The Department for Work and Pensions (DWP) has officially confirmed the conclusion of its £900 cost-of-living support scheme, with the final payment completed in May 2025.
Introduced to assist vulnerable households amid rising inflation and economic pressures, the multi-phase support package was a key component of the UK government’s response to the ongoing cost-of-living crisis.
Overview of the £900 Cost-of-Living Payment Scheme
The £900 cost-of-living payment was part of a broader initiative targeting low-income families and individuals receiving means-tested benefits.
The scheme aimed to reduce financial hardship caused by surging energy prices, increased food costs, and general inflation.
This support was divided into three payments spread across the 2023–2024 financial year:
| Payment Stage | Amount | Issued Date | Eligibility Based On |
|---|---|---|---|
| First Payment | £301 | April – May 2023 | Benefits received by Feb 2023 |
| Second Payment | £300 | October – November 2023 | Benefits received by Aug 2023 |
| Final Payment | £299 | February – March 2024 | Benefits received by Dec 2023 |
Eligibility Criteria for the £900 Support
To be eligible for the total £900 payout, individuals needed to be receiving one or more of the following income-based benefits during the specified qualifying periods:
- Universal Credit
- Pension Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
Applicants solely on contribution-based benefits (e.g., New Style JSA or ESA) were excluded unless they also qualified under an income-based program.
Completion of the Final Payment in 2025
The third and final payment of £299 was distributed between February and March 2024.
However, DWP extended support into early 2025 to accommodate any delayed processing and ensure that households with administrative or technical delays were included. The process has now officially ended as of May 2025.
The Current State of Economic Support
While the £900 support scheme has concluded, the factors that necessitated such payments continue to impact millions of UK households.
With inflation still higher than pre-pandemic averages and only slight reductions in energy costs, there is growing concern over the long-term financial resilience of low-income families.
What Might Replace the £900 Payment Program?
Moving forward, the government has indicated a shift from universal one-off payments to more targeted forms of support, including:
- Adjusting benefits in line with inflation annually.
- Reforming the Warm Home Discount to reach more eligible households.
- Increasing local council funding for emergency welfare assistance.
- Enhancing work incentives through improved tax credit schemes.
This approach reflects a growing recognition that sustained support structures may offer more stability than one-time interventions.
Advocacy Group Responses
Charities and advocacy organizations such as the Joseph Rowntree Foundation and Citizens Advice have acknowledged the positive impact of the £900 scheme but stress the need for long-term systemic reform.
Their calls highlight the importance of addressing poverty at its root rather than relying on intermittent cash injections.
These groups advocate for:
- Comprehensive welfare reform.
- Better access to affordable housing.
- Improved wage policies.
- Increased investment in public services.
The DWP’s £900 cost-of-living payment program served as vital relief during a turbulent economic period. With the final instalment now complete as of May 2025, attention turns to what future measures will be implemented to support financially vulnerable households.
While blanket payments may no longer be on the agenda, the focus on targeted, sustained support signals a policy shift aimed at long-term financial security.
FAQs
What was the total amount of the DWP cost-of-living payments?
Eligible individuals received a total of £900, distributed in three instalments across 2023 and 2024.
Who qualified for the £900 support?
Claimants of income-based benefits such as Universal Credit, Pension Credit, and Tax Credits during specific qualifying periods were eligible.
Are more cost-of-living payments expected in 2025?
There are no new £900 payments scheduled. However, targeted support measures are expected to be introduced in the coming months.