In early 2024, millions of UK households breathed a sigh of relief when the £299 Cost of Living Payment hit their bank accounts. For people like Sarah, a single mother from Manchester, this payment was a lifeline, helping cover soaring energy bills and grocery costs. But as April 2025 approaches, many are asking: Will the £299 payment return? With inflation still pinching wallets, the answer matters. Here’s what we know so far, backed by official sources, expert insights, and practical advice for navigating the cost-of-living crisis.
What Was the £299 Cost of Living Payment?
The £299 payment was the final installment of a £900 support package rolled out by the UK government between 2023 and 2024. It targeted low-income households on means-tested benefits like Universal Credit, Pension Credit, and Income Support. Administered by the Department for Work and Pensions (DWP) and HM Revenue & Customs (HMRC), it was automatically deposited between February 6 and 22, 2024, for most eligible recipients.
This payment followed two earlier installments: £301 in spring 2023 and £300 in autumn 2023. Together, they aimed to ease the burden of inflation, which hit a 40-year high of 11.1% in October 2022, according to the Office for National Statistics (ONS). For families like Sarah’s, these funds meant keeping the heating on during a brutal winter.
Is the £299 Payment Coming Back in April 2025?
As of May 2025, there’s no official confirmation from the DWP or the UK government that the £299 Cost of Living Payment will return in April 2025. The 2023-2024 payments were part of a temporary scheme, and the DWP has stated it’s “not planning to make any more Cost of Living Payments” after the February 2024 round.
However, the upcoming general election in 2025 could change things. Political parties often respond to public pressure, especially on economic issues. The Joseph Rowntree Foundation reports that 1 in 4 UK children live in households facing food insecurity, which could push policymakers to act if inflation spikes again. Keep an eye on the Spring Budget 2025 for updates.
Why the Uncertainty?
The government’s focus has shifted from one-off payments to long-term support. For example, Universal Credit and other benefits rose by 1.7% in April 2025, and the State Pension increased by 4.1% under the triple-lock policy. These adjustments aim to provide sustainable relief, but experts like the Institute for Fiscal Studies argue they may not fully offset rising costs for the poorest households.
What Support Is Available Instead?
Even without the £299 payment, several support options exist for 2025:
Household Support Fund (HSF)
Extended until March 2026, the HSF allows local councils to provide grants, food vouchers, and utility bill assistance. For instance, John, a pensioner from Leeds, received a £200 HSF grant to cover his gas bill. Eligibility varies by council, so check your local authority’s website.
Benefit and Pension Increases
From April 2025, key benefits like Universal Credit and Employment Support Allowance rose by 1.7%, while the full new State Pension reached £239.66 per week. These uplifts help, but they’re modest compared to the 6.7% benefit increase in 2024.
Winter Fuel and Cold Weather Payments
If you were born before September 25, 1957, you may qualify for a Winter Fuel Payment (£250-£600). Cold Weather Payments (£25 per week) kick in when temperatures drop below 0°C for seven consecutive days.
Table: Key Financial Support Options for 2025
| Support Type | Details | Eligibility | How to Apply |
|---|---|---|---|
| Household Support Fund | Grants, vouchers, or bill assistance (varies by council) | Low-income households, including non-benefit recipients | Contact local council |
| Universal Credit Increase | 1.7% rise from April 2025 | Means-tested benefit recipients | Automatic |
| State Pension Increase | 4.1% rise, full new pension at £239.66/week | Pensioners born before Sept 25, 1957 | Automatic |
| Winter Fuel Payment | £250-£600 based on circumstances | Born before Sept 25, 1957 | Automatic if eligible |
| Cold Weather Payment | £25/week during extreme cold | Benefit recipients in qualifying areas | Automatic |
Expert Insights: What’s Next for Cost-of-Living Support?
Dr. Emily Carter, an economist at the Resolution Foundation, notes that “one-off payments like the £299 installment are politically appealing but don’t address structural poverty.” She advocates for reforms like expanding affordable housing and boosting Universal Credit rates. Meanwhile, anti-poverty campaigners are urging the government to reinstate lump-sum payments if energy prices surge again, as predicted by Cornwall Insight for late 2025.
Practical Tips for Households
While waiting for policy updates, take these steps to stretch your budget:
- Check Benefit Entitlement: Use the GOV.UK benefits calculator to see if you’re missing out on support like Pension Credit or Council Tax Reduction.
- Apply for HSF Early: Funds are limited, so contact your council ASAP.
- Save on Energy: Compare suppliers or apply for hardship funds through your provider.
- Budget Smart: Tools like MoneyHelper’s Budget Planner can help track expenses.
Sarah, for example, used a benefits calculator and discovered she qualified for Pension Credit, boosting her income by £70 a week. Small steps can make a big difference.
FAQs About the £299 Cost of Living Payment
Will the £299 payment return in April 2025?
No official plans exist as of May 2025, but monitor government announcements, especially around the 2025 general election.
Who was eligible for the 2024 £299 payment?
Recipients of means-tested benefits like Universal Credit, Pension Credit, or Income Support during November 13 to December 12, 2023, qualified.
What if I didn’t receive the 2024 payment?
Check your bank statement for “DWP COL” or “HMRC COLS.” If missing, report it via GOV.UK.
Are there other cost-of-living payments in 2025?
No new lump-sum payments are confirmed, but the Household Support Fund and benefit increases are active.
Final Thoughts
The £299 Cost of Living Payment was a vital support for millions, but its return in April 2025 remains uncertain. While the government prioritizes benefit uplifts and targeted aid like the Household Support Fund, households must stay proactive. Check your eligibility, explore local grants, and keep an eye on election-driven policy changes. For now, resources are available—you just need to know where to look.