With energy bills, food prices, and other living costs still weighing heavily on households across the UK, the government has confirmed a £900 Cost of Living Payment for 2025.
Targeted at those on low incomes and means-tested benefits, this support package is part of a broader plan to ease financial pressure on millions of people. Here’s everything you need to know about who qualifies and when you can expect to receive it.
What Is the £900 Cost of Living Payment?
The £900 Cost of Living Payment is a tax-free, non-repayable grant designed to support eligible households in managing rising living costs. It will be paid automatically to qualifying individuals in three separate installments throughout the year, depending on the benefits they receive.
This payment is in addition to other support schemes, like the Winter Fuel Payment and Disability Cost of Living Payments, and is aimed specifically at those receiving means-tested benefits.
Who Qualifies for the £900 Support?
You may qualify for the £900 Cost of Living Payment if you are receiving any of the following benefits:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
Eligibility is determined by whether you received a qualifying benefit during the specific assessment window set for each installment.
Claimants on contribution-based benefits (e.g. contribution-based JSA or ESA) who are not receiving a means-tested top-up do not qualify.
2025 Payment Breakdown and Timeline
The total £900 payment will be distributed in three separate installments over the year to help spread support during key financial periods.
Payment Schedule
| Installment | Amount | Expected Payment Dates |
|---|---|---|
| First Payment | £301 | Late April – Early May 2025 |
| Second Payment | £300 | End of October – Mid November 2025 |
| Third Payment | £299 | Early February 2026 |
These payments will be made automatically into the bank account where you receive your regular benefits. There is no need to apply or contact any agency unless your circumstances have changed.
Important Things to Know
1. No Application Required
If you’re eligible, the payment will be made automatically. You don’t need to apply, fill out a form, or take any additional action.
2. Paid to the Main Claimant
In households with joint claims, such as a couple receiving Universal Credit, the main claimant will receive the full payment.
3. No Impact on Other Benefits
The £900 payment is not taxable and will not affect your eligibility for other benefits, tax credits, or income-related assistance.
Additional Support Available
Aside from the £900 Cost of Living Payment, you may also be eligible for:
- £150 Disability Cost of Living Payment – for individuals on disability-related benefits.
- £300 Pensioner Cost of Living Payment – for those eligible for the Winter Fuel Payment.
- Warm Home Discount – £150 off electricity bills.
- Local Council Support Funds – grants for urgent expenses like food, heating, or white goods.
These payments are separate and may be paid on different dates. If you qualify for multiple programs, you could receive well over £1,000 in total support over the course of the year.
How to Make Sure You Don’t Miss Out
To ensure you receive the full £900 support in 2025:
- Keep your benefit claims up to date – report any change in circumstances (such as income, household members, or address).
- Update your bank details – if you’ve recently switched accounts, notify DWP or HMRC immediately.
- Check your eligibility – especially if you’ve only recently started claiming a qualifying benefit.
If you think you should have received a payment and didn’t, you’ll be able to contact your benefits office after the payment window closes.
The £900 Cost of Living Boost in 2025 offers timely financial support to those who need it most. With payments split across three dates throughout the year, it provides sustained assistance against the ongoing challenges of rising household bills and inflation.
If you’re receiving any of the qualifying benefits, you’ll likely receive the payments automatically—but it’s important to stay on top of updates to your claim and personal information.
With proper planning and awareness, this financial lifeline could help you stay afloat in challenging times.
FAQs
Can I get the £900 payment if I only receive Child Benefit or Contribution-based ESA?
No, only those on means-tested benefits like Universal Credit, Income Support, or Pension Credit qualify. Child Benefit alone does not qualify.
What if my payments stop in between installments—will I still get all three?
You must receive a qualifying benefit during each specific assessment window to be eligible for that installment. Missing one window means missing that portion.
How will I know when I’m getting paid?
You will receive the payment directly into your bank account, and a message may appear in your benefit payment notification or online account summary.