UK 2025 Cost of Living Payment – simple guide
Short answer: There is no Cost of Living Payment for 2025 and the government says no further Cost of Living Payments are planned. If you’re looking for help with bills or falling income, the government points people to other benefits and local support instead.
What was the Cost of Living Payment scheme?
Between 2022 and 2024 the UK ran a series of one-off Cost of Living Payments to help households facing high prices. These were paid automatically to people on certain means-tested benefits and to some pensioners (payments varied by year and benefit). The official GOV.UK guidance explains who was eligible and the amounts paid in previous years.
What the government says about 2025
GOV.UK’s cost-of-living guidance was updated and clearly states: “There will be no Cost of Living Payment for 2025 and there are no more payments planned in the future.” That is the current official position. Independent news reporting and the DWP pages that list past Cost of Living Payments also reflect that no new scheme has been announced.
If you were hoping for another one-off payment — what to do next
Although there’s no new national Cost of Living Payment for 2025, help may still be available:
- Check benefit entitlement — Universal Credit, Pension Credit, Disability benefits, Tax Credits and other benefits can increase income. Use GOV.UK’s benefits checker.
- Energy and bills support — central and devolved governments publish energy or household support programs (and local councils sometimes run hardship or discretionary funds). Check your local council and the UK government pages.
- Council Tax Reduction, crisis funds and local charities — many councils and local charities run one-off help for people in urgent need.
- Speak to your benefits adviser or a charity (Citizens Advice, Turn2Us) for personalised help and to check for backdated payments you may have missed.
Why it ended
There is no detailed public narrative about exactly why the scheme was discontinued beyond budget constraints, changing priorities, or a desire to shift towards more targeted support rather than broad payments. That said:
- The scheme was always intended as temporary relief during a period of acute inflation and cost pressure.
- Government and budget priorities evolve with economic cycles, and a blanket payment may have been judged less sustainable.
- The evaluation of the scheme suggests that, while helpful, the payments did not fully offset cost pressures for all recipients.
- The government appears to want to rely more on long-term benefit adjustments, support funds, and local measures instead.
Why you might still see claims about new payments
Since autumn 2022 many outlets, blogs and social posts have repeatedly suggested new Cost of Living Payments. Some sites publish speculative or incorrect headlines (amounts like “£500” or “£600”) — always check GOV.UK or official DWP announcements before trusting such claims. The authoritative GOV.UK pages are the reliable source.
Summary
- The Cost of Living Payment scheme ran between 2022 and 2024 to help address inflation, energy and living cost pressures.
- In 2025, DWP has confirmed there will be no further Cost of Living Payments.
- But help is still available through benefits, local support funds, pensioner energy schemes, and discretionary assistance.
- If you think you missed an earlier payment, it is possible to ask for reconsideration.
- Be cautious about claims or rumors of new universal lump sums — always cross-check with official government sources.
“Planning your finances around holidays? Check the full list of UK Bank Holidays 2025 to make the most of your time off.”
FAQs
Is there going to be a Cost of Living Payment in 2025 in the UK?
The DWP have not announced any continuation of the Cost of Living Payment scheme that ran between 2022 and 2024. The final payment should have been made to eligible households between 6 February and 22 February 2024.
What is the cost of living in the UK?
London is the most expensive city, while smaller towns and northern regions are generally cheaper. On average, a single person spends about £900–£1,300 per month outside London and £1,300–£1,400 in London on housing, bills, and food. To live comfortably, a monthly income of around £1,500–£2,000 after tax is usually needed.
Are UK households getting 300 government payments for February half term?
The Department for Work and Pensions (DWP) is providing £300 support payments during the February half term through the Household Support Fund. The scheme, extended until the end of March by the Labour government, gives local councils extra funding to help low-income families with essential living costs.
Are UK households to receive up to 500 cost of living payment from DWP in January?
Acknowledging that many vulnerable households continue to face financial hardship, the DWP has announced a targeted £500 payment for eligible families. Unlike previous nationwide cost of living schemes, this support is more focused, aiming to reach those most in need instead of offering a universal payment.
