Cost of Living Payment 2025 — Will There Be One?

Complete guide to UK cost of living payments, what replaced them in 2025/26, and what DWP support is still available.

Last updated: 2 April 2026 · Reviewed by Emma Thompson, Senior Financial Content Editor

Key Answer: No Cost of Living Payment in 2025

There is no separate DWP cost of living payment in 2025 or 2025/26. The government confirmed in the Autumn Statement 2023 that one-off cost of living payments would not continue beyond the 2023/24 financial year. The final payment of £299 was issued in spring 2024.

Instead, the government permanently increased benefits by 1.7% for 2025/26 (based on September 2024 CPI). This applies to Universal Credit, PIP, ESA, JSA, and most other DWP benefits. The State Pension increased by 4.1% under the triple lock.

There is no £450 cost of living payment in 2025. Reports of a £450 payment circulating on social media are not accurate. If you see such claims, check official GOV.UK sources.

Contents

  1. Complete Timeline of Cost of Living Payments (2022–2024)
  2. What Replaced the Cost of Living Payment in 2025/26
  3. New Benefit Rates for 2025/26
  4. Who Was Previously Eligible
  5. Other Support Still Available in 2025/26
  6. Eligibility Checker: What Support Can You Get?
  7. DWP Payment Dates and Schedule 2025/26
  8. The £450 Cost of Living Payment Myth
  9. Frequently Asked Questions
  10. Related Calculators
  11. Official Sources

Complete Timeline of Cost of Living Payments (2022–2024)

The DWP cost of living payments were introduced as an emergency response to the energy and inflation crisis that began in 2022. Over a two-year period, the government made five separate payments to eligible households on means-tested benefits. Here is the complete timeline:

14 July – 31 July 2022
£326 — First Cost of Living Payment
Paid to those on means-tested benefits (UC, Tax Credits, JSA, ESA, Pension Credit, Income Support) as of 25 May 2022. Approximately 8.4 million households received this payment.
8 November – 23 November 2022
£324 — Second Cost of Living Payment
Assessment date: 26 August 2022. Combined with the first payment, eligible claimants received £650 across 2022. CPI inflation hit 11.1% in October 2022.
25 April – 17 May 2023
£301 — First 2023/24 Payment
Assessment date for most benefits: 26 January 2023. Tax Credit claimants assessed on 26 January 2023. Paid automatically by DWP or HMRC.
31 October – 19 November 2023
£300 — Second 2023/24 Payment
Assessment date: 18 August 2023. This payment came alongside the Autumn Statement 2023, which confirmed cost of living payments would end.
6 February – 22 April 2024
£299 — Final Cost of Living Payment
Assessment date: 13 November 2023. This was the last-ever DWP cost of living payment. The government replaced one-off payments with permanent benefit uprating from April 2024 onwards.
April 2025 onwards
No Payment — Replaced by Benefit Uprating
Benefits permanently increased by 1.7% for 2025/26. No separate cost of living payment scheduled.
PaymentAmountDate RangeAssessment Date
First 2022 payment£326Jul 202225 May 2022
Second 2022 payment£324Nov 202226 Aug 2022
First 2023/24 payment£301Apr–May 202326 Jan 2023
Second 2023/24 payment£300Oct–Nov 202318 Aug 2023
Final payment£299Feb–Apr 202413 Nov 2023
Total received£1,550Over 5 payments (2022–2024)

Pensioner cost of living payments: In addition to the above, pensioner households also received separate £300 Pensioner Cost of Living Payments in Winter 2022/23 and Winter 2023/24, paid alongside the Winter Fuel Payment. These were separate from the means-tested payments above.

Disability cost of living payments: People on qualifying disability benefits also received separate payments of £150 (September 2022), £150 (June 2023), and £150 (February 2024) — totalling £450 in disability cost of living payments.

What Replaced the Cost of Living Payment in 2025/26?

Rather than continuing one-off payments, the government chose to permanently increase benefit rates each year in line with the Consumer Prices Index (CPI) measured in September of the previous year. This means eligible claimants receive higher regular payments throughout the year, rather than lump sums.

How the Replacement Works

Is the Replacement as Generous?

For most claimants, the combination of the 6.7% increase in 2024/25 and the 1.7% increase in 2025/26 provides more ongoing support than the one-off payments did. Here is a comparison:

ScenarioCost of Living Payments (2023/24)Benefit Uprating (2024/25+)
UC single person (25+)£601 (two payments)£23.80/month extra = £285.60/year (6.7% uplift)
UC couple (both 25+)£601 (two payments)£37.32/month extra = £447.84/year (6.7% uplift)
New State Pension£601 + £300 pensioner payment£17.45/week extra = £907.40/year (8.5% triple lock 2024/25)

Key point: The 6.7% benefit uprating for 2024/25 alone was worth more in annual terms than the £601 in cost of living payments received during 2023/24 for most benefit types. The permanent increase compounds each year.

New Benefit Rates for 2025/26

All DWP benefits were uprated by 1.7% from April 2025 (based on September 2024 CPI of 1.7%). The State Pension increased by 4.1% under the triple lock. Below are the key rates for 2025/26:

Universal Credit Standard Allowance (Monthly)

Claimant Type2024/25 Rate2025/26 RateMonthly Increase
Single under 25£292.11£297.07+£4.96
Single 25 or over£368.74£311.68+£5.27
Joint claimants, both under 25£458.51£466.31+£7.80
Joint claimants, one or both 25+£578.82£489.23+£8.27

State Pension (Weekly)

Pension Type2024/25 Rate2025/26 RateWeekly Increase
New State Pension (full)£221.20£230.25+£9.05
Basic State Pension (full)£169.50£176.45+£6.95

Other Key Benefits (Weekly unless stated)

Benefit2025/26 RateNotes
PIP Daily Living (enhanced)£108.55Per week
PIP Daily Living (standard)£72.65Per week
PIP Mobility (enhanced)£75.75Per week
PIP Mobility (standard)£28.70Per week
Carer’s Allowance£81.90Per week
ESA (Support Group)£138.20Per week (contribution-based)
JSA (25+)£90.50Per week (contribution-based)
Attendance Allowance (higher)£108.55Per week
Child Benefit (first child)£26.05Per week
Child Benefit (additional)£17.25Per week per child
Pension Credit Standard Minimum (single)£218.15Per week (guarantee credit)
Pension Credit Standard Minimum (couple)£332.95Per week (guarantee credit)

Pension Credit: If you are of State Pension age and on a low income, you may be entitled to Pension Credit. Claiming Pension Credit also gives you automatic eligibility for the Warm Home Discount and (from Winter 2024/25) the Winter Fuel Payment. Over 800,000 eligible pensioners are estimated to be unclaimed — check your entitlement on GOV.UK or call the Pension Credit helpline on 0800 99 1234.

Who Was Previously Eligible for Cost of Living Payments?

To receive the DWP cost of living payments (2022–2024), you had to be receiving at least one of the following qualifying means-tested benefits on the relevant assessment date:

Qualifying Benefits

Key Eligibility Rules

Important: If you believe you were eligible for a cost of living payment but did not receive it, you can no longer make a claim. The payment window has closed. If you had an ongoing dispute about a missed payment, contact the DWP on 0800 328 5644.

Separate Disability Cost of Living Payments

In addition to the means-tested payments, people receiving qualifying disability benefits received separate payments:

PaymentAmountDateQualifying Benefits
Disability CoL 2022£150Sep 2022PIP, DLA, AA, Armed Forces Independence Payment, War Disablement Pension
Disability CoL 2023£150Jun 2023Same as above
Disability CoL 2024£150Feb 2024Same as above
Total£450Three payments over 2022–2024

Note: These disability payments were in addition to the means-tested payments. Someone on both Universal Credit and PIP could have received up to £1,550 + £450 = £2,000 in total cost of living payments.

Other Support Still Available in 2025/26

Although the specific cost of living payments have ended, the UK government continues to provide financial support through several schemes. Here is what is still available for the 2025/26 financial year:

Household Support Fund

Varies by council

The Household Support Fund has been extended to March 2026. This fund is distributed by local councils to help vulnerable households with food, energy, water, and other essential costs. Each council decides how to allocate the funding and who is eligible.

How to apply: Contact your local council directly. You can find your council at GOV.UK/find-local-council. Some councils accept online applications; others require phone calls.

Who qualifies: Typically targets families with children, pensioners, disabled people, and those on low incomes who are struggling with essential costs. Eligibility criteria vary significantly between councils.

Warm Home Discount Scheme

£150 one-off rebate

The Warm Home Discount provides a £150 one-off discount on your electricity bill during winter 2025/26. The discount is applied directly to your energy account — you do not receive cash.

Core Group (automatic): If you receive the Guarantee Credit element of Pension Credit, you should receive the discount automatically. Your energy supplier or DWP will write to you.

Broader Group: You may qualify if you are on a low income, receive certain means-tested benefits, and have high energy costs. Your energy supplier determines eligibility using DWP data.

Timeline: Payments are typically made between October and March each winter.

Winter Fuel Payment

£200 or £300

Major change for 2024/25 onwards: The Winter Fuel Payment is now means-tested. Only pensioners receiving Pension Credit (or certain other means-tested benefits) are eligible. Previously, all pensioners received it regardless of income.

Amounts: £200 if born between 23 September 1944 and 22 September 1959. £300 if born before 23 September 1944. An extra £150/£300 Pensioner Cost of Living Payment was included in 2022/23 and 2023/24, but this has now ended.

Impact: Approximately 10 million pensioners lost eligibility for the Winter Fuel Payment. If you are on a low income, claim Pension Credit to potentially restore eligibility.

Cold Weather Payment

£25 per 7-day cold spell

You receive £25 automatically for each 7-day period when the average temperature in your area is recorded as, or forecast to be, 0°C or below. Payments are made between 1 November and 31 March.

Who qualifies: People receiving Pension Credit, Income Support, income-based JSA, income-related ESA, or Universal Credit with certain elements (limited capability for work, disabled child, child under 5).

Council Tax Support (Council Tax Reduction)

Up to 100% reduction

Council Tax Support can reduce your council tax bill by up to 100%, depending on your income, savings, and circumstances. The scheme is run by your local council, and rules vary by area.

How to claim: Apply through your local council. If you are on Universal Credit, Pension Credit, or other means-tested benefits, you are likely to qualify for some reduction.

Free School Meals

Worth £400+ per child per year

Children in Reception, Year 1, and Year 2 in England automatically receive universal free school meals. Beyond this, free school meals are available if the household receives qualifying benefits (Universal Credit with income under £7,400 after tax and benefits, Income Support, income-based JSA, etc.).

Discretionary Housing Payments

Varies

If your Housing Benefit or Universal Credit housing element does not cover your full rent, you can apply to your local council for a Discretionary Housing Payment (DHP). This is a short-term top-up to help cover the shortfall.

Energy Company Obligation (ECO4)

Free insulation & heating upgrades

The ECO4 scheme (running until March 2026) provides free or heavily subsidised home energy efficiency improvements such as loft insulation, cavity wall insulation, and boiler replacements. Eligibility is based on receiving certain benefits and having a low energy-efficiency home.

Contact your energy supplier or the Energy Saving Trust helpline on 0800 444 202.

Eligibility Checker: What Support Can You Get in 2025/26?

Select the benefits you currently receive to see what additional support you may be entitled to. This is a simplified guide — always check GOV.UK or contact the relevant organisation for full eligibility details.

Which benefits do you currently receive?

DWP Payment Dates and Schedule 2025/26

Here are the standard DWP payment schedules for the main benefits. Payments that fall on a weekend or bank holiday are usually made on the last working day before.

Universal Credit Payment Dates

Universal Credit is paid monthly, 7 days after your assessment period ends. Your assessment period is set when you first claim and remains the same date each month. If your payment date falls on a weekend or bank holiday, it is paid on the previous working day.

State Pension Payment Dates

The State Pension is paid every 4 weeks. Your payment day depends on the last two digits of your National Insurance number:

NI Number Ends InPayment Day
00 to 19Monday
20 to 39Tuesday
40 to 59Wednesday
60 to 79Thursday
80 to 99Friday

PIP Payment Dates

Personal Independence Payment is paid every 4 weeks. The day is set when your claim is approved. You can check your next payment date through your PIP online account or by calling the PIP helpline on 0800 121 4433.

Key Bank Holiday Payment Adjustments (2025/26)

Bank HolidayDatePayments Brought Forward To
Early May Bank HolidayMonday 5 May 2025Friday 2 May 2025
Spring Bank HolidayMonday 26 May 2025Friday 23 May 2025
Summer Bank HolidayMonday 25 August 2025Friday 22 August 2025
Christmas DayThursday 25 December 2025Wednesday 24 December 2025
Boxing DayFriday 26 December 2025Wednesday 24 December 2025
New Year’s DayThursday 1 January 2026Wednesday 31 December 2025
Good FridayFriday 3 April 2026Thursday 2 April 2026
Easter MondayMonday 6 April 2026Thursday 2 April 2026

Tip: If you are struggling with the gap between payments, you can apply for a Universal Credit advance which gives you up to one month’s estimated payment upfront. This is repaid over 24 months through deductions from your future payments.

The £450 Cost of Living Payment Myth

You may have seen claims on social media about a £450 cost of living payment in 2025 or a £450 cost of living payment in May 2025. These claims are not accurate. Here is what you need to know:

Fact check: The UK government has NOT announced any £450 cost of living payment for 2025. There is no such payment in the Spring Budget 2025, the Autumn Statement 2024, or any DWP announcement.

Where Did the £450 Figure Come From?

The £450 figure likely originates from one of two sources:

How to Verify DWP Payment Claims

Impact of Ending Cost of Living Payments

The transition from one-off payments to permanent uprating has different effects depending on your circumstances:

Who Benefits From the Change?

Who May Be Worse Off?

Inflation Context

Understanding why the payment ended requires looking at inflation trends:

DateCPI Inflation RateContext
October 202211.1%Peak — cost of living payments introduced
September 20236.7%Used for 2024/25 benefit uprating
September 20241.7%Used for 2025/26 benefit uprating
February 20262.6%Current rate (approximate)

Budgeting Without Cost of Living Payments

If you previously relied on the lump-sum cost of living payments to cover large expenses, here are practical strategies for managing without them:

1. Maximise Your Benefit Entitlement

2. Reduce Energy Costs

3. Access Emergency Support

4. Get Free Debt Advice

If you are struggling with debt, free confidential advice is available from:

Breathing Space scheme: If you are in problem debt, the Breathing Space (Debt Respite) scheme gives you 60 days of legal protection from creditor action while you get professional advice. Ask a debt adviser to apply on your behalf.

Frequently Asked Questions

Will there be a cost of living payment in 2025?
No. The government confirmed in the Autumn Statement 2023 that separate cost of living payments would not continue beyond the 2023/24 financial year. The final cost of living payment of £299 was made between February and April 2024. Instead, the government has permanently increased benefits: by 6.7% for 2024/25 and 1.7% for 2025/26, based on the September CPI rate. This means you receive higher regular payments throughout the year rather than occasional lump sums.
When will the 2025 cost of living payment be paid?
There is no 2025 cost of living payment to be paid. The DWP cost of living payment scheme ended in 2024. The last payment (£299) was made between February and April 2024. Instead of one-off payments, benefits were permanently uprated from April 2025. Your regular benefit payments (Universal Credit, State Pension, PIP, ESA, etc.) already include the 2025/26 increase. There is no additional lump sum payment scheduled.
Why was the cost of living payment stopped?
The cost of living payments were introduced as temporary emergency measures during the 2022–2023 energy and inflation crisis, when CPI inflation peaked at 11.1% in October 2022. As inflation fell significantly (to 4.6% by October 2023 and further to 1.7% by September 2024), the government decided one-off payments were no longer necessary. Instead, benefits are uprated annually by the full September CPI rate, providing ongoing support that compounds each year. The government argued this approach provides more sustainable, long-term support.
What replaced the cost of living payment?
Cost of living payments were replaced by permanent annual benefit uprating at the full September CPI rate. For 2025/26, all working-age and disability benefits increased by 1.7% (September 2024 CPI). The State Pension increased by 4.1% under the triple lock. Specific examples: Universal Credit standard allowance for a single person aged 25+ is now £311.68/month; the new State Pension is £230.25/week. Additionally, several targeted support schemes continue, including the Household Support Fund, Warm Home Discount, Cold Weather Payments, and Council Tax Support.
Am I still entitled to help with cost of living?
Yes, even though the specific cost of living payments have ended, substantial support remains available. The Household Support Fund (extended to March 2026) provides emergency grants through your local council. The Warm Home Discount offers a £150 rebate on electricity bills. Cold Weather Payments provide £25 for each 7-day period of very cold weather. Council Tax Support can reduce your bill by up to 100%. Free school meals, the Healthy Start scheme, and NHS cost exemptions are also available depending on your circumstances. Use the eligibility checker above to see what you may qualify for.
Will there be a £450 cost of living payment in 2025?
No. There is no £450 cost of living payment in 2025. This claim appears to originate from social media misinformation. The £450 figure matches the total of the three disability cost of living payments (£150 × 3) paid between 2022 and 2024 to people on qualifying disability benefits — but these have already been paid and are not being repeated. Always verify payment claims on GOV.UK before relying on social media information.
How much did the cost of living payments total?
Over the lifetime of the scheme (2022–2024), eligible claimants on means-tested benefits received a total of £1,550 across five payments: £326 (July 2022) + £324 (November 2022) + £301 (Spring 2023) + £300 (Autumn 2023) + £299 (Spring 2024). Disability benefit recipients received an additional £450 across three separate £150 payments. Pensioner households also received £300 Pensioner Cost of Living Payments in Winter 2022/23 and 2023/24. The maximum total a person could have received (if on means-tested benefits, disability benefits, and pension age) was £2,300.
Who qualifies for the Household Support Fund?
The Household Support Fund is administered by local councils, so eligibility varies by area. Generally, it is aimed at vulnerable households struggling with food, energy, water, and other essential costs. Priority groups typically include families with children, pensioners, disabled people, and those on very low incomes. Some councils require you to be on benefits; others assess based on income alone. The fund has been extended to March 2026. Contact your local council directly to find out their specific criteria and how to apply — visit GOV.UK/find-local-council.
What is the Warm Home Discount?
The Warm Home Discount is a government scheme that provides a £150 one-off discount on your electricity bill during winter. For 2025/26, you automatically qualify if you receive the Guarantee Credit element of Pension Credit (Core Group). Others on low incomes with high energy costs may qualify through the Broader Group — your energy supplier determines eligibility using data from DWP. The discount is applied directly to your electricity account; you do not receive cash. Participating energy suppliers include British Gas, EDF, E.ON, OVO, Octopus, Scottish Power, and others. The scheme typically runs from October to March each year.

Official Sources

Data verified against official UK government sources. Last checked April 2026. This page is for informational purposes only and does not constitute financial advice. For personal advice, contact Citizens Advice (0800 144 8848) or a qualified adviser.