UK £250 Cost of Living Payment 2025: What You Need to Know This April?
In 2025, the financial pressure on UK households remains intense. With everyday expenses such as food, energy, and housing steadily increasing, many families are finding it harder to manage their budgets.
In response, the government has introduced and extended various support schemes designed to help those on low incomes, fixed benefits, or in financially vulnerable situations.
One of the most significant relief measures is the £250 Cost of Living Payment, which will be rolled out in April 2025.
Alongside this central government initiative, the Household Support Fund (HSF) has also been extended and continues to offer financial assistance through local councils, including a separate £200 grant for eligible residents.
This guide covers everything you need to know about the cost of living payment 2025, how to access other support, and what changes to expect this spring.
What Is the Cost of Living Payment 2025?
The cost of living payment 2025 is a one-off, tax-free payment issued by the Department for Work and Pensions (DWP).
The purpose of this payment is to support individuals and families who are struggling to meet essential living costs as inflation and the cost of household bills remain elevated.
Unlike the broader cost of living payments made during the crisis period between 2022 and 2024, which included multiple instalments totalling up to £900, the 2025 support focuses on more targeted assistance.
The £250 payment in April will be sent directly to qualifying individuals without the need to apply.
This payment is non-repayable, does not count towards income assessments for benefits, and is intended to provide some breathing room for individuals relying on financial support.
Expansion of Support: The Household Support Fund (HSF)
Alongside national government aid, local councils across England are distributing additional help through the Household Support Fund (HSF).
Introduced in 2021 in response to COVID-19 and extended several times since, the fund now runs until March 2026.
For 2025, many councils have chosen to allocate a portion of their HSF budget to offer a separate £200 payment to eligible residents.
Unlike the DWP’s £250 payment, which is automatic, the £200 HSF payment generally requires an application.
This support is being provided by councils to assist with the cost of essentials such as energy bills, food, clothing, and other household needs.
The way the HSF is administered can vary between councils, but the overarching aim is to support residents who are either on a low income or facing financial hardship.
Who Is Eligible for the April 2025 £250 Cost of Living Payment?
To receive the £250 payment, individuals must have been in receipt of a qualifying benefit during the government’s designated assessment period.
The DWP has not disclosed the exact qualifying dates at the time of writing, but eligibility will be based on benefits received in the weeks leading up to April 2025.
Qualifying benefits include:
- 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
In addition, recipients of disability benefits or those claiming Pension Credit may also qualify, provided their claims intersect with the DWP’s criteria.
It is essential to note that only those receiving income-based versions of these benefits will be eligible. People on contribution-based benefits without an income-related component may not qualify.
Who Can Apply for the £200 Household Support Fund Payment?
Separate from the DWP’s national support, the £200 payment available through the HSF is administered at the local level. Each council has some discretion over who qualifies and how the funds are distributed.
While eligibility varies between councils, common criteria include:
- Residency within the council area
- Low household income or receipt of means-tested benefits
- Limited savings (typically below £2,000)
- Status as a carer, disabled person, or pensioner facing financial difficulty
- No recent receipt of similar grants from the same council
For instance, Dudley Council offers the £200 grant to households earning below £40,000 (£30,000 for single-person households), provided their savings are under £2,000.
Similarly, the East Riding of Yorkshire includes residents receiving council tax support or Universal Credit.
Unlike the DWP payment, these local grants are not automatic and require you to apply directly via your council’s website.
When Will the £250 Cost of Living Payment Be Paid?
The DWP has confirmed that the £250 cost of living payment will begin being issued from 15 April 2025. The payment window extends until the end of April, and most eligible individuals should receive their money within that timeframe.
The payment will appear in your bank account under a reference including your National Insurance number, followed by “DWP COL” or “HMRC COL”, depending on which department administers your benefits.
As there are no bank holidays in April, payment dates are expected to follow the usual schedule, without delay.
How Can You Apply for the £200 Local Council Payment?
If you’re eligible for the £200 HSF payment, you will need to apply through your local council. While application processes vary slightly between areas, they generally involve the following:
- Visit your council’s website and navigate to the Household Support Fund or Cost of Living Support section.
- Review the eligibility criteria specific to your area.
- Gather required documents, such as:
- Proof of address
- Recent utility bills
- Bank statements
- Income or benefit letters
- Complete and submit the application either online or via a paper form, depending on the council’s system.
- Make sure to apply before the council’s deadline, as many are closing applications by 31 March 2025.
Councils such as Birmingham, Cheshire West, and North Tyneside have already launched or extended their schemes for spring 2025, offering direct payments or vouchers to support with energy and food costs.
What Can the £250 and £200 Payments Be Used For?
Both the £250 DWP payment and the £200 HSF grant are designed to be used flexibly. You can use the funds to cover:
- Utility bills (electricity, gas, water)
- Grocery expenses
- Clothing and footwear
- School uniforms and educational supplies
- Emergency home repairs or appliance replacement
Some councils issue supermarket vouchers, while others provide direct bank transfers or energy credit vouchers, depending on what best supports their residents’ needs.
What Were the Previous Cost of Living Payments?
In earlier rounds of support, the UK government issued a £900 cost of living payment split across three instalments during 2023–2024. These included:
- £301 between April and May 2023
- £300 between October and November 2023
- £299 between February 6 and February 22, 2024
These payments were targeted at over eight million low-income households. Since February 2024, there have been no additional national instalments announced—making the April 2025 payment the first in over a year.
Budgeting Loans and Extra Financial Support in 2025
Beyond the cost of living payments, individuals on Universal Credit may be eligible for budgeting advance loans, designed to cover emergency expenses.
These loans are interest-free and repaid through deductions from future Universal Credit payments.
The maximum you can borrow:
- £348 for single claimants
- £464 for couples
- £812 for those with children
Additionally, support is also available from local councils and charitable organisations.
The British Gas Energy Trust, for instance, offers help with energy debts, even if you’re not a British Gas customer. Citizens Advice and mortgage lenders are also offering enhanced support for those in financial hardship.
What If You Don’t Receive the £250 Payment?
If you believe you are eligible for the DWP payment but haven’t received it by early May 2025, you should:
- Double-check that you were receiving a qualifying benefit during the relevant assessment period.
- Look at your bank account for any DWP COL or HMRC COL references.
- Report the missing payment using the online tool on GOV.UK.
- Have your National Insurance number ready when making an enquiry.
You only need to report a missing payment once. The DWP will follow up directly.
Conclusion: Preparing for the 2025 Cost of Living Support
The £250 cost of living payment 2025, combined with local council grants of £200, will provide vital support for millions of UK households this spring.
While the DWP’s national support is issued automatically, it’s important to check your eligibility, understand how and when the payment is made, and keep track of any updates from the government.
The Household Support Fund remains a crucial source of extra help, particularly for those not receiving qualifying benefits.
With rising living costs showing no signs of easing, staying informed and proactive can make a real difference in managing your financial well-being.
Frequently Asked Questions (FAQs)
Can I receive both the £250 DWP payment and the £200 HSF grant?
Yes, provided you meet the separate eligibility criteria for each. Many households qualify for both types of support.
What is the deadline to apply for the £200 HSF payment?
Most councils have set 31 March 2025 as the deadline, though this may vary slightly. Always check your local council’s website.
Will these payments affect my Universal Credit or other benefits?
No, both payments are classed as non-taxable and do not affect the amount of benefits you receive.
Can people not on benefits apply for the HSF payment?
Yes, if you can show financial hardship, you may still qualify even if you’re not on benefits.
How do I report a missing cost of living payment?
Visit GOV.UK and use the reporting tool. Have your National Insurance number ready.
Are there other schemes for people struggling with energy bills?
Yes, check with your energy provider or Citizens Advice for grants and emergency support schemes.
What should I do if I need urgent help but don’t qualify for any payments?
Contact your local council, Citizens Advice, or charities like Turn2us. They may offer discretionary grants or food and energy vouchers.
