The Department for Work and Pensions (DWP) has confirmed a £250 one-off Cost of Living Payment will begin rolling out from 21 February 2026 to eligible households across the UK.
The payment is designed to provide targeted financial support during late winter, when energy and household costs remain elevated. It will be automatic for qualifying claimants and does not require a separate application in most cases.
Here is what has been confirmed so far.
What Has Changed?
- A £250 one-off payment has been approved.
- Payments begin from 21 February 2026.
- It applies to people receiving certain means-tested benefits.
- It does not replace existing benefits or increase regular entitlements permanently.
The support is temporary and separate from annual benefit uprating.
Why the £250 Boost Is Being Introduced
Although inflation has moderated compared to previous peaks, many households still face:
- Higher-than-pre-2020 food prices
- Elevated energy costs
- Increased rent and mortgage payments
February is traditionally one of the most expensive months for heating, making the timing of the payment significant for low-income families and pensioners.
Who Qualifies for the £250 Payment?
Eligibility is expected to mirror previous DWP Cost of Living Payments.
Qualifying benefits are likely to include:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Tax Credits (in some cases via HMRC)
Claimants must have been entitled to a qualifying benefit during a specific assessment period set by DWP.
State Pension alone does not normally qualify.
Pensioners and Low-Income Households
Pensioners receiving Pension Credit are among the primary groups expected to benefit.
The £250 payment is separate from:
- The Winter Fuel Payment
- The State Pension
Pensioners not currently claiming Pension Credit may wish to check eligibility, as entitlement can unlock access to additional financial support.
When Will Payments Be Made?
Payments begin from 21 February 2026.
The rollout is expected to:
- Take place over several days
- Be staggered depending on benefit type
- Appear automatically in eligible claimants’ accounts
If eligible, you should not need to contact DWP.
How the Payment Will Appear
The £250 will:
- Be paid into the same bank account as your benefits
- Appear as a separate transaction
- Likely include a reference such as “DWP COL”
There is no cheque and no requirement to confirm receipt.
Is the £250 Taxable?
Based on previous schemes, the payment:
- Is not taxable
- Does not count toward the benefit cap
- Is disregarded in means-tested benefit calculations
Final confirmation will be included in official DWP guidance.
Will It Affect Other Benefits?
The £250 boost is expected to be separate from regular entitlements and should not reduce:
- Pension Credit
- Housing Benefit
- Council Tax Reduction
- Universal Credit awards
Claimants should still report any unrelated changes in circumstances to avoid separate overpayment issues.
What If You Don’t Receive It?
If you believe you qualify but do not receive payment:
- Wait until DWP confirms the full payment window has closed.
- Check that you met the qualifying benefit criteria.
- Submit a missing payment query through official GOV.UK channels if necessary.
Bank processing delays can occur.
Scam Warning
Whenever cost-of-living payments are announced, scams increase.
Remember:
- DWP will not text asking for bank details.
- You do not need to apply through unofficial links.
- Payments are automatic for eligible claimants.
Only rely on official GOV.UK communications.
Wider Context
The £250 February 2026 payment follows several previous rounds of cost-of-living support. While economic conditions have improved compared to peak crisis levels, many households remain financially stretched.
This payment reflects continued targeted support rather than a permanent increase in benefit rates.
Practical Advice
If you receive the £250:
- Consider clearing priority bills first
- Top up energy accounts
- Build a small emergency buffer where possible
Local councils may also operate hardship funds alongside national support.
FAQs
When will the £250 payment be made?
From 21 February 2026, with rollout over several days.
Do I need to apply?
No. Most payments will be automatic.
Does State Pension alone qualify?
No, unless combined with Pension Credit.
Will this affect my Universal Credit?
No. It is separate and should not reduce entitlement.
Is the payment taxable?
It is not expected to be taxable.
What if I don’t receive it?
Wait until the payment window ends, then contact DWP if necessary.
Can scammers target this payment?
Yes. Only trust official GOV.UK communications.