The UK government continues to offer cost of living support for struggling households, especially amid rising prices of food, energy, and other essentials. This August, a £90 free support payment is set to reach the accounts of eligible families. But who qualifies? When will the payment arrive? And how can you ensure you don’t miss it?
In this article, we’ll walk you through everything you need to know about the £90 Cost of Living Payment for August 2025 – including eligibility criteria, payment dates, how to claim, and what to do if you don’t receive it.
What is the £90 Cost of Living Payment?
The £90 payment is part of a targeted support scheme designed to ease financial stress for low-income and vulnerable households. While not as large as previous payments like the £301 or £299 instalments in 2023–24, this new £90 aid is especially aimed at families who continue to struggle in 2025.
It comes under the broader cost of living assistance measures by the Department for Work and Pensions (DWP) and local authorities. The goal is simple – help UK families cope with increasing bills, food prices, and school holiday expenses.
Why August Support Matters
August is a challenging month for many UK families. With children on summer break and increased home consumption of food, energy, and daily necessities, many households find their budgets stretched thin. The £90 payment aims to fill this financial gap during the summer period, providing timely relief.
It may not seem like a huge amount, but for those living paycheck to paycheck, every bit helps – especially when school uniform purchases, childcare costs, and utility bills all rise at the same time.
Who is Eligible for the £90 Payment?
Eligibility for this August 2025 payment is largely based on whether you are already receiving certain benefits. You may qualify if you were receiving any of the following benefits during a specified qualifying period:
- Universal Credit
- Child Tax Credit
- Working Tax Credit
- Income Support
- Pension Credit
- Jobseeker’s Allowance (income-based)
- Employment and Support Allowance (income-related)
Additionally, some households may qualify if they are on Housing Benefit and meet local criteria under discretionary support funds provided by local councils.
The government will likely use a qualifying week (usually a specific week in June or July) to assess benefit status and determine eligibility. So, if you received one of these benefits during that week, you may be in line for the £90 payment.
How Will You Receive the Payment?
Good news – you don’t need to apply separately. If you qualify, the £90 will be paid automatically into the bank account where you already receive your benefits or tax credits.
The payment reference on your bank statement may read something like “DWP COL Payment” or “HMRC COL August”, depending on the agency issuing your support.
There is no need to call or fill out forms, as the system uses existing records to process the payment. However, it’s always good to double-check your details on your Universal Credit or HMRC account to avoid errors.
When Will the Payment Arrive?
The exact payment date hasn’t been confirmed yet, but based on previous trends, it is expected to land in accounts between August 12 and August 23, 2025.
DWP and HMRC usually issue official confirmation of payment windows via press releases and website updates a few weeks prior. So, keep an eye out for government announcements during the last week of July.
Payments may be made in batches, so don’t worry if your friend or neighbour receives theirs a few days earlier than you. If you’re eligible, your payment will come – just a matter of when.
What If You Don’t Receive It?
If you believe you are eligible but don’t receive the £90 support by the end of August, here’s what you should do:
- Double-check eligibility: Revisit the list of qualifying benefits and make sure you were receiving them during the qualifying week.
- Wait for full rollout: Payments can take up to 10 working days to complete, especially in large batches.
- Check with your benefit provider: Log in to your Universal Credit or HMRC online portal to ensure your details are accurate.
- Contact DWP or HMRC: If everything seems right but you still haven’t received payment by early September, get in touch with the department handling your benefit.
What Can You Use the £90 For?
The payment is not ring-fenced, meaning you can use it for any immediate expense. However, most families typically spend it on:
- Utility bills (gas, electric, water)
- Weekly groceries
- School uniforms and supplies
- Transport costs
- Rent shortfalls
Since this support is provided in one lump sum, many households plan their spending carefully to ensure it stretches across the month.
Can You Claim If You Work?
Yes, you may still qualify even if you’re working – particularly if you’re on Universal Credit or Working Tax Credit. The benefit system in the UK is designed to support low-income working families, so don’t assume you’re excluded just because you’re employed.
If you meet the income thresholds and received the relevant benefits during the qualifying period, you’re likely eligible for the August support.
Is This Payment Taxable?
No, the £90 cost of living payment is non-taxable. It will not count towards your benefit cap or affect your future benefit entitlement. You don’t need to report it as income for tax purposes or when applying for any other assistance.
This makes it a truly free support measure for families needing urgent financial help during the summer.
What About Other Cost of Living Support?
The £90 payment is just one of several ongoing support schemes. Depending on your circumstances, you may also be eligible for:
- Warm Home Discount (usually issued in winter months)
- Household Support Fund (offered through local councils)
- Free School Meal vouchers during holidays
- Council Tax Rebate or Water Bill Reduction
- Fuel vouchers in emergency situations
These schemes vary by location and benefit status, so it’s worth checking with your local authority or Citizens Advice to find out what else you might claim.
How to Stay Updated
The easiest way to stay informed about future cost of living support is to:
- Visit the gov.uk official page regularly
- Sign up for HMRC/DWP updates via email
- Follow reliable news outlets like BBC News or MoneySavingExpert
- Check your benefit account dashboard weekly
Staying alert to new announcements ensures you never miss a payment or deadline.
Scams and Warnings
Unfortunately, whenever new government payments are announced, scammers try to take advantage of the confusion. Be cautious of:
- Texts or emails asking for bank details
- Social media posts promising extra payments if you “register”
- Calls claiming to be from “benefit officers” demanding information
Always verify information through official government sources. The DWP or HMRC will never ask for sensitive details via phone or message for these automatic payments.
Final Thoughts
The £90 cost of living payment in August 2025 may not solve every financial problem, but it does offer a much-needed cushion for UK families during a high-expense season. If you’re receiving eligible benefits, make sure your records are up to date and your bank details are correct.
Don’t miss out on this helpful support. And if you don’t qualify, explore alternative schemes through your local council – because help is out there, and it’s meant for families like yours.
