UK: No more cost of living payments in 2025, DWP confirms as temporary schemes end

The UK's Department for Work and Pensions (DWP) has confirmed there will be no further Cost of Living Payments in 2025.

An update published on May 6 on the GOV.UK website states: DWP is "not planning to make any more Cost of Living Payments.”

Between 2022 and 2024, millions of low-income households, pensioners, and people with disabilities received one-off support payments to help offset soaring energy bills and inflation.

Doleouts

These payments ranged from £150 ($200) to £326 ($435) and were distributed to those receiving benefits such as Universal Credit, Tax Credits, Pension Credit, and disability allowances including PIP and Attendance Allowance.

Winter fuel support

Pensioners also received additional winter fuel support payments of £150 or £300.

With the scheme now concluded, DWP is encouraging individuals to explore other sources of help, such as unclaimed benefits.

Warning against scammers

The department has also warned the public to remain vigilant against scammers pretending to offer new payments via texts or emails.

Despite warmer weather easing energy costs, many households still face financial pressure.

Officials urge people to check eligibility for other support, discounts, and welfare programs.

Support for low-income households

The Department for Work and Pensions (DWP) introduced Cost of Living Payments to support low-income households in the UK during the economic challenges of 2022 to 2024.

These payments were designed to alleviate the financial strain caused by rising inflation, energy costs, and general living expenses.

Why were the payments stopped?

As of May 2025, the DWP has indicated that no further Cost of Living Payments are planned.

This decision aligns with the government's broader welfare reform efforts, including the phasing out of legacy benefits in favour of Universal Credit and the introduction of stricter eligibility criteria for certain disability benefits.

Alternative support available

While the Cost of Living Payments have ended, other forms of assistance remain:

• Budgeting Advance Loans: Interest-free loans up to £812 for unexpected expenses, repayable over 24 months. 

• Household Support Fund: (Extended until April 2025), offering grants or vouchers through local councils to eligible households.