DWP Administering New Cost of Living Payments in 2025

The Department for Work and Pensions (DWP) is set to administer new Cost of Living payments in 2025 through the extension of the Household Support Fund (HSF).

The UK government announced the extension of the HSF for six months.

• Household Support Fund: Some local councils are providing Cost of Living payments to households identified as in need, funded by the DWP’s Household Support Fund. If in an emergency financial situation, individuals may be eligible for a payment from the HSF. Pensioners identified as being on a low income will receive assistance to help with the cost of bills, food, and other essentials. The government-funded HSF will also fund supermarket vouchers for families living in areas who receive Housing Benefit or Council Tax Support with children up to the age of 18. The deadline to apply for a HSF payment is March 31, 2025.

• Cost of Living Payments Evaluation: The Cost of Living Payments (CoLPs) were introduced to support vulnerable households impacted by the rise in the cost of living and were implemented until early 2024. There were three types of CoLPs: Means-Tested Benefit Cost of Living Payment (MTBCoLP), Disability Cost of Living Payment (DCoLP), and Pensioner Cost of Living Payment (PCoLP).
• • The MTBCoLP was for those receiving means-tested benefits like Universal Credit and included payments made in April/May 2023, October/November 2023, and February 2024.
  • The DCoLP was a single payment paid in April 2023 to those receiving a disability benefit.
  • The PCoLP was for pensioner households who received a Winter Fuel Payment (WFP) and was paid as a top-up to the WFP in November/December 2023.

Eligibility: 

You may be eligible to get payments to help with the cost of living if you are getting certain benefits or tax credits. You do not need to do anything to apply.

If you are eligible, you will be paid automatically in the same way you receive your normal benefit payments or tax credits.

These additional cost of living payments will be made separately from your normal payments; they are not taxable and will not affect any of the benefits or tax credits you get.

Entering February 2025, many are continuing to look for ways to keep household costs low as new expenses arise.

Household bills, groceries, mortgages, and rents have all hit record highs over the past year, as the country navigates the ongoing cost of living crisis.

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