£299 Cost of Living Payment 2025: Will It Return? What Households Should Know

As households across the UK continue to feel the weight of rising food, energy, and housing costs in 2025, many are asking whether the government will issue another £299 Cost of Living Payment. This payment was part of a £900 support package spread across 2023 and early 2024, helping millions manage during the height of inflation. Now, as economic uncertainty remains, the public is looking for answers—will this payment make a comeback?

In this article, we’ll break down the current status of the £299 payment, explore what other financial support is available in April 2025, and offer practical advice for those who may still be struggling. Whether you received the previous payments or not, staying informed could help you plan your next financial steps more confidently.

£299 Cost of Living Payment 2025

The £299 Cost of Living Payment 2025 has not yet been confirmed by the government for this year. This payment was the final installment of a three-part package, following £301 in Spring 2023 and £300 in Autumn 2023. It was issued automatically in February 2024 to people on specific means-tested benefits, including Universal Credit and Pension Credit, and did not require an application.

As of now, there is no official statement from the Department for Work and Pensions (DWP) about its return. However, the government continues to support low-income households through other schemes like the Household Support Fund and recent benefit increases.

Overview Table: Current UK Support in April 2025

Support Type	Status (April 2025)	Access Info
£299 Cost of Living Payment	Not confirmed for 2025	www.gov.uk
Household Support Fund (HSF)	Extended through March 2026	Local council websites
Universal Credit & Benefits	Increased by 1.7% from April 2025	www.gov.uk
State Pension	Increased by 4.1% (triple lock policy)	www.gov.uk
Winter Fuel Payments	Up to £600 for eligible pensioners	www.gov.uk
Cold Weather Payments	£25/week during freezing spells	www.gov.uk

Why the £299 Payment May Not Return

There are a few key reasons why the £299 Cost of Living Payment may not return in 2025:

1. No Official Announcement
 So far, there has been no confirmation from the DWP or UK government about issuing another round of this payment.

2. Shift Toward Targeted Support
 The government is now placing more focus on targeted local relief such as the Household Support Fund, rather than universal payments.

3. Political and Budget Pressures
 With the general election approaching, financial priorities may shift. Political parties may introduce new proposals later in the year, depending on voter demand and inflation rates.

What Financial Support Is Available in April 2025?

Even though the £299 payment is not currently scheduled, several support options remain active:

1. Household Support Fund (HSF)

This is a locally managed fund extended through March 2026. It helps households pay for:

• Food and essential groceries
• Energy and water bills
• Emergency one-off expenses

You don’t need to be receiving benefits to apply. Applications are made through your local council.

2. Benefit and Pension Increases

From April 2025:

• Universal Credit and other working-age benefits increased by 1.7%
• State Pension increased by 4.1%, following the triple lock commitment

These increases help offset some of the ongoing inflationary pressures.

3. Local Council Assistance

Many councils are offering supermarket vouchers, school cost support, and emergency energy payments. These are especially useful for families not covered by national schemes.

4. Winter Energy Relief

• Winter Fuel Payment: Up to £600 for older residents
  
• Cold Weather Payment: £25 per week when temperatures stay below 0°C for 7 consecutive days

These support programs continue throughout winter and are automatically paid to eligible claimants.

Budgeting and Advance Support for Claimants

If you were hoping for the £299 payment but didn’t receive it, or it doesn’t return in 2025, here are some ways to manage finances more effectively:

Budgeting Advances (Universal Credit)

These small advance payments can help cover urgent needs like:

• Appliance repairs
• Work-related travel
• Relocation or temporary housing

They’re repaid in small amounts from future benefits.

Financial Planning Tips

Strategy	What to Do
Check Your Entitlements	Use benefit calculators or gov.uk to ensure you’re claiming everything you’re owed
Budget Smarter	Tools like MoneyHelper or StepChange can help organise spending
Contact Charities	Groups like Turn2Us, Citizens Advice, and StepChange offer grants and guidance
Track Your Spending	Use apps or spreadsheets to monitor weekly expenses

Could a New Payment Be Announced Later?

According to financial experts, a new support payment may still be introduced later in 2025. If inflation rises sharply or public pressure increases, especially in the lead-up to the general election, the government might release a new one-time relief scheme.

This might not be exactly £299, but it could be similar in amount and scope.

Final Thoughts

While the £299 Cost of Living Payment 2025 has not been officially confirmed, that doesn’t mean all support is gone. The UK government continues to provide targeted assistance through the Household Support Fund, benefit increases, and pension enhancements.

If you’re facing financial difficulties this year, check your eligibility for local council programs, track your benefits, and reach out for help if needed. It’s also wise to stay informed through gov.uk or trusted news sources, especially as political changes could bring new announcements later this year.

FAQs