Is the £299 Cost of Living Payment Coming Back in April 2025?

In early 2024, millions of UK households breathed a sigh of relief when they received the £299 Cost of Living Payment. This payment was the final installment in a larger £900 support package aimed at helping families manage soaring bills, inflation, and everyday expenses.

As we move closer to April 2025, the big question for many households is: Will the government issue another round of cost-of-living payments?

Let’s take a closer look at what’s known so far, what support is still available, and how you can prepare financially—just in case another round of payments isn’t announced.

A Quick Recap: What Was the £299 Cost of Living Payment?

The £299 payment was the third and final part of the £900 support package distributed across 2023–2024. It was intended for people receiving means-tested benefits.

Installments included:

Who qualified?

You were eligible if you received any of the following:

• 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

Key Features:

• Non-taxable

• No application needed

• Did not affect existing benefits

Is the £299 Payment Coming Back in April 2025?

As of now, the UK government hasn’t officially confirmed whether another £299 Cost of Living Payment will be made in April 2025. But there are a few developments to watch closely:

1. The 2025 General Election May Shape Policy

The upcoming general election could influence whether future support is announced. Political parties might include cost-of-living relief in their manifestos to appeal to voters.

Economic shifts, such as rising inflation or energy price spikes, could also trigger renewed payments.

2. Household Support Fund Extended

Good news: Even if the £299 payment doesn’t return, the Household Support Fund (HSF) is extended until March 2026.

What can it cover?

• Food vouchers

• Utility bill support

• Emergency cash for urgent needs

You don’t need to be on benefits to qualify—low-income workers and those facing unexpected expenses can also apply.

How to apply?

Contact your local council’s welfare department or visit their website for specific details.

3. Benefit & Pension Increases from April 2025

The government has already planned increases to some core benefits starting in April 2025:

These increases aim to help households keep pace with rising living costs.

Alternative Support Options in April 2025

Even without the £299 payment, several helpful schemes are still available:

Local Council Welfare Assistance

Many councils run their own support programs. Depending on where you live, you could get help with:

• Supermarket vouchers

• Heating/fuel grants

• Help purchasing school uniforms or essential appliances

Winter Fuel Payments

If you were born before 25 September 1957, you may qualify for a Winter Fuel Payment worth £250 to £600, depending on your situation.

Cold Weather Payments

When temperatures drop below 0°C for seven days straight, you may receive £25 per week if you’re on certain benefits.

Energy Bill Relief

The Energy Price Cap by Ofgem will continue offering some protection. While energy bills are still higher than pre-pandemic levels, they are expected to drop slightly in April 2025.

It’s worth exploring:

• Switching energy providers for better rates

• Applying for supplier hardship funds

Budgeting Advances for Universal Credit Claimants

If you receive Universal Credit, you might be eligible for a Budgeting Advance to cover large or emergency expenses like:

• Appliance repairs

• Travel for work

• Moving costs

This is repaid in small deductions from future payments.

Tips to Prepare If the £299 Payment Doesn’t Return

Worried about your budget if the payment isn’t reintroduced? Here are a few smart steps to consider:

Check Your Benefit Eligibility

Many people don’t realize they qualify for extra help. Use a government-approved benefits calculator to check what you could be entitled to.

Explore Charitable Grants and Emergency Help

Organizations like:

• Citizens Advice

• Turn2us

• StepChange

…offer advice, budgeting help, and even one-off emergency grants.

Use Budgeting Tools

Try the MoneyHelper Budget Planner or apps that track your spending. Cutting back on subscriptions or unused services can save you more than you’d think.

What Are Experts Saying?

Many analysts now believe the government may shift focus away from universal payments like the £299 one. Instead, they may prioritize targeted, need-based assistance.

That said, rising housing costs, council tax hikes, and stagnant wages could force policymakers to reconsider. If inflation rises sharply or economic pressures mount, a new cost-of-living payment may still be introduced—especially in the lead-up to a general election.

FAQs

1. Is the £299 payment confirmed for April 2025?

No, the government hasn’t announced any plans to issue a £299 payment in April 2025. However, several other support options are available.

2. Who can apply for the Household Support Fund?

Anyone facing financial hardship may apply—this includes benefit claimants, low-income workers, or people experiencing sudden expenses. Contact your local council for details.

3. Will my pension go up in April 2025?

Yes. The State Pension is expected to rise by 4.1%, thanks to the government’s triple lock commitment.

4. Can I get help with my energy bills in 2025?

Yes. You may qualify for Cold Weather Payments, Winter Fuel Payments, or hardship grants through your energy supplier.

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