both forms of support. This combined help could total several hundred pounds, making a significant difference during the colder months ahead.
How families can use the support
For households struggling with rising bills, the £300 payment can be directed toward essential expenses. Many families use this type of support to cover utility bills, rent, or food costs. Financial advisors recommend using the payment strategically—for example, paying down priority debts or putting it towards direct debit energy bills to avoid arrears.
For some households, this payment could also provide a small opportunity to set aside savings for emergencies, something that has become increasingly difficult during the cost of living crisis.
What to do if you do not receive it
If you believe you qualify but do not receive the payment by the end of the September rollout window, it is important to contact the relevant department. For most benefits, you should reach out to the DWP, while tax credit claimants should contact HMRC.
Make sure your bank details are up to date, as outdated or incorrect information could delay your payment. The government also advises waiting until the payment window has closed before making contact, as many payments are made in batches.
Looking ahead
The £300 support this September highlights the government’s continued recognition of the pressures UK households face. While it is not a complete solution to the cost of living crisis, it does provide vital relief for millions of families and pensioners.
Looking ahead, further payments are expected, but long-term stability will depend on broader economic improvements, including lower inflation, more affordable energy prices, and wage growth that keeps pace with rising costs. Until then, targeted support like this will continue to play a crucial role in helping vulnerable households stay afloat.