The UK government issued extra Cost of Living Payments to help low-income households manage rising bills. During 2024, eligible benefit claimants received up to £900, paid automatically in three instalments directly into their bank, building society, or credit union accounts. Pensioner households also received a one-off top-up alongside the Winter Fuel Payment, while disabled claimants were awarded a separate lump sum.
However, Department for Work and Pensions (DWP) has now confirmed there will be no new £900 Cost of Living Payment in 2025. Instead, families facing continued financial pressures this year will need to rely on local Household Support Fund grants, energy discounts, and routine benefit increases, as inflation is forecast to rise again later in 2025. Here’s everything you need to know about the latest support available.
DWP Cost of Living Payment 2025 – What You Need to Know
DWP 2025 Cost of Living Payments: £301 to £600 – Full Update With New Support Options
£900 Cost of Living Payment 2025
There is no new £900 Cost of Living Payment for 2025. The previous £900 package, paid across three instalments in 2023–24, has ended.
Eligible households earlier received:
- £301 (April–May 2023)
- £300 (October–November 2023)
- £299 (February 2024)
Payments were automatic for people on Universal Credit, Pension Credit, Income Support, ESA, JSA, Working Tax Credit, or Child Tax Credit.
For 2025, the government has instead increased benefits and pensions by 6.7% from April to match inflation. No new lump-sum cost of living payments are planned. Households needing extra help are advised to check the Household Support Fund and local council grants. The DWP has confirmed all official payments are automatic.
| Topic | Details (2025 Update) |
|---|---|
| £900 Cost of Living Payment | No new payment announced for 2025 |
| Last Payment Made | Final £299 paid in February 2024 |
| Who Qualified Before | Universal Credit, Pension Credit, Income Support, ESA, JSA, Working/Child Tax Credit recipients |
| 2025 Status | Scheme closed; no plans to extend into 2025 |
| Alternative 2025 Support | Benefit and pension increases by 6.7% (April 2025) |
| Official Advice | No need to apply; watch out for scam messages |
Who Was Eligible for the £900 Cost of Living Payments 2025?
The £900 Cost of Living Payment is for households on means-tested benefits, including Universal Credit, Income-based JSA, Income-related ESA, Income Support, Working Tax Credit, Child Tax Credit, and Pension Credit. It excluded non-means-tested benefits like New Style JSA and ESA. Separate payments include £150 for disability benefit claimants (PIP, DLA, Attendance Allowance) and £300 for pensioners through the Winter Fuel Payment. Only those on means-tested benefits receive the full £900. The qualifying dates have passed GOV.UK confirms.
Payment Dates and Current Status
The final instalments under the previous scheme is now completed. Official guidance states that if your benefit details changed such as a new address or bank account payments may have been delayed slightly. As of May 2025, neither the DWP nor HM Treasury has confirmed any new one-off grants. The latest DWP guidance on Cost of Living Payments 2025 last updated in May 2025, makes no reference to further support beyond that period.
What Other Support Is Planned in 2025?
There will be no new £900 Cost of Living Payment in 2025, but regular support schemes continue.
- Winter Fuel Payment 2024/25: Pensioners born on or before 25 September 1958 will get £200 or £300, depending on age. £200 if born between 23 September 1944 and 22 September 1958 and £300 if born before 23 September 1944. Payments will be made automatically in November or December 2025, into existing benefit accounts. No application needed. The scheme remains unchanged. In Scotland, a separate Winter Heating Payment applies.
- Pensioner Cost of Living Payment 2025: No new pensioner top-up has been announced for 2025. In 2023/24, pensioners received a £300 extra payment with the Winter Fuel Payment. For 2025, only the standard Winter Fuel Payment is planned unless the government introduces further help.
- Disability Cost of Living Payment 2025: Disabled claimants received a £150 payment in 2023. No new Disability Cost of Living Payment is planned for 2025. Claimants will continue receiving normal disability benefits like PIP, DLA, and Attendance Allowance.
Living Costs in 2025
The outlook for prices in 2025 remains a concern. After peaking at around 10–11% in late 2022, inflation has fallen but is expected to rise slightly again this year. The Office for Budget Responsibility forecasts average CPI inflation of around 2.6% in 2025, driven largely by higher gas and electricity prices.
Families could face another wave of price rises by mid-2025, particularly from energy costs, before inflation settles closer to 2%. The Bank of England has also warned of a temporary spike, with inflation expected to reach around 3.7% by late 2025 due to global energy pressures.
In this context, the government has focused on maintaining existing support schemes rather than introducing new one-off payments. The DWP continues to highlight support through schemes like the Household Support Fund, energy discounts, and disability and pension supplements. With household budgets still under strain, families will need to rely on these targeted measures if costs continue to rise.