£500 Cost of Living Support Coming in August 2025 –  Who Qualifies & Payment Schedule

UK households grappling with the ongoing strain of rising prices are set to receive timely financial relief in August 2025. The government has confirmed a one-time £500 Cost of Living Support Grant aimed at low- and middle-income families. This initiative comes as part of the broader strategy to help residents cope with surging inflation, higher energy costs, and rising grocery prices.

With over a million households expected to benefit, this payment is a much-needed lifeline during a period of economic pressure. Here’s everything you need to know about who qualifies, how payments will be distributed, and what to do if yours doesn’t arrive on time.

£500 Cost of Living Support Coming in August 2025

The £500 Household Support Grant is a new, non-repayable payment designed to ease the cost of daily essentials like food, utilities, housing, and childcare. It is part of the government’s larger cost-of-living assistance plan, following previous grants of £299 and £200 earlier in the year.

Unlike a loan, this grant does not need to be paid back, offering families some financial breathing room amid tough economic times. The payment is expected to reach millions and will be distributed via various local authorities in coordination with national departments.

Overview

Feature	Details
Grant Name	£500 Household Support Grant
Payment Date	August 1 to August 31, 2025
Amount	£500 per eligible household
Purpose	To help cover essentials amid rising cost of living
Administered By	Local councils with support from UK Government
Payment Methods	Bank transfer, prepaid card, postal voucher, or digital transfer

Eligibility Criteria

Eligibility for the £500 grant hinges primarily on income level and existing benefit claims. The scheme has been tailored to target those already receiving financial help from the government, as well as households under financial strain not currently on benefits.

You may qualify if you fall under any of these categories:

• Universal Credit recipients
• Pensioners on Pension Credit
• Families receiving Child Benefit
• Households on Housing Benefit
• Individuals receiving disability-related benefits such as:
  • Personal Independence Payment (PIP)
  • Disability Living Allowance (DLA)
  • Attendance Allowance

In addition, households not receiving any of the above but struggling financially may still apply directly through their local council, depending on available funds and individual circumstances.

Payment Schedule

The distribution of the £500 payments will take place throughout August 2025 in a phased schedule. Payments will be staggered based on the type of benefits a household receives to ensure smoother processing.

Here’s the full payment breakdown:

Payment Dates	Eligible Groups	Payment Method
Aug 1–7	Pension Credit & disability benefit claimants	Direct bank transfers
Aug 8–15	Universal Credit & Housing Benefit recipients	Bank transfers or prepaid payment cards
Aug 16–31	Child Benefit claimants & others	Postal vouchers or digital payments

This staged rollout helps local authorities manage the payment system efficiently while ensuring most recipients get their support by the end of the month.

How to Report Missing Payments

If your payment hasn’t arrived by the end of August but you believe you are eligible, there are a few steps you can take:

1. Check your online benefit account (e.g., Universal Credit or Pension Credit) using your National Insurance Number.
2. Contact your local council to inquire about your eligibility or the status of your payment.
3. Call the Department for Work and Pensions (DWP) or use the official GOV.UK website to file a report or submit a complaint.
4. Ensure your bank details and address on file are up to date to prevent payment delays.

Source

FAQs