In early 2024, millions of UK households benefited from the final installment of the £900 Cost of Living support package—a £299 non-taxable payment aimed at easing financial pressure from rising prices. As May 2025 begins, many are asking: Is the £299 payment coming back?
While no confirmation has been made yet, there are key updates and alternative support schemes you should be aware of. Here’s what we know so far.
A Quick Recap: What Was the £299 Payment?
The £299 Cost of Living Payment was the third and final part of the £900 support plan issued across 2023–2024. These payments were meant for individuals on means-tested benefits, distributed as:
| Installment | Amount | Date Issued |
|---|---|---|
| 1st | £301 | Spring 2023 |
| 2nd | £300 | Autumn 2023 |
| 3rd | £299 | February 2024 |
To qualify, individuals needed to be on one or more of the following:
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Universal Credit
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Pension Credit
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Income-based JSA
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Income-related ESA
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Income Support
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Working Tax Credit
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Child Tax Credit
These payments required no application, didn’t affect existing benefits, and were not taxable.
Is the £299 Payment Coming Back in May 2025?
As of May 2025, the UK government has not officially confirmed a new round of £299 payments. However, multiple factors could influence future announcements:
1. The 2025 General Election
An upcoming general election may push political parties to include fresh cost-of-living relief in their manifestos to win public favor.
2. Economic Conditions
Inflation spikes or sharp energy price increases could drive the government to introduce new targeted assistance.
Household Support Fund Extended Until 2026
Even without a new £299 payment, the Household Support Fund (HSF) continues to provide aid through March 2026.
This fund covers:
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Grocery vouchers
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Emergency cash grants
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Utility bill assistance
The best part? You don’t need to be on benefits to apply. Low-income workers and individuals with urgent financial needs are also eligible.
To apply, contact your local council’s welfare department or check their official website.
Other Confirmed Financial Supports in May 2025
Benefit & Pension Increases (Effective April 2025)
| Benefit Type | Increase |
|---|---|
| Universal Credit | +1.7% |
| Other Means-Tested Aid | +1.7% |
| State Pension | +4.1% (Triple Lock) |
These increases aim to keep pace with cost-of-living hikes for vulnerable groups.
Alternative Support Options This Month
If the £299 payment doesn’t return, here are alternatives worth exploring in May 2025:
Local Council Welfare Schemes
Your local authority may offer:
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Supermarket vouchers
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Fuel or heating bill assistance
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Grants for school uniforms or appliances
Winter Fuel Payments
If born before 25 September 1957, you could receive £250 to £600, depending on your circumstances.
Cold Weather Payments
When temperatures drop below 0°C for seven consecutive days, certain benefits recipients may get £25/week.
Energy Bill Help
The Energy Price Cap remains in effect to protect customers. You can also apply for supplier hardship funds or look into switching providers for better rates.
Budgeting Advances (For Universal Credit Claimants)
If you’re on Universal Credit, you might be eligible for a Budgeting Advance to cover big or urgent expenses like moving costs or home repairs.
Tips to Prepare If the £299 Payment Doesn’t Return
If the payment isn’t reintroduced, here’s how to safeguard your finances:
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Check Benefit Eligibility
Use a verified benefits calculator to see what support you might already qualify for. -
Apply for Emergency Grants
Groups like Citizens Advice, Turn2us, and StepChange offer one-time help and guidance. -
Start Budget Planning
Use tools like MoneyHelper’s Budget Planner to trim non-essential expenses and manage monthly costs.
What Experts Are Saying
Most analysts believe the government may now shift toward targeted assistance rather than broad universal payments like the £299 one. However, with rising housing costs and council tax bills, another round of support remains a possibility—especially during an election year.
FAQs
Is the £299 payment confirmed for May 2025?
No, the UK government has not announced a new £299 payment for May 2025. However, alternative support options like the Household Support Fund are still active.
Who can apply for the Household Support Fund in May 2025?
Anyone facing financial hardship—including benefit recipients, low-income workers, or people with sudden expenses—can apply via their local council.
Will my pension increase in May 2025?
Yes. The State Pension rose by 4.1% in April 2025, following the triple lock system.
Can I get help with energy bills this year?
Yes. Depending on your situation, you may qualify for Cold Weather Payments, Winter Fuel Payments, or supplier hardship schemes.
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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.