Cost of Living Payment – £1,200 Support Package (Now Ended)

This temporary package was introduced to help people on means-tested benefits cope with rising costs in energy, housing, and essentials during 2022–2024. It included:

• Main Payments:
  • £326 (July 2023)
  • £324 (November 2023)
    These two payments made up the £650 Cost of Living Payment, given automatically to those on qualifying benefits.
• Additional Support:
  • £150 Disability Payment (September 2023)
  • £300 Pensioner Payment (Winter 2023/24)

Combined, these measures could total up to £1,200 for eligible individuals.

To qualify, individuals had to be receiving at least one of the following income-based benefits during a specific assessment period:

• Universal Credit
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Pension Credit
• Working Tax Credit or Child Tax Credit (via HMRC)

Payments were automatic-no application was required.

• Paid directly into the bank account linked to your benefit
• Split between the Department for Work and Pensions (DWP) and HMRC, depending on which benefits you received
• No need to apply or submit personal information-government records determined eligibility

Although the Cost of Living Payment scheme has ended, several updated support options are available in 2025 for low-income and vulnerable households.

1. Household Support Fund (HSF) – Open Until March 2026

• What it is: The HSF has been extended and will run from 1 April 2025 to 31 March 2026.
• What it covers: Food, energy and water bills, essential household items, emergency needs (including white goods, clothing, and heating).
• How to access: Apply through your local council’s website or welfare team. Each local authority sets its own eligibility and application process.

2. Local Welfare and Crisis Support

• Discretionary hardship funds managed by councils across the UK.
• May cover food or supermarket vouchers, energy top-ups, emergency household repairs, and rent arrears.
• Action: Contact your local council or visit their website for eligibility and application details.

3. Council Tax Reduction (CTR)

• Most local authorities offer Council Tax discounts for those on low incomes or benefits.
• Action: Apply through your local council’s website. Some councils may also offer additional hardship funds.

4. Help with Housing Costs

• Housing Benefit: For pensioners and supported accommodation.
• Universal Credit – Housing Element: For renters.
• Discretionary Housing Payments (DHPs): For those whose benefit doesn’t cover full rent.
• Support for Mortgage Interest (SMI): Repayable loan for help with mortgage interest.
• Action: Contact your local council or Jobcentre Plus for details.

5. Social Tariffs for Broadband and Mobile

• Discounted broadband and phone packages for low-income households, starting at £10–£20/month.
• Action: Contact your service provider and ask to switch to a social tariff. You’ll usually need to be on a qualifying benefit.

6. Water Bill Support

• Water companies provide help via bill discounts, payment breaks, and trust funds for arrears.
• Action: Visit your water provider’s website to apply.

7. Winter Fuel and Cold Weather Support

• Winter Fuel Payment: For pension-age households.
• Cold Weather Payment: For eligible claimants during extreme weather periods (automatic).
• Energy Price Cap: Continues to protect against extreme price spikes.
• Action: These are automatic if you qualify; no application is needed.

Click Here to Check if You Qualify for Free Home Upgrades

• Stay Informed: Visit GOV.UK or your local council’s website for updated guidance.
• Check Eligibility Regularly: Schemes change-review your eligibility, even if you did not qualify in the past.
• Be Scam Aware: Government support does not require you to share bank details by phone or email.
• Use Free Advice Services:
  • Citizens Advice: citizensadvice.org.uk
  • Turn2Us: turn2us.org.uk
  • StepChange: stepchange.org

The £1,200 Cost of Living Payment helped millions during 2022–2024 but is no longer available in 2025. However, the Household Support Fund and other local and national schemes remain open, offering targeted help for those most in need. Check regularly with your local council and GOV.UK for the latest information and to apply for current support.

ECO4 Support Available:

• Department for Business, Energy & Industrial Strategy – Energy Company Obligation
• Ofgem –  Energy Company Obligation (ECO4) Guidance: Delivery V1.1
• Ofgem – Energy Company Obligation (ECO)
• UK Government – Help from your energy supplier: the Energy Company Obligation
• Which? – Energy Company Obligation (ECO)

Other Support Available:

• Household Support Fund
• Cold Weather Payment
• Cost of Living
• Fuel Vouchers