£299 Cost of Living Payment 2025: The £299 Cost of Living Payment 2025 has become a key topic for many UK households still struggling with rising prices. Last year, this payment provided vital support to those on low incomes, helping cover everyday expenses like energy bills, food, and housing costs. As we move through 2025, many are wondering if this financial relief will return to ease ongoing pressures caused by inflation.
While there is no official confirmation yet about the return of the £299 Cost of Living Payment 2025, other forms of government assistance remain available. This article explains the current situation, what support you can still access, and practical steps to take if you’re feeling the financial strain.
£299 Cost of Living Payment 2025
The £299 Cost of Living Payment 2025 refers to the final installment of a £900 support package issued between 2023 and 2024. It was paid automatically in February 2024 to people receiving means-tested benefits like Universal Credit and Pension Credit. The payment required no application, was non-taxable, and did not affect other benefits.
Now, in April 2025, the future of this payment is uncertain, with no announcements confirming a repeat this year. However, other targeted support measures continue to help low-income households manage rising living costs.
Overview Table: 2025 UK Support Options
| Support Type | Status (April 2025) | Access Info |
| £299 Cost of Living Payment | Not confirmed for 2025 | www.gov.uk |
| Household Support Fund (HSF) | Extended until March 2026 | Local council sites |
| Universal Credit & Benefits | Increased by 1.7% from April 2025 | www.gov.uk |
| State Pension | Increased by 4.1% under triple lock | www.gov.uk |
| Winter Fuel Payments | Up to £600 for eligible pensioners | www.gov.uk |
| Cold Weather Payments | £25/week during qualifying cold spells | www.gov.uk |
Why the £299 Payment May Not Return
There are several reasons why the £299 Cost of Living Payment 2025 has not been confirmed:
- Upcoming General Election:
With a general election expected later this year, political parties may adjust financial support policies based on public demand and economic conditions. While no plans exist now, new pledges could emerge. - Focus on Targeted Support:
The government is shifting from broad, one-off payments to more targeted schemes, like the Household Support Fund, which is designed to reach those in immediate need. - Economic Strategy:
As inflation stabilises slightly compared to previous years, the government may believe that increasing benefits and pensions is a better long-term solution than additional lump-sum payments.
Current Support Available in April 2025
Even without a confirmed return of the £299 payment, several support options remain active:
1. Household Support Fund (HSF)
This fund has been extended through March 2026. It helps households with:
- Food and grocery costs
- Emergency utility bills
- Unexpected expenses
Applications are made through local councils, and you don’t need to be on benefits to qualify.
2. Benefit and Pension Increases
From April 2025:
- Universal Credit and other benefits rose by 1.7%.
- The State Pension increased by 4.1%, thanks to the triple lock system.
These adjustments aim to keep pace with inflation and protect vulnerable groups.
3. Local Council Assistance
Depending on where you live, councils may offer:
- Supermarket vouchers
- Emergency fuel grants
- Help with school expenses
- Support for essential household items
4. Winter Fuel and Cold Weather Payments
- Winter Fuel Payment: Up to £600 for pensioners.
- Cold Weather Payment: £25 per week when temperatures drop below freezing for seven consecutive days.
5. Energy Bill Relief
While energy prices have decreased slightly since 2024, they remain high. The Ofgem price cap continues to protect consumers. If you’re struggling, contact your supplier for hardship support or explore switching providers.
Budgeting and Advance Support
If the £299 Cost of Living Payment 2025 does not return, it’s important to manage your finances carefully:
Budgeting Advances (for Universal Credit claimants)
You may be eligible for an advance to cover:
- Replacement appliances
- Travel costs for new employment
- Moving expenses
These advances are repaid in small amounts from future benefit payments.
Financial Planning Tips
| Strategy | Description |
| Check entitlements | Use GOV.UK or benefits calculators to see what support you qualify for |
| Budget smarter | Use free tools like MoneyHelper |
| Contact charities | Organisations like Turn2us, StepChange, and Citizens Advice offer emergency grants |
| Track spending | Monitor your finances weekly using apps or spreadsheets |
Expert Opinions: Could the £299 Payment Return Later?
While there’s no confirmation now, experts suggest that if inflation rises again or public pressure grows before the election, the government might introduce a new one-off payment later in 2025. It may not be exactly £299, but similar financial relief could be provided under a different scheme.
FAQs
Will the £299 payment return in 2025?
There’s no confirmation as of April 2025. Future decisions may depend on inflation rates and election outcomes.
Who can access the Household Support Fund?
Anyone facing financial hardship, including low-income workers and self-employed individuals—not just benefit claimants.
What support is available for energy bills in 2025?
The Energy Price Cap is still in place. You may also qualify for Winter Fuel or Cold Weather Payments, or supplier-specific hardship schemes.
Is Universal Credit increasing this year?
Yes, Universal Credit and other benefits increased by 1.7% from April 2025.
How can I check what support I’m entitled to?
Visit GOV.UK or use a benefits calculator to explore all available assistance based on your situation.
Final Thought
While the £299 Cost of Living Payment 2025 remains unconfirmed, there are still plenty of support options for households dealing with high living costs. From council grants to benefit increases and energy support schemes, it’s important to stay informed and proactive.
If you’re struggling, check what help is available, apply early for local funds, and manage your budget carefully. Keep an eye on government announcements, especially as the general election approaches, as new financial support could still be introduced.
If you found this guide helpful, share it with others who might benefit. Stay connected to official updates and take control of your financial wellbeing in 2025.
