UK Co t of Living Payment: Statu and 2026 Change

The era of lump-sum cost of living payments has ended, but the April 2026 benefit uprating will bring modest increases to millions of households. This article explains what happened, who qualified, and what the changes mean for your finances.

First 2023-24 payment amount: £301 ·
Total maximum per household (2022–2024): £1,350 ·
Payments ended: February 2024 ·
Eligible households (est.): Over 8 million ·
Next benefit uprating date: April 2026

Six key facts from the scheme tell the story of what was paid and who benefited.

Is the UK getting another cost of living payment?

What was the cost of living payment?

• The cost of living payment was a series of one-off lump sums sent automatically to low-income households on qualifying benefits between July 2022 and February 2024.
• It was part of a £37 billion government support package to help with soaring energy and food prices.
• Payments ranged from £299 to £326 per instalment, with a maximum total of £1,350 per household across the whole scheme (GOV.UK guidance).

When did the payments end?

• The final cost of living payment of £299 was issued in February 2024 to Universal Credit and tax credit recipients.
• GOV.UK explicitly states there are no more payments planned and the scheme has permanently closed (GOV.UK cost of living portal).
• No new round of cost of living payments has been announced for 2026.

Will there be a new payment in 2026?

• As of now, the government has not announced any new cost of living payment for 2026.
• Instead, the primary mechanism for financial support will be the annual benefit uprating in April 2026, where Universal Credit, Pension Credit, State Pension, and other working-age benefits are expected to increase in line with inflation.
• Some campaigners, including Scope charity, have called for renewed targeted payments if energy prices spike again, but no official commitment exists.

The implication: households that relied on the lump-sum payments need to plan for a shift from one-off help to ongoing uprating – which means smaller monthly increases rather than a big cheque.

Who is eligible for UK cost of living payment?

Which benefits qualify?

• Eligibility for the 2022–2024 payments depended on being entitled to at least one of the following during specific qualifying periods: Universal Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Pension Credit, Child Tax Credit, or Working Tax Credit (GOV.UK eligibility details).
• Even if your benefit was as low as 1 penny during the qualifying period, you still qualified – unless your benefit was reduced to £0 due to a sanction.

Am I eligible if I receive PIP?

• Personal Independence Payment (PIP) recipients were not eligible for the main cost of living payment, but they did qualify for a separate disability cost of living payment of up to £300 (reportedly £150 per payment in 2023) (GOV.UK guidance).
• If you received PIP and also a qualifying means-tested benefit, you could get both payments.

Am I eligible if I receive Universal Credit?

• Yes – Universal Credit recipients were among the largest group of beneficiaries. Payments were sent automatically to people who were entitled to UC for any day within the specified qualifying periods.
• The last qualifying period for the final £299 payment included 13 November 2023 to 12 December 2023 for Universal Credit (GOV.UK payment schedule).

Are pensioners eligible?

• Pensioners on Pension Credit qualified for the main cost of living payment.
• There was also a separate £300 payment per household for pensioner households in winter 2023–2024, linked to the Winter Fuel Payment.
• Pensioners not on Pension Credit did not receive the main payment.

What this means: eligibility was tightly linked to being on a specific benefit at a specific date – not income level alone. The scheme has ended, so no new households can join.

When will the cost of living payment be paid?

What were the 2023-2024 payment dates?

• Spring 2023: £301 (paid from 25 April 2023 for most benefit recipients, 2–9 May 2023 for tax credit recipients).
• Autumn 2023: £300 (paid from 31 October to 19 November 2023 for Universal Credit, and separately for other benefits).
• Spring 2024: £299 (final payment, paid from 6 February to 22 February 2024 for most Universal Credit recipients) (GOV.UK payment dates).

Will there be any future payments?

• No. The Department for Work and Pensions (DWP) has confirmed the scheme is closed.
• Any new support would likely come through uprating or a new programme, not an extension of the cost of living payment.

When is the next benefit uprating?

• The next scheduled uprating for most working-age benefits and State Pension is April 2026.
• The exact percentage increase will be announced in the 2025 Autumn Budget, based on the September 2025 Consumer Prices Index (CPI) inflation rate.
• Tax credit thresholds and personal tax allowances may also be adjusted in the same timeframe.

The catch: without a lump-sum payment, households that saw a big boost from the earlier scheme now face a slower, incremental increase – affecting how much they can absorb in one go.

How to apply for cost of living payment?

Was the payment automatic?

• Yes – all cost of living payments were automatic. If you were on a qualifying benefit during the eligibility window, you received the payment without having to do anything (GOV.UK – no application needed).
• There was no application form, no online portal, and no phone line to request a payment.

Do I need to contact DWP?

• In most cases, no. The payment was sent via the same method as your usual benefit or tax credit (e.g., bank account linked to Universal Credit).
• If you believe you were eligible but did not receive it, you should first check the qualifying dates and benefit entitlement on your account, then contact DWP or HMRC depending on your situation. Citizens Advice recommend reporting any missing payment.

What if I didn’t receive it?

• Report it online via GOV.UK or call the relevant helpline. Be aware of scams: official sources never ask for bank details via text or email.
• The deadline for reporting missing payments for the 2023-24 scheme has now passed (usually 90 days after the payment window).

The trade-off: automatic payments were convenient, but they also meant some eligible people missed out if they didn’t realise they qualified – and now it’s too late to claim.

What is going up in April 2026?

Which benefits are being uprated?

• Universal Credit, Pension Credit, State Pension, income-based JSA, income-related ESA, and most other working-age benefits are expected to increase in April 2026.
• Disability benefits like Personal Independence Payment (PIP) and Disability Living Allowance are also typically uprated annually.

How much will Universal Credit increase?

• The exact percentage hasn’t been confirmed. It will depend on the September 2025 CPI figure.
• Based on current inflation trends (around 2–3%), the standard allowance for a single person over 25 – currently £393.45 per month – could rise by about £8–12 per month.

Will tax thresholds change?

• The personal tax allowance (currently £12,570) is frozen until April 2028 under current plans, but the government could adjust it in the 2026 Budget.
• National Insurance thresholds may also be updated. Any changes would be announced in the 2025 Autumn Budget.

Why this matters: for the first time since 2022, households will not see a separate cost of living payment. Instead, the 2026 uprating will boost monthly incomes slightly – but the total annual lift will be far less than the lump sums of £1,350 that eligible households received in 2022–2024.

The end of the cost of living payment scheme marks a major shift in how UK households receive financial support during high inflation. The government has chosen to replace lump-sum emergency payments with ongoing benefit uprating and potential tax changes, meaning the support is less visible but theoretically more sustainable. For the over 8 million households who received the payments between 2022 and 2024, the implication is clear: budget for smaller, incremental increases rather than waiting for another one-off cheque, or risk falling behind if energy and food costs spike again.