As of May 2025, the UK government has officially completed the final instalment of the £900 cost-of-living support package designed to help low-income households weather the ongoing economic pressure. The Department for Work and Pensions (DWP) confirmed that the last payment has now been disbursed, bringing closure to the multi-phase support scheme first announced in 2022.
What Was the £900 Cost-of-Living Payment?
The £900 cost-of-living payment was introduced as part of a broader financial assistance initiative aimed at supporting vulnerable households affected by the inflationary crisis, energy price hikes, and rising living costs. The payment was distributed in three instalments over the course of the financial year:
- First payment: £301 (Spring 2023)
- Second payment: £300 (Autumn 2023)
- Final payment: £299 (Spring 2024)
Although all three payments have now been issued, their impact continues to be felt in 2025, as households adapt to new economic conditions and prepare for future policy updates.
Eligibility Criteria Explained
To qualify for the £900 payment, recipients needed to be claiming one of the following means-tested benefits during the designated qualifying periods:
- 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
Those receiving only contribution-based benefits, such as New Style JSA or ESA, were not eligible unless they also received one of the qualifying income-based benefits.
When Was the Final Payment Made?
The final payment of £299 was rolled out between February and March 2024. However, DWP continued processing late claims and adjustments into early 2025, ensuring that eligible households who experienced administrative issues were not left out. This has now concluded as of May 2025.
Payment Distribution Table
| Payment Stage | Amount | Issued Date | Eligibility Based On |
|---|---|---|---|
| First Payment | £301 | April – May 2023 | Benefits received by Feb 2023 |
| Second Payment | £300 | October – November 2023 | Benefits received by Aug 2023 |
| Final Payment | £299 | February – March 2024 | Benefits received by Dec 2023 |
What to Expect Moving Forward in 2025
Although the £900 payment series has ended, the economic challenges prompting these support measures have not vanished. In fact, with inflation still higher than pre-pandemic levels and energy prices only modestly reduced, many households remain financially vulnerable.
Looking ahead, the government has hinted at developing a more targeted approach to cost-of-living support. Instead of blanket payments, the focus may shift to:
- Increasing benefits in line with inflation.
- Reforming the Warm Home Discount scheme.
- Boosting local council funding to administer emergency support.
- Strengthening employment incentives through tax credits.
Reactions from Public and Advocacy Groups
Charities and think tanks have generally welcomed the support but stress that one-off payments are not a sustainable solution. The Joseph Rowntree Foundation and Citizens Advice have called for long-term policy reforms that address the root causes of poverty rather than applying temporary relief.
Conclusion
The final £299 cost-of-living payment marks the end of a significant chapter in the UK government’s response to the cost-of-living crisis. While the £900 support package provided timely relief for millions, ongoing pressures mean that structural changes in welfare, wages, and housing policy will be necessary for lasting economic security. As of May 2025, attention is now turning to what’s next — not just for benefit recipients, but for the broader social safety net.
FAQs
What were the exact payment dates for the final instalment?
The final £299 payment was issued between 6 February and 6 March 2024, depending on benefit type and payment system. Delayed payments were resolved by April 2025.
Will there be another cost-of-living payment later in 2025?
As of May 2025, there are no confirmed plans for additional payments. Future support is likely to be embedded in broader benefit reforms or energy relief programmes.
How do I check if I received all three payments?
You can check your bank statements for deposits marked with your National Insurance number and the reference code used by DWP. Alternatively, contact DWP or HMRC if you were on Tax Credits.
What should I do if I missed a payment?
Claims for missing payments are now closed unless you had an open inquiry before April 2025. If unresolved, seek help from Citizens Advice or your local benefits office.
Are these payments taxable?
No, cost-of-living payments are tax-free and do not count towards the benefit cap or affect other benefit entitlements.
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