In 2024, millions of UK households received a much-needed financial boost with the £299 Cost of Living Payment. This payment was part of a £900 support package designed to help families manage soaring bills, inflation, and everyday living costs. As we approach April 2025, many are asking: Will the government issue another round of payments to assist with rising living costs?
Let’s take a detailed look at what we know so far, the ongoing support available, and how you can prepare if the government doesn’t announce another payment.
Summary Table Of UK Cost of Living Payment
Here’s a quick summary of what you can expect regarding cost-of-living support in 2025:
| Support | Details | Official Website |
|---|---|---|
| £299 Cost of Living Payment | No confirmation for April 2025 | www.gov.uk |
| Household Support Fund | Available until March 2026. Covers food, utility, and emergency aid | www.gov.uk or local council websites |
| Benefit & Pension Increases | Universal Credit +1.7%, State Pension +4.1% (triple lock) | www.gov.uk |
| Winter Fuel Payments | For those born before 25 September 1957 | www.gov.uk |
| Cold Weather Payments | £25 per week when temperatures drop below 0°C for seven days | www.gov.uk |
What Was the £299 Cost of Living Payment?
The £299 Cost of Living Payment was the third and final installment of the £900 support package distributed throughout 2023 and 2024. The full package was designed to help people who were receiving means-tested benefits. Here’s a breakdown of the payments:
| Installment | Amount | Date Issued |
|---|---|---|
| 1st | £301 | Spring 2023 |
| 2nd | £300 | Autumn 2023 |
| 3rd | £299 | February 2024 |
Eligibility for the £299 Payment
To be eligible for the £299 Cost of Living Payment, you needed to be receiving one of the following means-tested benefits:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
Key features of the payment include:
- Non-taxable
- No application required
- Does not affect existing benefits
Is the £299 Payment Coming Back in April 2025?
As of now, the UK government has not confirmed if another £299 payment will be issued in April 2025. However, there are several developments to watch for in the coming months:
1. The 2025 General Election Could Shape Policy
The upcoming general election in 2025 could have a significant impact on whether the government decides to provide additional support. Political parties may include cost-of-living relief in their manifestos to appeal to voters. Economic shifts, such as rising inflation or energy price increases, might also influence the government’s decision.
2. Household Support Fund Extended
Good news: even if the £299 payment does not return, the Household Support Fund (HSF) has been extended until March 2026. This fund is available to support individuals and families facing financial hardship, regardless of whether they receive benefits.
What can the Household Support Fund cover?
- Food vouchers
- Utility bill support
- Emergency cash for urgent needs
You don’t need to be on benefits to qualify. Low-income workers and individuals facing unexpected expenses can also apply.
To apply, contact your local council’s welfare department or visit their website for specific details.
3. Increase in Benefits and Pensions
From April 2025, the government has already planned increases to some core benefits, which may help mitigate the cost of living pressures:
| Benefit Type | Expected Increase |
|---|---|
| Universal Credit | +1.7% |
| Other means-tested benefits | +1.7% |
| State Pension | +4.1% (triple lock) |
These increases are designed to help households keep pace with rising living costs.
Alternative Support Options in April 2025
Even if the £299 payment doesn’t return in April 2025, several other support options will still be available. Here’s a breakdown of the most helpful schemes:
Local Council Welfare Assistance
Many local councils run their own support programs. Depending on where you live, you may be able to access:
- Supermarket vouchers for essential food purchases
- Heating and fuel grants to help with winter energy costs
- Help with school uniforms or essential appliances
Winter Fuel Payments
If you were born before 25 September 1957, you may qualify for a Winter Fuel Payment worth between £250 and £600, depending on your situation.
Cold Weather Payments
If the temperature drops below 0°C for seven consecutive days, you may qualify for a Cold Weather Payment worth £25 per week if you’re on certain benefits.
Energy Bill Relief
The Energy Price Cap set by Ofgem will continue to provide some protection against rising energy prices. While bills remain higher than pre-pandemic levels, they are expected to drop slightly in April 2025.
To save on energy bills, consider:
- Switching energy providers to get better rates
- Applying for hardship funds offered by your supplier
Budgeting Advances for Universal Credit Claimants
If you are on Universal Credit, you may be eligible for a Budgeting Advance to cover large or emergency expenses such as:
- Appliance repairs
- Travel for work
- Moving costs
This advance is repaid in small deductions from future Universal Credit payments.
How to Prepare If the £299 Payment Doesn’t Return
If the government decides not to provide another £299 payment, there are a few steps you can take to ensure your finances remain stable:
Check Your Benefit Eligibility
Many people are unaware that they may qualify for additional benefits. Use a government-approved benefits calculator to check what support you might be entitled to.
Explore Charitable Grants and Emergency Help
Organizations like Citizens Advice, Turn2us, and StepChange offer advice, budgeting help, and even one-off emergency grants to those in financial difficulty.
Use Budgeting Tools
Managing your finances carefully is key to making your money go further. Try using the MoneyHelper Budget Planner or other apps that help track your spending. Cutting back on subscriptions or unused services can free up funds for essential needs.
What Are Experts Saying?
While the government may move away from universal payments like the £299 one, rising housing costs, council tax hikes, and stagnant wages could prompt them to reconsider. If inflation rises sharply or economic pressures increase, there may still be a new cost-of-living payment introduced, especially as the 2025 general election approaches.
Frequently Asked Questions (FAQs)
1. Is the £299 payment confirmed for April 2025?
No, the government has not confirmed any plans to issue a £299 payment in April 2025. However, other forms of support are still available.
2. Who can apply for the Household Support Fund?
Anyone facing financial hardship can apply, including benefit claimants, low-income workers, and individuals with unexpected expenses. Contact your local council for details.
3. Will my pension go up in April 2025?
Yes, the State Pension is expected to rise by 4.1% due to the government’s triple lock commitment.
4. Can I get help with my energy bills in 2025?
Yes, you may qualify for Cold Weather Payments, Winter Fuel Payments, or hardship grants through your energy supplier.
If you need further information, it’s always best to visit the official government websites or contact your local council for tailored advice.
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