As the cost of living crisis continues to put pressure on millions of UK households, the government has confirmed a new round of financial relief in 2025.
A £650 Cost of Living Support Payment will be distributed to help those most affected by inflation, rising energy bills, food costs, and stagnant wages. This follows previous support payments issued in 2022 and 2023 but comes with updated eligibility rules and an easier application process for new claimants.
The Department for Work and Pensions (DWP) has emphasized that the 2025 version of the scheme is aimed at offering meaningful financial relief to low-income families, pensioners, people with disabilities, and unemployed individuals.
Who Is Eligible for the £650 Support Payment?
Eligibility is primarily determined by whether an individual or household receives certain means-tested benefits. These include Universal Credit, Pension Credit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Child Tax Credit, and Working Tax Credit.
To qualify, recipients must have been claiming these benefits during the qualifying period, which has been set as between 15 January and 14 February 2025. For those on tax credits only, the payment will come from HM Revenue & Customs (HMRC), while all other eligible recipients will be paid by DWP.
New in 2025, the support payment has also been extended to include people who earn below the tax threshold but are not currently receiving benefits, provided they can show proof of financial hardship through the new Local Support Gateway.
What’s New in 2025?
The biggest update in 2025 is the introduction of a single combined payment of £650, instead of splitting it into two or three instalments as was done in earlier years. The goal is to ensure quicker impact and more flexibility for households managing urgent bills.
Another key change is the addition of the Local Support Gateway, an online platform where individuals not already on benefits can submit financial hardship statements, utility bills, and income documents to be considered for the one-time £650 payment. This ensures that households that may have previously fallen through the cracks are now included.
The government has also made improvements to how the payments are distributed. Unlike in previous years when there were delays, the 2025 rollout has been redesigned to complete disbursements within four weeks of the official start date.
When Will the £650 Payment Be Made?
Payments are scheduled to begin in April 2025, with all disbursements expected to be completed by the end of May. The schedule varies slightly depending on whether a recipient gets their benefits through DWP or HMRC.
| Payment Group | Payment Window | Payment Agency |
|---|---|---|
| Universal Credit, Income-Based JSA/ESA | April 8 – April 20, 2025 | DWP |
| Pension Credit, Income Support | April 10 – April 25, 2025 | DWP |
| Tax Credit Only Recipients | May 1 – May 15, 2025 | HMRC |
| Local Support Gateway Applicants | May 10 – May 31, 2025 | Local Councils |
Recipients will receive the payment automatically if their benefit account details are up to date. No separate application is needed unless applying through the Local Support Gateway.
How to Apply If You’re Not Already on Benefits
For those not currently receiving DWP or HMRC benefits, the Local Support Gateway allows manual application for the £650 payment. Applicants must register via the official government portal and upload required documents, such as proof of residence, income details, and recent utility bills. Successful applications will be reviewed and paid within 2–3 weeks, with payment made directly into the applicant’s nominated bank account.
This approach opens the door for newly vulnerable households who may be experiencing short-term unemployment, wage cuts, or medical crises to receive help without waiting for traditional benefit applications to process.