The rising cost of essentials has prompted renewed government support for UK households. With the next cost of living payment scheduled for 2025, many are eager to know when and how assistance will be provided.
Backed by the Department for Work and Pensions (DWP), these payments offer vital relief for those facing financial hardship. This article explores the expected payment timelines, eligibility criteria, and key updates regarding the Household Support Fund and other government-backed schemes.
What Is The Cost Of Living Payment And Who Provides It?
The Cost of Living Payment is a targeted financial relief provided by the UK government to assist households struggling with increased daily expenses due to inflation, rising energy prices, and economic pressures.
This scheme was introduced in response to the ongoing cost of living crisis affecting millions across the country.
The responsibility for distributing this support lies with the Department for Work and Pensions (DWP). These payments are often made directly into the bank accounts of individuals who are already receiving certain means-tested benefits.
Alongside these central payments, local authorities across the UK manage additional support through the Household Support Fund (HSF).
The main aim of this scheme is to provide temporary but vital financial assistance to those most in need, such as:
- People receiving Universal Credit, Pension Credit, or Income-Based Jobseeker’s Allowance
- Families with children on free school meals
- Pensioners and disabled individuals on qualifying benefits
Local councils may also implement specific grant programmes funded by the HSF, such as hardship grants, which are designed to provide one-off financial relief for essential costs like food, heating, and other utilities.
When Will The Next Cost Of Living Payment Be Made In 2025?
The next cost of living payment is set to reopen for applications in June 2025. This timeline follows the official end of Round 6 of the Household Support Fund, which closed on 31 March 2025. As of 1 April 2025, Round 7 has commenced, meaning new funding has been distributed to local councils for continued support.
For example, Birmingham City Council has confirmed that its Hardship Grant Community Fund Scheme, previously active under Round 6, will accept new enquiries starting June 2025. Households that have not received a grant within the past 12 months will become eligible to apply at that time.
This scheme is being managed in collaboration with Birmingham Voluntary Service Council (BVSC). Applicants are encouraged to monitor the council’s website or BVSC channels for announcements once the enquiry window officially reopens.
Who Is Eligible For The Cost Of Living Payment In 2025?
Eligibility is largely determined by a combination of benefit entitlement, income status, and the time elapsed since the last grant received. In most councils, including Birmingham, eligibility conditions typically include:
- The household must not have received a hardship grant in the past 12 months
- At least one household member must be on a means-tested benefit
- Applicants must demonstrate a genuine financial need or economic vulnerability
Local councils are responsible for verifying eligibility based on these guidelines. Those who meet the criteria are then added to a waiting list once their enquiry has been accepted.
It’s worth noting that DWP-distributed payments, such as the ones automatically provided to Universal Credit recipients, follow a different set of eligibility rules based on active benefit claims during a specific qualifying window.
How Does The Household Support Fund Work In 2025?
The Household Support Fund (HSF) is a UK government-backed initiative that gives local councils discretionary power to provide financial support to residents who are struggling with essential living costs. The fund is structured in phases or rounds, each with a distinct allocation period and budget.
In 2025, the HSF entered Round 7 as of 1 April, following the conclusion of Round 6. Local authorities receive a portion of the total government allocation and use it to develop programmes tailored to the needs of their local communities.
Under this scheme, councils may offer:
- One-off grants for food, clothing, heating, and hygiene products
- Fuel vouchers or direct energy bill support
- Cash payments into bank accounts or supermarket e-vouchers
The implementation and distribution vary between councils. In some areas, like Birmingham, the fund is administered through partnerships with organisations such as BVSC, ensuring that support reaches those in the most need efficiently.
What Can Households Expect After Submitting Their Application?
Once a resident submits an enquiry or application to a local authority’s Hardship Fund or Household Support Scheme, the following process usually unfolds:
- Confirmation Email: Applicants receive a confirmation acknowledging their enquiry has been received.
- Waiting List Placement: Those who meet initial criteria are added to a waiting list for formal review.
- Follow-Up Contact: Within approximately 6 to 8 weeks, eligible households will be contacted by a representative of the HSF team to complete a full application.
During this process, applicants may be asked to provide documents such as:
- Proof of benefits or income
- Identification and address confirmation
- Recent bills showing financial hardship
Local councils advise that applicants ensure they meet the 12-month non-receipt rule before submitting a new enquiry.
How Were Cost Of Living Payments Distributed In Previous Years?
To understand how future cost of living payments might be structured, it helps to look at the pattern from previous years. Between 2023 and early 2024, three separate payments were made to eligible households across the UK. These were:
| Payment Amount | Payment Dates | Eligibility Period |
| £301 | 25 April – 17 May 2023 | 26 January – 25 February 2023 |
| £300 | 31 October – 19 November 2023 | 18 August – 17 September 2023 |
| £299 | 6 February – 22 February 2024 | 13 November – 12 December 2023 |
Each payment was automatically processed for those who were in receipt of eligible benefits during the relevant window. Unlike local council grants, there was no need to apply for these DWP-issued payments.
The DWP is expected to maintain a similar process in 2025, although confirmation of exact dates and payment amounts is pending.
What Should You Do If You Didn’t Receive The Last Payment?
If you didn’t receive a payment despite believing you were eligible, there are several steps you can take:
- Verify your benefit status during the qualifying period. Even a temporary suspension of payments may disqualify you.
- Review correspondence from the DWP or your local authority to see if any action was required on your part.
- Contact your local council or DWP to confirm your eligibility and seek clarification.
- For council-issued support, determine whether the 12-month reapplication rule affects your eligibility for the upcoming June 2025 round.
Keeping your information up to date with both the DWP and your local council can help ensure future payments are not missed.
What Other Financial Support Is Available For UK Households In 2025?
While the Cost of Living Payment remains a key form of relief for millions of UK residents, it’s far from the only support available.
In 2025, the UK government, local councils, and third-party organisations continue to offer a wide range of financial assistance programmes aimed at helping households manage essential living costs.
These schemes are especially important for people facing ongoing hardship due to inflation, energy price surges, housing expenses, or health-related income disruption.
The support mechanisms fall into several categories including energy relief, food security, housing assistance, and targeted seasonal aid.
1. Winter Fuel Payment
The Winter Fuel Payment is a tax-free annual payment made to people over the State Pension age to help cover heating bills during the colder months. The amount ranges from £250 to £600, depending on age and personal circumstances.
Payments are usually automatic for those receiving a State Pension or other qualifying benefits. In 2025, as energy costs remain elevated, the government has confirmed the continuation of this support for eligible pensioners.
2. Warm Home Discount Scheme
The Warm Home Discount provides a one-off discount of £150 on electricity bills for low-income households during the winter. This is typically applied directly by energy suppliers to eligible customers.
Eligibility in 2025 continues to be based on whether a person receives certain benefits like Guarantee Credit element of Pension Credit or falls under the broader group with high energy costs and low income, as determined by government data.
3. Energy Bills Support Through Local Authorities
Apart from national schemes, many councils provide local energy bill support. This may include:
- Fuel vouchers for prepayment meter customers
- One-off cash payments or credits on energy accounts
- Partnerships with local energy advice services to support home efficiency improvements
Local funding is often distributed through the Household Support Fund, and availability varies by region. Residents should consult their local council websites for up-to-date information.
4. Council Tax Reduction
The Council Tax Reduction Scheme (sometimes called Council Tax Support) helps people on a low income or benefits reduce the amount they need to pay on their council tax bill. The level of support depends on:
- Income and savings
- Household composition
- Local council policy
In 2025, most councils have committed to maintaining or expanding this support, especially for pensioners, single parents, and people with disabilities.
5. Free School Meals and Holiday Food Vouchers
Families with children who qualify for free school meals can also receive holiday food vouchers during half-term, Easter, summer, and winter breaks. These are typically funded through the Household Support Fund and administered by schools or local education departments.
Vouchers can be used at major supermarkets and are intended to ensure children have access to nutritious meals outside of term time.
6. Discretionary Housing Payments (DHP)
If you’re already receiving Housing Benefit or the housing element of Universal Credit, but are still struggling with rent costs, you may qualify for a Discretionary Housing Payment.
DHPs are provided by local councils and are meant to:
- Cover shortfalls in rent
- Assist with rent deposits or moving costs
- Prevent homelessness in vulnerable cases
Applications are made directly through the local council, and approval depends on financial circumstances and housing need.
7. Budgeting Loans and Budgeting Advances
The DWP offers Budgeting Loans (for those on legacy benefits) and Budgeting Advances (for Universal Credit claimants). These are interest-free loans to help with essential one-off expenses such as:
- Buying white goods
- Home maintenance
- Travel costs for job interviews
- Funeral expenses
The amount you can borrow depends on your circumstances and repayment ability. While not a grant, they offer a manageable way to spread necessary costs.
8. Local Welfare Assistance Schemes
Many councils offer Local Welfare Assistance Schemes, sometimes known as crisis funds or community support grants. These are designed to support people facing immediate hardship due to unexpected events such as job loss, illness, or domestic emergencies.
Support can be given in the form of:
- Supermarket or food bank vouchers
- Clothing and furniture packages
- Emergency cash payments
Each council sets its own eligibility and application criteria. These schemes can be a lifeline during critical moments and are often under-utilised due to lack of awareness.
9. Support for People With Disabilities
Households with disabled members may be entitled to additional support, including:
- Personal Independence Payment (PIP) or Disability Living Allowance (DLA)
- Blue Badge travel concessions
- Priority for home heating grants or insulation schemes
- Local authority-funded adaptations to improve home accessibility
In 2025, the government continues to prioritise funding for schemes that improve the independence and well-being of disabled individuals, especially through social care partnerships.
10. Debt Advice and Financial Counselling
Though not direct financial support, free debt advice services can help people better manage their income and access support they’re eligible for. Trusted organisations include:
- StepChange Debt Charity
- Citizens Advice
- National Debtline
These services offer confidential guidance on budgeting, repaying debts, and negotiating with creditors. Some councils also provide in-house financial support teams as part of broader welfare services.
How Can You Stay Informed About DWP And HSF Updates?
To avoid missing any critical announcements or application windows, it’s important to stay informed through official and trusted channels. Here’s how:
- Bookmark GOV.UK pages related to cost of living support and DWP benefit updates.
- Sign up for email alerts from your local council or check their news and updates page regularly.
- Follow local councils on social media, where they often share grant opening dates and reminders.
- Consult trusted organisations like Citizens Advice Bureau and MoneyHelper for updates and help with eligibility.
- Join local community support groups where others may share real-time information on benefit updates and grants.
Being proactive ensures you remain eligible and well-prepared when application periods open, particularly during the mid-year and winter support rounds.
Conclusion
The upcoming cost of living payment in 2025 offers much-needed support for households navigating financial pressures. As the Household Support Fund enters its seventh round, eligible residents must stay informed about application dates and criteria.
Whether receiving benefits or facing hardship, local authorities are continuing to assist those most in need. By understanding your entitlements and following updates from your council or the DWP, you can ensure you don’t miss out on essential financial help this year.
FAQs About The Next Cost Of Living Payment In 2025
What Is The Household Support Fund Round 7 And When Did It Start?
Round 7 of the Household Support Fund started on 1 April 2025, providing new funding to local authorities for cost of living relief.
Can I Apply Again If I Received A Payment Last Year?
You can only apply if it’s been 12 months since your last grant. Otherwise, you’ll need to wait until you’re eligible again.
How Do I Know If I’m On The Waiting List?
If you received an email confirmation from your council or the HSF team, you are on the waiting list for the next round of payments.
Will The 2025 Payments Be Automatic Like In Previous Years?
Some payments, especially through DWP, are automatic if you meet eligibility criteria. However, local council grants may require a formal application.
Do I Need To Contact DWP Directly To Claim The Payment?
No. DWP payments are automatic if you’re receiving qualifying benefits. Council grants, however, usually require separate applications.
What Documents Will I Need To Apply For The June 2025 Grant?
You may need proof of income, benefit statements, identification, and recent household bills. Always check your local council’s specific requirements.
Can I Receive Cost Of Living Support If I’m On A Zero-Hour Contract?
Yes, if your income level meets the local eligibility criteria or you receive benefits, you may qualify for the grants or support schemes.
