The Department for Work and Pensions (DWP) has officially confirmed that no additional Cost of Living Payments will be made in 2025. A statement released on GOV.UK on May 6 clearly states: “DWP is not planning to make any more Cost of Living Payments.”
This marks the end of the special cost of living support scheme that helped millions of households between 2022 and 2024. However, the government has introduced other forms of financial assistance to support struggling families.
What Were the Previous Cost of Living Payments?
The Cost of Living Payment scheme was launched during the height of the cost of living crisis. These payments ranged from £150 to £326 and were distributed to people receiving certain benefits or tax credits between 2022 and 2024.
The payments were divided into three categories. Low-income benefit recipients received multiple payments totaling up to £900 over the scheme’s duration. Disability benefit claimants received additional £150 payments to recognize their extra costs.
Current Financial Support Available in 2025
Universal Credit Fair Repayment Rate
More than one million households will keep an average £420 more of their benefits each year under a change to Universal Credit that came into force on April 30, 2025. The Fair Repayment Rate has reduced the maximum debt deductions from 25% to 15% of the standard allowance.
This change affects 1.2 million of the poorest households, including 700,000 families with children. The reduction in debt deductions means people can retain more of their benefit payments while still managing their debts responsibly.
Local Council Support Schemes
Many local councils continue offering targeted support through various programs. Supermarket vouchers worth up to £195 are available through councils like Wakefield under the Household Support Fund. Some areas provide £250 energy and council tax support for low-income families.
Windsor and Maidenhead offers £150 cash grants for eligible residents. Rotherham provides energy and council tax support to qualifying families.
Alternative Support Schemes Available
The Great British Insulation Scheme
The Great British Insulation Scheme is helping households lower energy bills through free or discounted insulation upgrades. This long-term solution helps reduce heating costs permanently rather than providing one-off payments.
Help to Save Scheme Expansion
The Help to Save scheme is expanding, allowing eligible workers on Universal Credit to build savings and receive bonuses of up to £1,200 over four years. This encourages financial resilience and helps people build emergency funds.
How to Access Current Support
Check Your Benefit Entitlements
Many people miss out on benefits they’re entitled to receive. Using online benefit calculators can help identify unclaimed support. Ten minutes spent checking could reveal significant financial assistance you’re missing.
Contact Your Local Council
Most councils can assist with checking benefit eligibility and Council Tax discounts. They often have emergency support funds for families facing immediate hardship.
Update Your Details
If you receive any benefits, ensure your bank account details and personal information are current. This prevents delays in receiving any support you’re entitled to.
Beware of Scams
The government warns people to be vigilant against scammers using texts or emails to trick people into applying for cost of living payments. Genuine payments are automatic and never require applications or personal information.
Legitimate payments never require you to provide banking details or personal information via text or email. All genuine government support is processed automatically through existing benefit systems.
Benefits That May Still Qualify for Support
While Cost of Living Payments have ended, people receiving these benefits may access other forms of support:
Universal Credit recipients can benefit from the reduced debt repayment rate. Pension Credit claimants may access additional council support schemes. Personal Independence Payment (PIP) recipients often qualify for local authority assistance.
Working Tax Credit and Child Tax Credit claimants should check for regional support. Employment and Support Allowance recipients may access specialized hardship funds.
Looking Ahead: Future Support
While no £301–£600 payment has yet been signed off, rising living costs and growing political pressure make it likely that further support will be considered later in 2025. Official announcements could follow in coming months, especially around government fiscal updates.
Summer and Autumn Statements may include announcements about additional support measures. The government continues monitoring inflation and living costs to determine if further intervention is needed.
Practical Steps to Take Now
Immediate Actions
Review your current benefits to ensure you’re receiving everything you’re entitled to. Check local council websites for area-specific support schemes that might be available.
Update your contact details with all benefit providers to ensure you receive important notifications. Monitor official government channels for any announcements about new support measures.
Long-term Financial Health
Consider the Help to Save scheme if you’re eligible for building emergency savings. Look into energy efficiency improvements through government schemes to reduce long-term costs.
Explore local foodbanks and community support if you’re struggling with immediate needs. Seek debt advice from Citizens Advice if you’re having trouble managing finances.
Regional Variations in Support
Support varies significantly across the UK. Scotland has different social security arrangements that may provide additional assistance. Wales offers specific support schemes through the Welsh Government.
Northern Ireland has separate arrangements for some benefits and support schemes. Different English regions have varying levels of local authority support available.
Understanding Your Rights
All eligible support is automatic – you should never need to pay fees or provide additional information beyond normal benefit processes. Free advice is available through Citizens Advice, local councils, and benefit helplines.
Appeal processes exist if you believe you’ve been unfairly denied support. Advocacy services can help if you’re struggling to navigate the system alone.
FAQs
Q: Will there be any Cost of Living Payments in 2025?
No, the DWP has confirmed no more Cost of Living Payments will be made.
Q: What support is available instead?
Universal Credit debt repayment changes, local council schemes, and energy efficiency programs.
Q: How much extra will Universal Credit changes give me?
Average households will keep £420 more per year through reduced debt deductions.
Q: Where can I check for local support?
Contact your local council directly or check their website for current schemes.
Q: Are these changes automatic?
Yes, the Universal Credit changes are automatic, and most support doesn’t require applications.
Q: How do I avoid scams?
Remember that legitimate government payments never require you to provide personal details via text or email.
Q: Can I still get help with energy bills?
Yes, through the Great British Insulation Scheme and local council programs.
Q: What if I think I’m missing out on benefits?
Use online benefit calculators or contact Citizens Advice for a free benefits check.
Q: Will there be support announcements later in 2025?
Possible, with potential announcements during Summer or Autumn government statements.
Q: How do I keep updated on new support?
Monitor official GOV.UK announcements and avoid unofficial sources spreading misinformation.