Is the £299 Cost of Living Payment Returning in April 2025? What We Know So Far

In early 2024, the UK government issued a £299 Cost of Living Payment—the final installment of a £900 package aimed at helping low-income households manage inflation and mounting bills. Now, as April 2025 arrives, the question on many minds is: will the government reintroduce this payment?

As of now, there’s no official confirmation that the £299 payment will be repeated. However, a number of support options are still active, and new policy decisions could emerge in the lead-up to the 2025 general election.

2025 UK Cost of Living Support

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

The £299 payment was part of a broader support scheme rolled out in phases between 2023 and early 2024. It targeted individuals on means-tested benefits, providing relief from high inflation and soaring energy costs.

Payment Breakdown:

Eligibility Included:

• Universal Credit

• Pension Credit

• Income-based JSA or ESA

• Working and Child Tax Credits

• Income Support

Key benefits: it was non-taxable, required no application, and didn’t impact existing entitlements.

Why Another £299 Payment May Not Happen

The government has not announced plans to issue another cost of living payment in April 2025. Several factors are influencing this uncertainty:

1. Upcoming 2025 General Election
   With the general election expected later in 2025, political parties are likely to shape their economic policies around public needs. If inflation or public pressure increases, new payments may be proposed.

2. Shifting Focus to Targeted Aid
   Rather than broad-based payments, the government is increasingly directing support to those in critical need through funds like the Household Support Fund and enhanced benefits.

What Support Is Available in April 2025?

Even without a new £299 payment, several resources remain open:

Household Support Fund Extended Through March 2026

This fund offers short-term financial aid for essentials like:

• Food vouchers

• Emergency utility bill support

• One-off payments for unexpected crises

Who can apply?
You don’t need to be on benefits—low earners, part-time workers, and even self-employed individuals can qualify by applying through their local authority.

Increase in Benefits and Pension Payments

From April 2025, benefits and pensions have risen:

These adjustments are intended to cushion households against rising living costs and energy prices.

Additional Support Schemes in 2025

Beyond central government programs, other support mechanisms are active:

Local Council Welfare Assistance

Depending on your council, help may include:

• Supermarket vouchers

• Emergency fuel grants

• Assistance with school-related expenses or white goods

Winter Fuel Payment

If you were born before 25 September 1957, you’re eligible for up to £600, depending on your circumstances and household setup.

Cold Weather Payment

This pays £25 for each week the temperature is consistently below 0°C. It applies if you’re on certain income-related benefits.

Energy Bill Relief & Ofgem Price Cap

The Energy Price Cap remains in place, providing a safeguard against excessive utility bills. April 2025 will see modest reductions in gas and electricity rates compared to 2024, though prices remain high relative to pre-pandemic levels.

Money-saving tip: Use price comparison tools and speak with suppliers about hardship schemes if you’re struggling.

Budgeting Advances for Universal Credit Claimants

This can cover emergency expenses like:

• Broken appliances

• Work travel

• Moving costs

The amount borrowed is repaid over time via small deductions from future benefits.

How to Prepare Financially If the Payment Doesn’t Return

Check Your Entitlements

Use a government benefits calculator to see if you’re missing out on support like Council Tax Reduction, Housing Benefit, or Carer’s Allowance.

Look into Charitable Grants

Groups like:

• Citizens Advice

• Turn2us

• StepChange

…offer budgeting help and emergency cash for those in hardship.

Start Budgeting Proactively

Tools like the MoneyHelper Budget Planner can help you stretch your income. Review subscriptions, automate savings where possible, and track expenses weekly.

What Are Experts Predicting for 2025?

While a repeat of the £299 payment isn’t guaranteed, economic uncertainty remains. With rising rents, food inflation, and stagnant wages, the government may need to reassess their position—especially with an election on the horizon. If inflation ticks up or public pressure grows, a new support payment could still be introduced later in 2025.

Conclusion

Though the £299 Cost of Living Payment isn’t scheduled to return in April 2025, various support systems remain in place to assist households. From the Household Support Fund to benefit increases and local council aid, it’s vital to explore every available option. Whether you’re already receiving benefits or simply facing unexpected hardship, help is accessible—but you’ll need to act early and stay informed.

FAQs

Will the UK Government Provide Another £299 Payment in 2025?

As of April 2025, there’s no confirmation. However, the upcoming election could influence future decisions depending on inflation and public demand.

What Should I Do If I’m Struggling with Bills?

Start by checking your benefit eligibility using government calculators. Also explore help from charities, local councils, and energy suppliers offering hardship grants.

Can I Apply for the Household Support Fund Without Being on Benefits?

Yes, you don’t have to be on Universal Credit or similar. Low-income workers and those with sudden financial issues can apply through their local council.

Is There Any Energy Bill Relief This Year?

Yes. The Ofgem Price Cap continues in 2025, and energy prices have slightly decreased compared to last year. However, bills are still high, so explore switching providers and supplier support schemes.

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