DWP issues update on cost of living payments 2025 - check if you can claim an extra £300 free cash

The DWP officially confirmed no further cost of living payments will be introduced under the Labour Government.

Between 2022 and 2024, low-income households received a series of one-off payments worth £326, £324, £301, £300 and £299 to help with soaring energy bills and record inflation.

Disabled households received two payments worth £150, while pensioner households were entitled to payments of either £150 or £300 on top of Winter Fuel Payments.

Despite online rumours, the DWP stated clearly: "DWP is not planning to make any more Cost of Living Payments."

However, struggling households can still access financial support through the Government-funded Household Support Fund (HSF) scheme.

First launched in 2021, the HSF has been extended by the Labour Government until March 2026 with an additional £742million of funding.

The scheme provides local councils with money to support vulnerable residents in their areas.

Each council determines how to distribute this support, which can range from direct cash payments to supermarket vouchers. Help available varies by location, creating what some describe as a postcode lottery for assistance.

Councils typically detail available support and eligibility criteria on their websites, often under dedicated cost of living sections.

Application processes differ between councils, with some accepting online applications while others require telephone applications. Some councils proactively contact eligible residents directly.

Bournemouth, Christchurch and Pool Council (BCP) is among the local authorities offering substantial support through the HSF. The council is providing financial aid worth up to £300 to households unable to meet basic costs.

This represents the seventh round of HSF grants for the region, funded by the DWP. Eligible families can receive household grants for essential bills and food support.

The scheme offers grant vouchers worth £150 to qualifying residents in two separate rounds over the funding period. Applications must be submitted during specific windows throughout the year.

The initiative aims to provide low-income households with vital short-term financial support while also offering practical advice on money management and energy efficiency.

BCP Council's HSF also provides a school holiday food voucher scheme for families with children. Eligible families could receive £15 for every child during the May half-term holidays.

LATEST DEVELOPMENTS:

• Households could be eligible for £100 DWP cost of living payment but families 'only entitled to one'
• Thousands of households to receive £250 cash this weekend - are you eligible?
• Savings alert: Thousands 'completely in the dark' over account change costing you £1,048 a year

The fund supports heat-saving upgrades including loft or cavity wall insulation and other energy-saving measures to reduce bills.

Households in Medway struggling to meet the cost of living can claim a share of £4million. The money is shared out to local authorities to allocate, with Medway having £3,987,524 for the coming financial year.

Torbay Council has reopened their Household Support Fund scheme for residents living in the area and is giving away one-off payments of £100.

This free payment can be used towards fuel, water, or food costs.

However, not everyone is eligible for the help. Households living in Torbay can receive it if they claim the following DWP benefits:

• Universal Credit
• Employment and Support Allowance (ESA)
• Income Support
• Pension Credit

While the DWP has ended its direct cost of living payments, the extended HSF ensures vulnerable households can still access vital support until spring 2026.

Residents should check their local council websites for specific eligibility criteria and application windows.

Each council will also have a different application process for the scheme.