The £375 Cost of Living Payment is creating a lot of buzz as winter approaches in the United Kingdom. With inflation still making essentials like food and energy more expensive, many low-income households are looking for financial relief to get through the colder months. The government’s proposed support could not come at a better time. For millions, this payment could mean the difference between warmth and worry.

In this guide, we break down everything you need to know about the £375 Cost of Living Payment, from who qualifies to when it will be paid. Whether you receive Universal Credit, Pension Credit, or any other eligible benefit, this article will help you understand what to expect and how to prepare. Let us take a closer look at the full picture.

£375 Cost of Living Payment – What to Expect in December 2025

If you are wondering what the £375 Cost of Living Payment actually is, it is a one-time, tax-free financial support provided by the UK government to help low-income households cope with rising living costs during winter. This payment is not part of your usual benefit entitlements, but an additional lump sum given to those who meet specific eligibility criteria. It is intended to ease financial pressure during December, a month known for higher heating bills, increased food prices, and extra expenses related to the festive season. The payment is designed to provide direct support without requiring an application. If you receive a qualifying benefit during the official assessment period, expected to be announced for autumn 2025, the payment will be made automatically to your bank account.

Overview of the £375 Cost of Living Payment

Key Information	Details
Payment Amount	£375 (tax-free, one-off payment)
Payment Month	December 2025
Who Will Receive It	Households on qualifying low-income benefits
Application Process	None required – automatic payment
Payment Method	Direct bank transfer
Benefits That Qualify	Universal Credit, JSA (income-based), ESA (income-related), Income Support, Pension Credit
Expected Payment Window	First three weeks of December 2025
Payment Identifier	DWP COL or HMRC COL on bank statements
Applies to Working Tax Credit Recipients	Yes, with slightly delayed payment date
Government Department Handling Payment	Department for Work and Pensions (DWP) and HMRC

What is the Cost of Living Payment?

The cost of living payment is a financial support measure introduced by the government to help those who are struggling the most. It is not new. These payments have been offered in previous years, especially during the winter season, to help people manage basic needs like heating, food, and electricity. With prices still high in 2025, this extra help can be crucial for many families and individuals.

Unlike general benefit increases or adjustments, this payment is made as a separate amount and does not affect other entitlements. It is targeted, practical, and timely. The £375 Cost of Living Payment is meant to provide that much-needed relief exactly when it is needed the most.

Eligibility Criteria

To receive the £375 Cost of Living Payment, you must be receiving one of the specific qualifying benefits during a set period. This period, often referred to as the qualifying window, is expected to fall between September and October 2025. Eligibility depends on whether you received a payment for any of the qualifying benefits during that time.

The payment is aimed at those who are most financially vulnerable. Even if you only received a very small amount, like just one penny, during the qualifying period, you would still be eligible for the full payment. This ensures that the money reaches the people who need it most.

Qualifying Benefits for Support

Here is a quick look at the benefits that make you eligible for the £375 Cost of Living Payment:

• Universal Credit
  
• Income-based Jobseeker’s Allowance (JSA)
  
• Income-related Employment and Support Allowance (ESA)
  
• Income Support
  
• Pension Credit
  

These benefits must have been active during the qualifying window. The payment will be made to the same bank account where you normally receive your benefits. It is important to note that just being on one of these benefits during the right period is enough to qualify.

Expected Payment Dates

Although the exact dates are still to be confirmed by the Department for Work and Pensions, past payment patterns give us a good idea of what to expect. Most payments are likely to be made during the first three weeks of December 2025.

The aim is to provide this support before the holidays and before the coldest part of the year sets in. Those receiving Working Tax Credit or Child Tax Credit may see their payment arrive slightly later than others, often a few days after the main group. Once confirmed, the government will share the official payment window.

No Need to Claim: Automatic Payments

The best part about the £375 Cost of Living Payment is that it is completely automatic. There is no application form, no phone calls needed, and no waiting list. If you are eligible, the payment will land directly in your bank account.

This is one of the ways the government is keeping things simple and efficient. The payment will come with a label like “DWP COL” or “HMRC COL” in your bank statement so you know exactly what it is. This system helps ensure people do not miss out on what they are entitled to.

Warning on Scams

Whenever money is involved, scams tend to increase. It is very important to stay alert. Some scammers may try to trick people by pretending to be from the DWP or HMRC, asking for personal or bank details. These are fake messages.

The government will never ask you to provide information over email, text, or phone for the £375 Cost of Living Payment. Always refer to the official GOV.UK website if you are unsure. If you receive a suspicious message, do not click on any links or give out any information.

The Role of the Payment in Winter Support

Winter is already an expensive season, and for low-income households, it can be especially difficult. Rising heating bills, festive expenses, and high food prices all add up quickly. The £375 Cost of Living Payment is designed to ease some of that pressure.

This payment is part of a larger support plan that includes energy discounts and seasonal financial aid. It is intended to prevent people from falling behind on bills or going without essentials. When combined with other programs, this payment becomes a vital lifeline.

Other Winter Financial Help

Besides the £375 Cost of Living Payment, here are some other helpful winter support programs you may qualify for:

• Winter Fuel Payment: Provides between £250 and £600 to help with heating if you were born on or before 25 September 1958.
  
• Warm Home Discount Scheme: Offers a one-time £150 discount on your electricity bill between October and March.
  
• Cold Weather Payments: Gives £25 for each seven-day period of freezing weather, from November through March, to those receiving certain benefits.
  

These programs work alongside the cost of living support to help you manage your winter expenses better.

FAQs

Who qualifies for the £375 Cost of Living Payment?
Anyone receiving eligible low-income benefits such as Universal Credit or Pension Credit during the qualifying period is likely to qualify.

Do I need to apply for the payment?
No. The payment is made automatically if you meet the eligibility criteria. No application is required.

When will the payment be made?
It is expected in December 2025, most likely within the first three weeks. The exact dates will be announced by the government.

What does the payment look like in my bank account?
You will see it with a payment reference such as “DWP COL” or “HMRC COL” in your bank statement.

Can I still get the payment if I only received a small amount of benefit?
Yes. As long as you received at least one penny of the qualifying benefit during the assessment period, you will get the full £375.