Many households are already asking the same question — cost of living payment 2025 when will it be paid universal credit? With living costs still high across the UK, millions of people who rely on Universal Credit, Pension Credit, and Tax Credits are waiting to find out when they’ll receive their next payment.
The Cost of Living Payment 2025 is designed to help low-income families and individuals manage rising expenses such as energy, food, and housing. It continues to be a crucial part of the government’s financial support plan for those most affected by inflation.
In this post, we’ll cover everything you need to know — including expected payment dates, eligibility rules, amounts, and other available support for 2025.
What Is the Cost of Living Payment 2025 and Who Will Receive It?
How does the 2025 Cost of Living Payment help UK households?
The Cost of Living Payment is a government support initiative created to help people on low incomes cope with everyday expenses like energy, food, and housing. It started in 2022 as a temporary measure but has continued annually because the cost of living crisis hasn’t fully eased.
By 2025, it’s estimated that around eight million UK households will receive at least one payment through Universal Credit or another benefit. The payment aims to protect vulnerable people from inflation and energy price fluctuations — two factors that continue to hit budgets hard.
Who is eligible to receive the Cost of Living Payment 2025?
Eligibility depends on the type of benefit you receive. If you get Universal Credit, Income Support, Pension Credit, income-based JSA or ESA, or Tax Credits, you’re likely to qualify.
The key requirement is that you must have been entitled to one of these benefits during a specific qualifying period (which the DWP will confirm closer to the time).
How is it different from previous cost of living payments?
Earlier payments in 2023 and 2024 were split into three smaller instalments, totalling around £900. For 2025, however, the government is expected to simplify the process with two main instalments, making the schedule easier to follow.
The exact payment structure might change depending on inflation and budget decisions in the 2025 Spring Statement.
When Will the Cost of Living Payment 2025 Be Paid for Universal Credit?
What are the expected Cost of Living Payment dates in 2025?
Based on current DWP guidance, here’s the anticipated schedule for 2025:
| Payment Type | Expected Payment Window | Eligible Groups |
|---|---|---|
| First Payment | April 2025 | Universal Credit, Pension Credit, and income-based benefit claimants |
| Second Payment | October 2025 | Same eligible groups automatically paid by DWP or HMRC |
Payments are usually made automatically over a few weeks to avoid overloading DWP systems.
Will there be multiple instalments for Universal Credit claimants?
Yes, most likely two instalments — one in spring and another in autumn 2025. This helps households spread the support throughout the year, especially before major spending periods like summer holidays and winter heating months.
How will I know when my payment has been sent?
You’ll receive the money directly into your bank, building society, or credit union account. The payment reference will typically read something like “DWP COLP” (for DWP benefits) or “HMRC COLS” (for Tax Credits).
What should I do if I haven’t received the 2025 payment yet?
If your payment doesn’t arrive within the expected window, first check:
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That you were eligible during the qualifying period.
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That your bank details are up to date in your Universal Credit account.
If everything looks correct, contact DWP via your online UC journal or call their helpline. HMRC handles payments for Tax Credit claimants, so reach out to them if that applies to you.
How Much Will the 2025 Cost of Living Payment Be for Universal Credit?
What amount can Universal Credit claimants expect in 2025?
The government hasn’t officially confirmed the figures yet, but most experts predict that each payment will be between £300 and £400, totalling around £600 to £800 for the year.
That figure aligns with 2024’s total support, reflecting ongoing challenges in household affordability.
Could the payment amount change due to inflation or government policy?
Absolutely. If inflation rises or the economy worsens, the government might adjust the amount. Conversely, if living costs drop significantly, payments might be smaller — though that’s less likely in the current climate.
Financial expert Martin Lewis notes:
“Cost of living payments remain one of the most direct ways to help struggling families — so while the amounts may change, the need for them is still very real.”
How does the payment compare with 2023 and 2024 support schemes?
Here’s a quick comparison:
| Year | Total Support | No. of Payments | Average Payment Per Instalment |
|---|---|---|---|
| 2023 | £900 | 3 | £300 |
| 2024 | £900 | 3 | £300 |
| 2025 (Expected) | £600–£800 | 2 | £300–£400 |
How Do You Know If You Qualify for the 2025 Cost of Living Payment?
What are the DWP qualifying periods for Universal Credit payments?
Every year, the Department for Work and Pensions (DWP) sets a specific “qualifying period” — a short window of time during which your Universal Credit claim must be active to receive the Cost of Living Payment.
For example, in 2024, the qualifying period for one payment was roughly three weeks long. To get the 2025 payment, you’ll need to have either:
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Received a Universal Credit payment for at least one day during that period, or
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Had an assessment period that ended within the DWP’s chosen dates.
This means even if your payment didn’t actually arrive during that window, as long as your claim covered it, you should still qualify.
The DWP will announce the exact qualifying dates closer to spring 2025 — so keep an eye on updates on www.gov.uk or in your Universal Credit online journal.
Do joint Universal Credit claims get one or two payments?
Couples who make a joint Universal Credit claim will receive one payment per household, not per person. The DWP automatically sends the full amount to the main account holder on your claim.
It doesn’t matter who earns more or who pays the bills — the payment is a flat rate for the whole household. Make sure you and your partner are aware of when it’s due and plan together how you’ll use it for shared expenses.
Can working Universal Credit claimants still get the Cost of Living Payment?
Yes — being employed doesn’t automatically disqualify you. You can still receive the Cost of Living Payment 2025 as long as you remain entitled to Universal Credit during the qualifying period.
Many people forget that Universal Credit isn’t just for the unemployed. It’s also designed for those in work but earning a low income. So if your wages are modest and you still receive UC top-ups, you’re likely eligible.
How Will the Cost of Living Payment Be Paid?
How will Universal Credit claimants receive the Cost of Living Payment?
You’ll receive the Cost of Living Payment directly into your bank, building society, or credit union account — just like your usual benefit. The DWP or HMRC will send it automatically to the same account linked to your Universal Credit or Tax Credits claim.
You don’t need to apply, call, or fill out a form. Once you’re eligible and within the qualifying period, the money will simply appear in your account during the scheduled payment window.
What will the payment reference look like on your bank statement?
When the payment lands in your account, it’s usually easy to recognise. The reference will typically show as:
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“DWP COLP” — for those paid through Universal Credit, Pension Credit, or income-based benefits.
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“HMRC COLS” — for those receiving payments via Tax Credits.
This label helps you confirm that the payment is genuine and not a duplicate or unrelated transaction.
What to do if your payment is missing or delayed?
If you haven’t received your payment after the announced window has closed, first double-check:
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That you met the qualifying dates; and
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That your bank details in your Universal Credit account are correct.
Payments are made in batches, so yours might simply be a few days later than others. If it’s still missing after the payment window, contact the DWP through your Universal Credit journal or call the helpline.
If you claim Tax Credits, reach out to HMRC instead.
Most missing payments are resolved quickly once the department verifies eligibility.
What If You’re Not on Universal Credit — Can You Still Get Help?
Yes, several other UK government support schemes will continue in 2025:
1. Warm Home Discount – £150 off electricity bills for eligible low-income households.
2. Winter Fuel Payment – £200–£300 for pensioners born before 1959.
3. Household Support Fund (HSF) – Extended into 2025, distributed through local councils to help with essentials like food, energy, and water bills.
Will the Cost of Living Payment Continue Beyond 2025?
Is the UK government planning more support beyond 2025?
As of late 2025, the UK government hasn’t officially announced whether the Cost of Living Payment will continue into 2026. The decision will likely depend on several key factors:
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Inflation rates and cost of essentials – if food and energy prices remain high, extra support may still be needed.
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Public finances – future payments will depend on the overall budget and government spending limits.
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Economic recovery – if wages and benefits catch up with inflation, support might be scaled back.
In short, the government will review the situation in early 2026 before confirming whether to extend or replace the Cost of Living Payment with another type of financial assistance.
How Can You Prepare Financially While Waiting for the 2025 Payment?
Here are some smart steps to manage until your next DWP payment:
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Check eligibility regularly on the official gov.uk website.
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Budget monthly using free tools from MoneyHelper UK.
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Contact your local council for additional grants or food vouchers.
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Use energy-saving schemes to cut utility bills.
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Avoid loan sharks or high-interest credit — seek advice from StepChange or Citizens Advice.
Conclusion: When Will the Cost of Living Payment 2025 Be Paid for Universal Credit Claimants?
To sum it up — the Cost of Living Payment 2025 for Universal Credit claimants is expected to be paid in April 2025 and again in October 2025, directly into your usual benefit account.
While official amounts and qualifying periods are yet to be confirmed, DWP guidance and past trends suggest the payment will remain automatic, tax-free, and targeted at low-income households.
Keep an eye on official announcements at www.gov.uk for final confirmation.
FAQs: Cost of Living Payment 2025
1. How do I check if I’m eligible for the 2025 Cost of Living Payment?
You can check eligibility on gov.uk under the “Cost of Living Payment” section. You must have received a qualifying benefit like Universal Credit during the DWP’s set qualifying period.
2. Will Pension Credit claimants get the Cost of Living Payment 2025?
Yes, those receiving Pension Credit will be eligible if they qualify during the set period.
3. Do you need to apply for the Cost of Living Payment 2025?
No, payments are automatic — there’s no need to apply or call DWP.
4. What happens if I didn’t get my payment?
If you were eligible but haven’t received it, contact DWP or HMRC depending on which benefit you claim.
5. Can you get the Cost of Living Payment if you work?
Yes, as long as you receive Universal Credit or another qualifying benefit — even if you’re working part-time or full-time.
