£299 Cost of Living Payment in April 2025: As the cost of living continues to stretch household budgets across the UK, many are wondering: Will there be another £299 Cost of Living Payment in April 2025? This one-off payment, previously distributed to eligible claimants, offered some much-needed relief. However, with inflation still a concern and benefit changes on the horizon, it’s crucial to understand what support is available, what’s changing in April 2025, and how it may affect you. In this guide, we’ll explore the latest DWP announcements, examine current and upcoming support measures, and provide a breakdown of key financial updates for 2025—making it simple for both everyday individuals and professionals to stay informed and prepared.
£299 Cost of Living Payment in April 2025
While there won’t be a £299 Cost of Living Payment in April 2025, several positive financial changes are coming into effect—from increases in Universal Credit and the State Pension to an uplift in the National Minimum Wage. The government appears to be shifting from one-off payments to more sustainable long-term increases in benefit rates. Understanding what changes are coming, staying updated, and taking timely action can help you manage your finances better during uncertain economic times. If you’re unsure about your situation, use online benefit calculators or speak with a qualified welfare advisor to get tailored support.
| Topic | Details |
|---|---|
| £299 Cost of Living Payment | No repeat announced for April 2025 |
| Universal Credit Increase | 1.7% rise aligned with CPI inflation |
| State Pension | Increases by 4.1% under triple lock |
| Minimum Wage | Rises to £12.21 per hour (ages 21+) |
| Tax Credits | Ending April 5, 2025; move to Universal Credit |
| Household Support Fund | Extended until March 2026 |
| Carer’s Allowance Threshold | Raised to £196/week |
| Official Guidance | GOV.UK Cost of Living Payment |
What Was the £299 Cost of Living Payment?
The £299 Cost of Living Payment was the final installment in a three-part support package provided by the UK Government in 2023–2024 to help vulnerable households deal with the rising cost of essentials. This payment was distributed to those on eligible benefits such as:
- Universal Credit
- Pension Credit
- Income-based JSA/ESA
- Tax Credits
The final round was paid between February 6 and February 22, 2024. No further payments have been confirmed since.
Is the £299 Payment Returning in April 2025?
As of March 29, 2025, the Department for Work and Pensions (DWP) has not announced any plans to issue a repeat of the £299 payment this April. While speculation continues online, there has been no official confirmation or proposal in the Spring Budget 2025 to suggest a new round of payments.
However, several key benefit increases and support measures are scheduled for April 2025, which could offer financial relief to low-income households.
Key Support Changes in April 2025
1. Universal Credit and Benefit Uplift
From April 2025, working-age benefits will increase by 1.7%, reflecting the CPI inflation figure from September 2024. This includes:
- Universal Credit: Standard allowance for single adults over 25 will increase from £393.45 to around £400.14 per month.
- PIP and ESA will also see modest rises.
2. State Pension Increase
Under the triple lock policy, the State Pension will rise by 4.1%, effective from April 7, 2025. This means:
- Full new State Pension: From £230.25 to approx. £239.66 per week
This rise reflects strong wage growth, ensuring that retirees’ incomes keep pace with the cost of living.
3. Minimum Wage Increase
From April 2025, the National Minimum Wage for workers aged 21 and over will increase to £12.21 per hour, up from £11.44. This is part of the government’s continued plan to support low-wage workers amid inflationary pressures.
4. Tax Credits Transition
The government is phasing out legacy benefits, including Working Tax Credit and Child Tax Credit, with a final cut-off date of April 5, 2025.
All affected households will be migrated to Universal Credit. It’s crucial to act when you receive your Migration Notice—failing to do so could result in your benefits stopping.
5. Household Support Fund Extension
The Household Support Fund has been extended until March 2026, offering local councils the ability to assist low-income households with:
- Food
- Utility bills
- Emergency essentials
This is not automatic—you must apply through your local council.
6. Carer’s Allowance: Earnings Threshold Rises
From April 7, 2025, the earnings limit for Carer’s Allowance increases from £151 to £196 per week. This change gives carers more flexibility to work part-time while still receiving support.
Practical Tips to Prepare
- Check eligibility for benefit increases using an online benefits calculator.
- Update personal information with DWP and HMRC to avoid missing out on critical letters or payments.
- Review your budget based on new rates, especially if you rely on Universal Credit or PIP.
- Act on migration letters if you’re on Tax Credits—missing deadlines can stop your payments.
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FAQs About £299 Cost of Living Payment in April 2025
Q1: Will the £299 Cost of Living Payment be repeated in 2025?
As of now, there are no plans or official announcements for a repeat Cost of Living Payment in April 2025. The February 2024 payment was the final confirmed installment.
Q2: How do I know if I qualify for benefit increases?
If you currently receive benefits like Universal Credit, PIP, ESA, or Pension Credit, you will automatically receive the new payment rates starting April 2025. No reapplication is needed.
Q3: What should I do if I’m on Tax Credits?
You’ll receive a Migration Notice before April 5, 2025. Follow the instructions and claim Universal Credit within the deadline provided to avoid a loss of income.
Q4: Where can I apply for the Household Support Fund?
You need to apply through your local council’s website or offices. Each council has its own eligibility criteria and support packages.
Q5: Can I still get help if I don’t receive benefits?
Yes. You may be eligible for local council schemes or the Household Support Fund, even if you don’t receive mainstream benefits. Contact your local authority to explore options.
