Cost of living payments explained

The UK government’s Cost of Living Payments were one-off cash payments to help households with rising energy and food bills. They ran between 2022 and 2024 and went automatically to people on certain benefits. The scheme has now ended — here’s what it was, who got it, and what help still exists.

What the payments were

The package was made up of several payments to different groups:

• £900 in three payments for people on means-tested benefits (Universal Credit, Pension Credit, and others)
• £300 for pensioner households on top of their Winter Fuel Payment
• £150 for people receiving qualifying disability benefits
• £150 Council Tax rebate for most homes in England

In total an eligible household could receive up to £1,350.

Who qualified

The payments went to people who were, at the qualifying dates, receiving benefits such as:

• Universal Credit
• Income Support
• Income-based Jobseeker’s Allowance or Employment and Support Allowance
• Pension Credit
• Tax credits (Child Tax Credit or Working Tax Credit)
• Qualifying disability benefits (PIP, DLA, Attendance Allowance and similar)

You never had to apply — the Department for Work and Pensions made the payments automatically to the account your benefits are paid into. This also meant scammers targeted the scheme: the government never asked for a fee, a password, or your bank details to arrange a payment.

Why the payments happened

Between 2021 and 2023, energy prices and inflation rose sharply, pushing the cost of heating, food and transport up faster than incomes. The payments were a targeted response to that spike, aimed at the households most exposed to rising costs.

What help is available now

The one-off scheme has ended, but permanent and ongoing support still exists. Depending on your situation you might be able to claim:

• Pension Credit — even a small amount can unlock other help, including the Winter Fuel Payment and council tax discounts
• Universal Credit — for people on low incomes, including in-work households
• Council Tax Reduction — a discount on your council tax if you’re on a low income
• Warm Home Discount — a discount on your electricity bill for eligible households
• Household Support Fund — local council grants for food, energy and essentials (availability varies by area)
• Help with energy bills — grants and schemes offered by energy suppliers, such as the Energy Company Obligation (ECO) scheme

The single best first step is a benefits calculator on GOV.UK — you enter your income, savings and circumstances and it shows what you’re entitled to. Many households qualify for support they never claim.

What a cost of living calculator actually does

It’s a common mix-up: the government’s Cost of Living Payments were cash support, while a cost of living calculator is a budgeting tool that adds up your monthly essential spending. Use our cost of living calculator to see your rent or mortgage, bills, food, transport and insurance as one figure — then compare it against your income to find the gap, and use the budget calculator to close it.

The bottom line

The Cost of Living Payments were a temporary, automatic cash top-up that has now ended. If money is still tight, the long-term support is in the benefits system — Pension Credit, Universal Credit and local council schemes — rather than one-off payments. Check what you’re entitled to, then build a budget that works for your actual costs.