£299 Cost of Living Payment in April 2025: Will It Return? What Households Must Know

The £299 Cost of Living Payment helped ease the burden for millions of UK households in early 2024. As inflation, energy costs, and food prices continued to rise, this support was seen as a critical financial relief. Now in April 2025, the question many are asking is: will the £299 payment return?

Currently, there’s no official confirmation that the government will issue another £299 payment in 2025. However, several other support schemes remain active to assist low-income or struggling households.

What Was the £299 Cost of Living Payment?

This payment was part of a £900 support package delivered in three stages between 2023 and 2024. It was sent automatically to those receiving specific means-tested benefits.

Who Qualified for the £299 Payment?

Eligibility was tied to means-tested benefits such as:

• Universal Credit

• Pension Credit

• Income-related ESA or JSA

• Income Support

• Child Tax Credit

• Working Tax Credit

The payment was non-taxable and didn’t affect other benefit entitlements.

Is the £299 Payment Returning in 2025?

As of April 2025, there is no confirmation that this payment will return. Factors influencing this include:

• General Election 2025: With elections approaching, political pressure could trigger new support announcements later in the year.

• Targeted Support Shift: The government is prioritising tailored help like the Household Support Fund instead of widespread payments.

What Financial Support Is Available in April 2025?

There are several ongoing schemes and benefit increases that can help households:

1. Household Support Fund (HSF)
   Extended through March 2026, this fund offers help with food, utilities, and emergency costs. Applications are made through your local council.

2. Benefit and Pension Increases
   From April 2025:

• Universal Credit and related benefits have increased by 1.7%

• State Pension rose by 4.1% under the triple lock formula

3. Local Council Assistance
   Councils may offer:

• Food and supermarket vouchers

• Utility grants

• Furniture and appliance support

4. Winter Fuel and Cold Weather Payments

• Winter Fuel Payment: Up to £600 for eligible pensioners

• Cold Weather Payment: £25 per week if temperatures fall below 0°C for 7 days

5. Energy Bill Relief and Price Cap
   The Ofgem price cap remains in place to limit high charges. Households can still seek payment plans or discounts through energy providers.

What to Do if You’re Still Struggling

If the £299 doesn’t return, there are still ways to ease financial stress:

Budgeting Advances (for Universal Credit Claimants):

• Can be used for emergencies like appliance repair or work travel

• Paid back through small deductions from future benefits

Financial Planning Tips:

• Check entitlements: Use the benefits calculator on gov.uk

• Budget weekly: Try free budgeting tools like MoneyHelper

• Speak to charities: Turn2us, StepChange, and Citizens Advice can provide emergency grants

• Plan smarter with a partner: Spouses can combine benefits planning to maximise support

Will a Similar Payment Return Later in 2025?

While the exact £299 figure may not return, experts suggest the government could introduce a similar one-time support scheme closer to the general election. If inflation worsens or political campaigns prioritise cost-of-living issues, a new relief payment could be announced under a different name.

FAQs

Will the £299 payment return in 2025?

There’s no confirmation yet. However, political and economic changes later in the year may lead to a new support scheme.

Who can access the Household Support Fund?

Anyone facing hardship, not just benefit recipients. You can apply through your local council’s website.

Are there still energy bill discounts in 2025?

Yes. The Energy Price Cap is active, and providers offer hardship support or flexible plans for struggling households.

Has Universal Credit increased this year?

Yes. Universal Credit and related benefits were increased by 1.7% in April 2025.

How can I find out what support I’m entitled to?

Use the official GOV.UK benefits calculator or seek free advice from Citizens Advice.

Conclusion

While the £299 Cost of Living Payment is not expected to return in April 2025, support hasn’t disappeared. Whether you’re on benefits, struggling with rent or utility bills, or need emergency relief, options like the Household Support Fund and council aid can offer timely assistance. It’s important to act early, check your eligibility, and use the tools available to secure the help you deserve.