The UK government has confirmed that the final £500 cost-of-living payment will be issued in Autumn 2025, marking the last installment of direct financial support under the cost-of-living package. This payout is a continuation of measures introduced by the Department for Work and Pensions (DWP) and HM Revenue & Customs (HMRC) to help families cope with high energy bills, food prices, and inflation.
Millions of households across the UK are set to benefit from this payment, with the government aiming to ease the pressure on low-income families, pensioners, and individuals with disabilities. For many, this final boost will help manage household budgets as winter approaches—a time when energy costs typically climb.
Who Qualifies for the £500 Payment?
Eligibility depends on receiving certain means-tested benefits during the qualifying period. You may qualify if you are on:
-
Universal Credit
-
Income-based Jobseeker’s Allowance (JSA)
-
Income-related Employment and Support Allowance (ESA)
-
Income Support
-
Pension Credit
-
Child Tax Credit or Working Tax Credit (HMRC-administered)
Recipients must have been entitled to these benefits within the government’s set eligibility dates. Those who only receive contribution-based benefits without a means-tested element may not qualify.
When Will It Be Paid?
The £500 will be disbursed in Autumn 2025, with exact dates varying slightly between DWP and HMRC-administered benefits.
-
DWP Payments: Usually sent automatically into bank accounts over a set two-week window.
-
HMRC Payments: Issued a little later, especially for those on tax credits, to prevent duplication.
Most eligible households can expect the money between October and November 2025, just ahead of winter.
How Will the Payment Be Made?
Payments are automatic—there is no need to apply. The money will be sent to the same account where your benefits or tax credits are normally paid.
To help identify the payment, bank statements will show a special reference such as “DWP COLP” or “HMRC COLP”. This helps recipients distinguish it from their usual benefit payments.
Why This Payment Matters
The cost-of-living crisis has hit households hard, with rising food prices, transport fares, and utility bills stretching budgets. The final £500 payment is intended to:
-
Provide a last round of direct support before the scheme ends.
-
Help families prepare for higher winter heating bills.
-
Give pensioners and low-income groups some breathing room during a difficult economic period.
While the government has not announced further direct payments beyond this installment, local councils will continue to run support schemes such as the Household Support Fund.
Additional Support Available
Alongside the cost-of-living payment, households may also benefit from:
-
Winter Fuel Payments for pensioners.
-
Warm Home Discount for eligible households.
-
Cold Weather Payments, triggered during freezing conditions.
-
Council Tax Reductions and local authority grants.
These combined measures ensure the most vulnerable continue to receive help even after the cost-of-living payment scheme ends.
FAQs
Who will receive the final £500 cost-of-living payment in Autumn 2025?
Anyone on means-tested benefits such as Universal Credit, Pension Credit, or tax credits during the qualifying period.
Do I need to apply for the payment?
No. It is issued automatically to eligible households.
When will the payment arrive?
Most people will receive it between October and November 2025.
How will I know it has been paid?
It will show in your bank statement with the reference “DWP COLP” or “HMRC COLP”.
Is this the last cost-of-living payment?
Yes. The £500 Autumn 2025 installment is the final scheduled payout under the current scheme.
Click here to know more.