As the cost of food, energy, and housing continues to rise across the UK, millions of households are eagerly awaiting updates on financial assistance.
One of the most talked-about relief packages—the £650 Cost of Living Payment—provided a significant lifeline in the past.
Now in May 2025, the big question remains: Is this payment making a comeback? Here’s everything you need to know about new government support, eligibility, expected payment dates, and how these measures compare to the previous £650 package.
The Original £650 Payment – A Quick Recap
In 2022, the UK government rolled out a £650 Cost of Living Payment to support low-income households during an inflation crisis. The payment was made in two instalments—£326 and £324—and was automatically distributed to eligible individuals receiving means-tested benefits.
It was one of the largest one-time financial relief programs at the time and sparked ongoing discussions about future assistance models.
2025 Update: What’s Happening Now?
While the exact £650 payment is not returning, the government has introduced a new series of Cost of Living Payments in 2025 with similar financial impact.
These payments will again target the most vulnerable groups, including people on means-tested benefits, disability payments, and state pensions.
Breakdown of 2025 Cost of Living Support
Here is a table showing how the new support payments in 2025 are structured:
| Payment Type | Amount | Eligibility | Payment Timeline |
|---|---|---|---|
| Means-Tested Payment #1 | £301 | Universal Credit, Income Support, Pension Credit, Tax Credits | Spring 2025 |
| Means-Tested Payment #2 | £300 | Same as above | Summer 2025 |
| Means-Tested Payment #3 | £299 | Same as above | Autumn 2025 |
| Disability Support Payment | £150 | PIP, DLA, Attendance Allowance, others | Mid-2025 |
| Pensioner Winter Bonus | £150–£300 | For those receiving the Winter Fuel Payment | Winter 2025–2026 |
Altogether, these payments can total up to £900 or more for households receiving multiple eligible benefits, surpassing the original £650 amount from 2022.
Eligibility Criteria Explained
To qualify for these payments, individuals must receive one or more of the following during a specified eligibility window:
Means-Tested Benefits
- Universal Credit
- Income Support
- Income-based JSA
- Income-related ESA
- Working Tax Credit
- Child Tax Credit
- Pension Credit
Disability Benefits
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
Pensioner Support
- Must qualify for the Winter Fuel Payment for 2025–2026.
Those who only receive New Style ESA or JSA or contributory-based benefits without any of the above are not eligible for the cost of living payments.
How and When Will You Be Paid?
The payments will be automatic, with no application required. Funds will be deposited using the same method as your regular benefit payments. To avoid delays:
- Keep your bank account details up to date.
- Ensure your benefit claim is current and active.
- Monitor your payment dates through your benefits account.
Expected payment periods:
- Spring 2025 – £301 payment
- Summer 2025 – £300 payment
- Autumn 2025 – £299 payment
- Mid-2025 – Disability support payment (£150)
- Winter 2025–26 – Pensioner winter bonus (£150 to £300)
2022 vs 2025 Cost of Living Support
| Year | Payment Scheme | Total Value | Eligibility Base |
|---|---|---|---|
| 2022 | £650 Cost of Living Payment | £650 | Means-tested benefits |
| 2025 | Three payments + extras | £900+ | Broader eligibility including disability and pensioners |
Additional Support: Household Support Fund
Beyond the direct payments, the government has allocated £742 million to the Household Support Fund for the period of 1 April 2025 to 31 March 2026.
This fund is designed to provide crisis support to vulnerable households in need, covering essentials such as food, energy, and water bills. Local authorities have discretion on how to distribute this support, so it’s advisable to contact your local council for more information.
While the original 2022 scheme was a lump-sum structure, the 2025 model distributes aid in segments, offering more consistent support throughout the year.
Although the £650 Cost of Living Payment from 2022 is not being reissued in the same format, the government is offering an even more robust support package for 2025.
With up to £900 in support for eligible individuals and families, this year’s scheme is more inclusive and better timed to match seasonal needs like utility bills and winter expenses.
Make sure your benefit details are current, and monitor your payments throughout the year for timely assistance.
FAQs
Will the £650 cost of living payment be repeated in 2025?
No, it will not return in the same format. However, three new payments totaling £900 are being issued for eligible individuals.
Do I need to apply for the 2025 cost of living payments?
No application is necessary. If you’re receiving an eligible benefit during the qualifying period, the payment will be sent automatically.
What happens if I change banks or move homes?
Update your banking and address details through your benefit account to avoid any disruption in receiving your payment.
Can I receive more than one type of Cost of Living Payment?
Yes, if you qualify under different categories (e.g., you receive both PIP and Pension Credit), you may receive multiple payments.
What is the Household Support Fund?
It’s a government fund allocated to local authorities to provide additional support to vulnerable households. Contact your local council to learn about available assistance.