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Home»News»Government issues update on cost of living payments this year
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Government issues update on cost of living payments this year

nytimespostBy nytimespostMay 7, 2025No Comments
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MILLIONS of cash-strapped Brits hoping for another Cost of Living Payment this year are out of luck – with the government confirming there’ll be no more cash handouts in 2025.

Between 2022 and 2024, the Department for Work and Pensions (DWP) dished out a series of one-off payments to help struggling households cope with soaring bills and rocketing inflation.

Department for Work & Pensions sign.

1

The Government has said it will not make any more cost of living paymentsCredit: Getty

The cash boosts – worth anything from £150 to £326 – were aimed at those on the lowest incomes, as well as pensioners and disabled claimants.

But now the DWP has made it crystal clear: no new payments are coming this year.

An update published on GOV.UK this week confirmed that “DWP is not planning to make any more Cost of Living Payments”.

Instead, those who are still finding it hard to make ends meet are being urged to check for unclaimed benefits or alternative support schemes – but watch out for scams. 

Fraudsters are already targeting vulnerable people with fake texts and emails asking for personal info to “apply” for non-existent payments.

What support did people get before?

Here’s a quick look back at what’s already been paid out:

  • Low-income benefits and Tax Credits:
    Payments of £326, £324, £301, £300 and £299 for those on benefits such as Universal Credit, Tax Credits or Pension Credit.
  • Disability benefits:
    £150 Disability Cost of Living Payments, issued twice, for claimants on PIP, DLA, Attendance Allowance and other disability benefits.
  • Pensioners:
    £150 or £300 extra added to the Winter Fuel Payment, giving some older Brits up to £600 to help with heating bills across winters 2022/23 and 2023/24.

But all that has now ended – and there’s no sign of a follow-up round.

What help is still available in 2025?

Although the Cost of Living Payments have ended, there is still help out there for households in need:

Household Support Fund (HSF)

If you’re struggling to pay for essentials including food, water, energy bills or toiletries, your local council might be able to help.

Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence

The fund, which is backed by the DWP, runs from April 1, 2025 until March 31, 2026 – but how much you get, and whether you’re eligible, will depend on where you live.

Some families have received up to £500 in support – either as a bank transfer, shopping voucher or bill payment.

For example, in March, residents in Redcar and Cleveland were able to claim £120 which was transferred directly into their bank accounts.

Energy grants 

Most of the UK’s big energy firms offer hard-up customers grants to help clear unpaid bills – and some are worth up to £1,700.

The British Gas Energy Trust is open to everyone – even if you’re not with British Gas – and hands out grants to help clear energy debt between £50 and £1,700.

You’ll only be able to apply once every two years, so it’s worth checking if you’re eligible before you dive in.

Meanwhile, suppliers including EDF, E.ON Next, Scottish Power, Octopus and OVO all run their own hardship funds too.

EDF, for example, knocks an average of £1,250 off bills for struggling customers.

Support will depend on your energy debt, household income and what benefits you’re getting – so speak to your supplier directly to see what you could claim.

Prepayment meter help 

If you’re on a prepay meter and can’t afford to top up, your energy firm should give you a bit of emergency credit – often around £20 – to tide you over.

You’ll need to pay it back later, but it’ll keep the lights and heating on when you’re struggling.

Be aware: if you haven’t topped up in a while, you could also owe standing charges, which are daily fees just for having gas or electric connected – even if you’re not using much.

If you’re in real trouble, contact your local council, Citizens Advice or a nearby food bank – they can often help with extra support or vouchers.

Where is the HSF available?

Plymouth – up to £740

Plymouth City Council said eligible residents can receive a maximum of £740 in vouchers. This includes £240 in supermarket vouchers for either Asda, Morrisons, Tesco, Sainsburys, Aldi, or Iceland, and £200 in energy vouchers. It also includes an essential item of household furniture or white goods or £300 of clothing vouchers.

Blackpool – up to £300

Households with one or two people – including children – will see £200 paid directly to their energy provider. Those with three or more will get £300 paid towards their energy costs.

Middlesbrough – up to £70

People in the area who claim benefits and do not have children can apply for a £50 voucher. Those living alone will get up to £37.50 and couples will get £50. If there are children in your household, you’ll get a voucher for £70 per child.

Leicestershire – up to £300

Households in Leicestershire can apply for £300 per household, which will be paid in the form of vouchers to support with gas, electricity and food. The payment can be delivered as a Post Office voucher, which can be redeemed for cash to help with gas, electricity or water, or an e-voucher to help with food costs that can be converted to a gift card for major supermarkets.

Leeds – up to £100

Residents of Leeds who receive council tax support with dependent children can claim up to £100, while those without children could receive £25. Eligible households will have received letters featuring a barcode that can then be taken to the post office along with ID to claim the cash.

Bracknell Forest – up to £315

Applicants could be eligible for a one-off £105 payment per child between now and September, if applicants meet the qualifying benefits.

Cambridgeshire County – up to £220

Low-income households in Cambridgeshire can apply for a financial award of £110 per household. Residents can apply twice for support between now and September 30, meaning each household could receive as much as £220. The funds can be paid in a lump sum of £110 or as vouchers.

Falkirk – up to £470

The amount residents can get under the HSF depends on the number of people in their household. A single adult will receive £110, with an additional £90 payment made for every further resident. For example, a couple with no dependent children would receive £200.

Stockport – up to £315

Stockport Council is giving out vouchers worth £105 to families struggling to pay for essentials. The fund is paid per child, so if you have three children you would be entitled to £315 worth of supermarket vouchers.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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Wayfair is selling slashed privacy fence for just £17 – giving “Instagram worthy” garden glow-up

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