In recent years, the UK has faced a surge in the cost of living—driven by inflation, energy crises, and overall economic pressure. From 2022 to 2024, millions of households relied on the DWP Cost of Living Support to ease their financial stress. These payments were vital lifelines for people receiving Universal Credit, Pension Credit, and other means-tested benefits.
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However, as of May 2025, the UK government has confirmed that there will be no new Cost of Living Payments this year. While this may feel disappointing to many struggling households, several alternative support programs remain active.
Let’s break down what’s changed in 2025, what’s still available, and how you can continue to receive help through government schemes.
Recap: What Were the DWP Cost of Living Support Payments?
Between 2022 and 2024, the government provided targeted payments to help families cope with rising costs. These were known as Cost of Living Payments and were issued by the Department for Work and Pensions (DWP).
Here’s a quick overview of one of the most discussed payments:
| Details | Information |
|---|---|
| Payment Amount | £326 (first installment) |
| Eligibility | People on means-tested benefits like Universal Credit, Pension Credit, income-based JSA/ESA |
| Payment Method | Automatically deposited into the recipient’s bank account |
| Tax Status | Non-taxable |
| Impact on Benefits | No impact on existing benefits |
The DWP Cost of Living Support reached millions, offering critical relief to those facing higher food, fuel, and housing costs. These payments did not affect existing benefit entitlements and required no separate application.
No New Cost of Living Payments in 2025 – What It Means
In May 2025, government officials confirmed that no new Cost of Living Payments will be issued this year. So, if you were expecting a £326-style payout in June 2025, it will not happen.
But that doesn’t mean you’re entirely on your own. Recognizing the ongoing struggles many low-income households face, the government continues to fund and promote alternative support programs, many of which are still managed or supported by DWP.
Let’s explore them.
Alternative Support Schemes Available in 2025
Although the main DWP Cost of Living Support payments have ended for now, several meaningful support options are still in place to help vulnerable individuals and families manage their expenses.
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1. Household Support Fund (HSF) – Extended Until March 2026
The Household Support Fund is one of the most important programs still running in 2025. Administered by local councils, the fund offers:
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Emergency cash payments
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Food vouchers
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Utility bill support
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Help with essential household items
Each council has its own eligibility criteria and distribution method. For example, in Leeds, eligible residents may receive up to £125 in financial support.
✅ Tip: Visit your local council’s website or contact them directly to check availability and apply.
2. Energy Bill Support Programs
Rising energy bills continue to strain UK households. Thankfully, multiple government-supported programs are helping reduce those costs:
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Warm Home Discount Scheme: Provides a one-time £150 reduction on energy bills for eligible low-income households.
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ECO4 Scheme: Offers support for home energy efficiency improvements like insulation and boiler upgrades, aimed at lowering long-term energy consumption.
These are separate from the main DWP Cost of Living Support, but they still offer real savings for qualifying households.
✅ Tip: Contact your energy provider or visit GOV.UK to check your eligibility.
3. £150 Disability Support Payment in June 2025
Though no general Cost of Living Payments will be made in 2025, a special one-time £150 payment will be issued to individuals receiving certain disability-related benefits. These include:
-
Personal Independence Payment (PIP)
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Disability Living Allowance (DLA)
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Attendance Allowance
This payment will be automatically deposited into eligible accounts in June 2025—no application necessary.
✅ Tip: Double-check your benefit status to ensure you qualify and keep an eye on your account in June.
Useful Resources to Get Help
Navigating government aid programs can feel overwhelming, but these resources can guide you through the process:
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GOV.UK – The official government website for all support schemes, benefits, and updates.
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Citizens Advice – Offers free, confidential help with understanding your rights, benefits, and available financial aid.
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Local Councils – Many programs like HSF are managed by councils; visit your council’s site for local details and applications.
FAQs About DWP Cost of Living Support
1. Who qualified for the £326 DWP Cost of Living Payment?
Anyone receiving benefits like Universal Credit, Pension Credit, Income Support, or income-based JSA/ESA.
2. Did I have to apply for the £326 payment?
No. Payments were issued automatically to those who qualified.
3. Will I receive another £326 payment in 2025?
No, the government has confirmed that no new Cost of Living Payments will be issued this year.
4. Are there still other ways to get financial help?
Yes. Programs like the Household Support Fund, Warm Home Discount, and disability payments are still available.
5. Will the £150 disability payment affect other benefits?
No. This is a separate, non-taxable payment and does not affect your other benefits.
Conclusion: Help Is Still Available
Although the DWP Cost of Living Support payments have ended for now, several alternative programs are still active to help you manage everyday costs. From the extended Household Support Fund to one-time disability payments and energy assistance, there are multiple resources available if you know where to look.
Make sure to contact your local council, explore GOV.UK, and reach out to Citizens Advice for the most accurate and timely information. Even if large-scale payments like the £326 installment are not returning this year, real support is still within reach.
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