In today’s economic situation, the “Cost of Living Crisis” remains a major challenge for millions of UK families and pensioners. Inflation, increase in energy bills, surge in food prices and other daily expenses have shaken the budget of the households. Meanwhile, the government has announced a £301 UK Cost of Living Payment in September 2025, which is specifically to help those who are already facing financial pressure.
This article will give you all the necessary information about this payment – who is eligible for it, what are the payment dates, how to get money and what is its real purpose.
What is Cost of Living Payment?
The Cost of Living Payment is a financial relief program launched by the UK government, which is specially designed to help low-income families, pensioners and citizens receiving benefits.
The government believes that the ever-increasing inflation has put a heavy burden on the pockets of the common people, and this one-time payment will work to give them immediate relief. This amount has been fixed at £301 for September 2025.
Purpose of £301 Payment
- To reduce the burden of food and energy costs: everyday needs have become expensive, especially gas and electricity bills.
- To support low-income families: so that they are less likely to take loans.
- To combat the cost of living crisis: The government wants to provide a security cover to the needy class through this payment.
Who is eligible (Eligibility Criteria)?
To get £301 Cost of Living Payment, you must receive some special benefits (from DWP or HMRC) in September 2025. Eligibility is as follows:
- People receiving Universal Credit
- Recipients of Income Support
- Beneficiaries of Income-Based Jobseeker’s Allowance (JSA)
- Those with Income-Related Employment and Support Allowance (ESA)
- Families receiving Working Tax Credit or Child Tax Credit
- Senior citizens receiving Pension Credit
It is worth noting that if you have contribution-based JSA/ESA or only New State Pension, you will not be eligible for this payment.
Payment dates (September 2025 Schedule)
- Both DWP (Department for Work and Pensions) and HMRC (Her Majesty’s Revenue and Customs) will make this payment to their respective eligible citizens.
- DWP eligible citizens will be paid between 10 and 20 September 2025.
- Those receiving HMRC tax credits will receive this payment between 20 and 30 September 2025.
How will you get the money?
This amount will be deposited directly into your bank account, in the same account in which you already receive your benefits. The reference to the payment will appear in your bank statement under the name “DWP COLP” or “HMRC COLP”.
What is the application for?
No. There is no need to make any kind of application for this. If you meet the eligibility criteria, the money will automatically come into your account.
Who will not get this payment?
- Those who have very high income and are not eligible for any income-based benefits.
- Those who are only taking contribution-based JSA/ESA.
- Those who are only receiving State Pension and do not take any other income-support.
Why is this payment important?
Inflation figures in 2025 show that the average family is spending 12-15% more on living than before.
- Gas & Electricity Bills: About 20% increase
- Food Prices: 10–12% increase
- Rent & Housing Costs: 8–10% increase
In such a situation, this payment of £301 from the government will not help directly, but it will definitely provide temporary relief to low-income families.
Cost of Living Payment and State Pension
- Many senior citizens ask the question whether they will get £301.
- If a pensioner is dependent only on State Pension and is not taking any other benefits, then he will not get this payment.
- But, if he also takes Pension Credit, then he will get this £301 directly in his bank account.
Beware of Fraud and Scams
- The government is repeatedly warning that fraudsters become active regarding this payment.
- DWP or HMRC will never ask you for bank details over phone, email or SMS.
- If someone asks you to click a link or share OTP, it is definitely a fraud.
- The money will always be deposited directly into your bank account, so it is dangerous to give information to a third person.
Future plans
The government says that this Cost of Living Payment is not a permanent plan. But if inflation rises further, the possibility of more payments cannot be ruled out in the coming months.
Also, many social organizations have suggested that the government should make a long-term policy, which includes energy support and food security.
Conclusion
The £301 UK Cost of Living Payment of September 2025 will bring relief to millions of citizens.This payment will particularly assist families and pensioners who are grappling with inflation pressure and increasing costs.
Though this will not completely offset the increasing cost of living, it is a temporary relief to those who are struggling to meet their household budgets.
FAQs
Q1. What is the £301 UK Cost of Living Payment in September 2025?
A. The £301 Cost of Living Payment is financial support from the UK government to help low-income households cope with rising living costs.
Q2. Who is eligible for the £301 Cost of Living Payment?
A. People receiving benefits such as Universal Credit, Income Support, Income-Based JSA, Income-Related ESA, Tax Credits, or Pension Credit are eligible.
Q3. When will the £301 payment be made in September 2025?
A. Payments by DWP will be made between 10–20 September 2025, and HMRC will release payments between 20–30 September 2025.
Q4. Do I need to apply to get the £301 Cost of Living Payment?
A. No. If you are eligible, the payment will be made automatically into your bank account without any application.
Q5. Will pensioners get the £301 Cost of Living Payment?
A. Pensioners receiving Pension Credit will get the payment. However, those only on the basic State Pension will not qualify.