The cost of living crisis in the UK continues to impact millions of households, and in 2025, the government has announced additional support to ease financial pressures. Rising food prices, energy bills, and housing costs have pushed many families to the brink. Fortunately, an extra cost of living payment is now on the way for eligible groups. Here’s who qualifies and what this means for you.
2025 UK Cost of Living Help
Inflation rates may have cooled slightly compared to their peak in 2022–2023, but everyday essentials remain expensive. Food prices have continued to outpace wage growth, and rent and mortgage payments are at record highs. Despite efforts by the Bank of England and government policy, many households are still struggling.
In response, the UK government has introduced new measures in 2025, including targeted financial assistance. These efforts aim to prevent further economic hardship and help vulnerable populations manage day-to-day expenses.
Who Will Receive the Extra Payment?
The extra support is not universal; it is targeted. The government is focusing on households already receiving certain means-tested benefits. These include:
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Universal Credit
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Income-based Jobseeker’s Allowance (JSA)
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Income-related Employment and Support Allowance (ESA)
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Income Support
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Working Tax Credit
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Child Tax Credit
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Pension Credit
If you are receiving any of these benefits as of a certain qualifying date (yet to be formally announced), you will be eligible for the extra cost of living payment.
How Much Will You Receive?
While the final figure may vary based on parliamentary approval and budget allocations, the expected payment is around £450. This amount is intended to provide a short-term cushion against rising living costs. It is a one-off, tax-free payment and will not affect your benefits or be counted as income.
How Will Payments Be Made?
The Department for Work and Pensions (DWP) will handle the distribution. Most payments will be made directly into the bank accounts of eligible recipients using the same method they receive their existing benefits. There is no need to apply; if you’re eligible, the payment will be made automatically.
When Will Payments Start?
Payments are expected to begin rolling out in late May 2025. As with previous support schemes, not all payments will be made on the same day. The DWP will release a schedule closer to the rollout date, and payments may continue over several weeks to avoid system overload.
Other Forms of Support in 2025
In addition to the £450 payment, the government is also increasing local council funding for hardship support and energy bill discounts for low-income households. Many councils will offer one-time grants or food vouchers through local welfare assistance programs.
How to Check Your Eligibility
If you’re unsure about whether you qualify, visit the official GOV.UK website or contact your local Jobcentre Plus. You can also speak to a benefits advisor or local council for additional guidance.
Conclusion
The extra cost of living payment in 2025 is a welcome relief for many struggling families. While not a long-term solution, it offers some financial breathing room in a challenging economic climate. Stay informed, check your benefit status, and be ready for the May rollout.