Despite widespread misinformation circulating online, the Department for Work and Pensions (DWP) has officially confirmed that no Cost of Living Payments are scheduled for October 2025 or any time in 2025. This article provides accurate information about what support is actually available.
The Official Position on Cost of Living Payments
The DWP made it clear in their May 2025 update on GOV.UK that they are “not planning to make any more Cost of Living Payments.” The scheme, which provided crucial support between 2022 and 2024, officially concluded with the final payment made in February 2024.
This decision has been consistently communicated across official government channels, yet misleading information continues to circulate on social media and unofficial websites claiming new payments are coming in 2025.
What Were Cost of Living Payments?
Cost of Living Payments were a series of one-off, tax-free payments introduced by the government to help vulnerable households cope with the sharp rise in living costs that began in 2021. The scheme was designed as temporary relief during a period when inflation reached 11.1% in October 2022 – a 41-year high.
The Payment Structure (2022-2024)
The scheme consisted of three main payment types:
Means-Tested Benefit Payments: Recipients of Universal Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Pension Credit, and Tax Credits received multiple payments totaling up to £900. These were distributed in instalments of £326, £324, £301, £300, and £299 between 2022 and 2024.
Disability Cost of Living Payments: People receiving certain disability benefits, including Personal Independence Payment (PIP), Disability Living Allowance (DLA), and Attendance Allowance, received additional £150 payments.
Pensioner Cost of Living Payments: Households eligible for Winter Fuel Payments received extra support of £150 to £300 on top of their regular winter fuel allowance.
Why The Scheme Ended
The government has shifted its approach from one-off payments to permanent increases in regular benefit rates. In April 2024, benefits increased by 6.7% in line with inflation, providing ongoing rather than temporary support.
The decision to end Cost of Living Payments reflects several factors:
Economic Stabilization: Inflation has decreased significantly from its 2022 peak, though it remains above the Bank of England’s 2% target.
Welfare Reform Focus: The government is concentrating on broader welfare reforms, including the continued rollout of Universal Credit and reforms to disability benefit assessments.
Fiscal Considerations: The payments cost over £11 billion in 2023-24 alone, representing a significant public expenditure during a period of economic constraint.
Current Support Available in 2025
While Cost of Living Payments have ended, several support schemes remain available for struggling households:
Household Support Fund
The most significant ongoing support comes through the Household Support Fund (HSF), which has been extended through local councils. This provides grants, vouchers, and direct assistance for:
- Essential bills and energy costs
- Food and household essentials
- Emergency financial assistance
- School holiday food vouchers
Each local authority administers its HSF differently, with varying eligibility criteria and application processes. Some councils offer grants of £100-£300 per household, while others provide vouchers or direct bill payments.
Winter Fuel Payments
Pensioners continue to receive Winter Fuel Payments of £200-£300, depending on their age. These are paid automatically between November and December to those born before 25 September 1958.
Energy Support Schemes
Warm Home Discount: A £150 discount applied directly to electricity bills for eligible low-income households between October and March.
Energy Company Obligation (ECO): Free or subsidized home insulation and heating improvements for qualifying households.
Priority Services Register: Additional support from energy suppliers for vulnerable customers, including advance warning of planned power cuts and priority reconnection.
Regular Benefit Increases
Benefits increase annually in line with inflation. The 2024 increase of 6.7% was significant, and future increases will continue to be linked to the Consumer Prices Index.
Local Welfare Assistance
Many local councils operate emergency assistance schemes providing:
- Crisis loans and grants
- White goods and furniture assistance
- Emergency food vouchers
- Debt advice and support
Warning About Misinformation
Unfortunately, numerous websites and social media accounts continue to spread false information about new Cost of Living Payments being available in 2025. These misleading claims can cause significant confusion and disappointment.
Red Flags to Watch For:
- Claims about specific payment dates for new Cost of Living Payments
- Suggestions that applications are needed for these payments
- Websites asking for personal information to “apply” for payments
- Social media posts sharing unofficial payment schedules
Always Verify Information Through:
- GOV.UK (the official government website)
- Direct contact with DWP helplines
- Your local council’s official website
- Citizens Advice or other established advisory services
Alternative Sources of Help
If you’re struggling financially, several organizations can provide assistance:
Turn2Us: Offers a comprehensive benefits calculator and grant search tool to identify unclaimed benefits and charitable grants you might be eligible for.
Citizens Advice: Provides free advice on benefits, debt, housing, and employment issues, with local offices offering face-to-face support.
StepChange: Offers free debt advice and can help negotiate payment plans with creditors.
Local Food Banks: Trussell Trust and independent food banks provide emergency food assistance. Referrals are typically made through local agencies.
Charitable Grants: Many charities offer one-off grants for specific circumstances, such as bereavement, illness, or disability.
What The Future Holds
While no new Cost of Living Payments are planned, the government continues to monitor economic conditions. The Office for Budget Responsibility forecasts inflation to rise slightly to around 2.6% in 2025, with some projections suggesting it could reach 3.7% by late 2025 due to global energy pressures.
If economic conditions significantly worsen, the government may consider additional support measures, but any such decisions would be announced through official channels rather than leaked through unofficial websites.
Protecting Yourself From Scams
The confusion around Cost of Living Payments has created opportunities for scammers. Be aware that:
- The DWP will never ask for bank details via text or email
- Legitimate payments are always made automatically to existing benefit recipients
- Any request to “apply” for Cost of Living Payments should be treated as suspicious
- Official communications will come through your usual benefit channels
If you receive suspicious messages:
- Forward emails to [email protected]
- Forward text messages to 7726
- Report phone scams to Action Fraud on 0300 123 2040
Making The Most of Available Support
To maximize the support available to you:
Check Your Benefit Entitlement: Use online calculators to ensure you’re claiming everything you’re entitled to. An estimated £23 billion in benefits goes unclaimed annually.
Keep Information Updated: Ensure the DWP has your current address and bank details to avoid delays in payments.
Contact Your Local Council: Ask about local welfare assistance and Household Support Fund availability in your area.
Seek Debt Advice Early: If you’re struggling with bills, contact debt advice services before the situation becomes unmanageable.
Energy Efficiency: Take advantage of free home energy assessments and insulation schemes to reduce long-term costs.
Looking Ahead
While the end of Cost of Living Payments represents a significant change for many households who relied on this support, various forms of assistance remain available. The key is knowing where to look and being wary of misinformation that can waste time and create false hope.
The government’s approach has shifted from emergency one-off payments to sustained support through regular benefit increases and targeted local assistance. While this may not provide the same immediate impact as lump-sum payments, it offers more predictable, ongoing support.
For those continuing to face financial hardship, the combination of increased benefits, local council support, energy schemes, and charitable assistance can provide meaningful help. The crucial step is taking action to access these resources rather than waiting for payments that aren’t coming.