As the cost of living continues to rise across the UK, the government is offering a £288 Cost of Living Payment in April 2025 to help vulnerable individuals and families. This support is part of a larger initiative aimed at easing financial pressure caused by inflation, energy bills, and daily essentials.
If you’re on Universal Credit or related benefits, this one-time payment could land in your account soon.
What Is the £288 Cost of Living Payment?
The £288 payment is the second instalment in a series of support measures provided by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC). It follows a previous payment of £308, issued last year to over 18 million households.
This payment is automatic for most recipients and helps cover essential needs such as rent, groceries, and heating costs.
Payment Details at a Glance
| Detail | Information |
|---|---|
| Payment Amount | £288 (second instalment) |
| Expected Month | April 2025 |
| Who Is Paying | DWP or HMRC |
| Payment Reference Code | “DWP COL” or “HMRC COL” |
| Application Needed? | No – issued automatically if eligible |
| Total Support in 2025 | Up to £900 across three instalments |
Eligibility Criteria for the £288 Payment
To qualify for the April 2025 payment, you must:
-
Be a UK resident
-
Be receiving one of the following benefits:
-
Universal Credit
-
Pension Credit
-
Income Support
-
Income-Based ESA
-
Working Tax Credit or Child Tax Credit
-
-
Have a household income under £16,000 annually
-
Meet eligibility during the qualifying period (exact dates to be confirmed by DWP)
Universal Credit Updates in 2025
The government is introducing several updates in 2025 to strengthen the welfare system and better support vulnerable households:
Higher Allowances & Supplements
-
Universal Credit Increase: Standard allowances have been adjusted to match inflation
-
Disability Supplement: Extra £150 support for disabled individuals
-
Pensioner Boost: An additional £300 allowance to help retired individuals
-
Winter Fuel Payment: Increased support for pensioners to cover rising heating costs
Universal Credit 2025 Payment Schedule
| Payment Type | Amount | Month |
|---|---|---|
| 1st Instalment (Paid) | £308 | 2024 |
| 2nd Instalment | £288 | April 2025 |
| 3rd Instalment (Upcoming) | £304 (TBC) | Late 2025 |
All payments will be labeled accordingly in your bank statement as “DWP COL” or “HMRC COL”.
Upcoming Universal Credit Policy Changes – April 2025
| Update | Details |
|---|---|
| UC Deduction Limit Reduction | From 25% to 15% of the standard allowance |
| Carer’s Allowance Earnings Threshold | Raised from £151 to £181/week |
| Household Support Fund Extension | Extended until March 2026 |
| Benefits & Pensions Increase | Includes maternity, paternity, adoption, and sick pay |
| Disability Benefits Boost | £1.1 billion set aside for 2025 support programs |
These changes aim to make Universal Credit more flexible and fair, especially for low-income households and unpaid carers.
Funding and Expansion of Universal Credit
-
Initial Budget: £8.8 million
-
Expanded to: £15.2 million by 2022
-
Current 2025 Budget: £7.5 billion, with a 6.5% claim increase (CPI-indexed)
-
Targeted Disability Support: £1.1 billion allocated
-
Winter Energy Relief Fund: £8.8 million reserved for pensioners’ heating bills
The government’s long-term goal is to continue expanding Universal Credit while reducing deductions and increasing targeted aid.
FAQs
Who is eligible for the £288 Universal Credit payment?
You are eligible if you receive Universal Credit, Pension Credit, Income Support, or similar qualifying benefits, have annual income under £16,000, and reside permanently in the UK.
When will the £288 payment be made?
The second instalment is expected to be paid in April 2025. Exact dates will be confirmed by DWP.
Do I need to apply to receive this payment?
No. The payment is automatic for those who qualify during the eligibility window. Watch for “DWP COL” or “HMRC COL” in your bank statement.
How many total Cost of Living payments will there be in 2025?
There will be three payments totaling up to £900. The April payment is the second instalment.
Will this affect my other benefits?
No. The £288 is a non-taxable, non-impacting payment. It does not count toward income for benefits calculations.
What if I don’t receive the payment?
If you qualify but haven’t received the payment by end of April, contact DWP or HMRC and check your benefit statements or the gov.uk missing payment tool.
Click here to know more.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.