Cost of Living Grant: Cost of Living Payments were additional cash payments introduced by the UK government between 2022-2024 to help households cope with rising energy bills and inflation during the cost of living crisis. These payments were issued by the Department for Work and Pensions (DWP), HM Revenue and Customs (HMRC), and the Ministry of Defence to recipients of certain benefits and tax credits throughout the UK. The payments were automatic, meaning eligible people received them directly into their bank accounts without needing to apply.
Who Issued These Payments
The Department for Work and Pensions (DWP) was the primary issuer for most Cost of Living Payments, particularly for those on means-tested benefits like Universal Credit, Pension Credit, and legacy benefits. HM Revenue and Customs (HMRC) handled payments for people receiving tax credits, while the Ministry of Defence managed payments for military personnel receiving qualifying benefits. The payments were designed to reach different vulnerable groups including low-income families, pensioners, and disabled people.
Current Status of the Scheme
As of 2025, the government has officially ended the Cost of Living Payment scheme, with DWP stating “there will be no Cost of Living Payment for 2025 and there are no more payments planned in the future.” The emergency support program concluded after successfully distributing billions of pounds to millions of households during the peak of the cost of living crisis between 2022-2024.
Today in this article we will discuss about UK Pensioners to Receive £725 Cost of Living Grant with facts.
Important Update: Recent claims about a £725 cost of living payment for UK pensioners in 2025 are not supported by official government sources. Here’s what you need to know about the current situation.
Official Government Position on Cost of Living Payments
The Department for Work and Pensions (DWP) has officially confirmed that no new Cost of Living Payments are planned for 2025. A note on the official government website dated May 6, 2025 stated: “DWP are not planning to make any more Cost of Living Payments.”
This marks the end of the emergency support scheme that ran from 2022 to 2024, during which millions of households received financial assistance ranging from £150 to £650.
What Happened to Previous Cost of Living Payments
Between 2022 and 2024, the government distributed substantial support to help households cope with rising energy costs and inflation. Over 8 million pensioner households received a Pensioner Cost of living Payment of £300 alongside their Winter Fuel Payment in 2022/23, and a similar number received the payment in 2023/24.
The final £299 Cost of Living Payment was sent out in February 2024, bringing an end to a support scheme that began in 2022.
Current Support Available for Pensioners in 2025
While no new lump-sum cost of living payments are planned, several forms of government support remain available for pensioners:
Winter Fuel Payments
Winter Fuel Payments, worth £200 or £300 per household depending on age, are now limited to people getting Pension Credit or certain other means-tested benefits. This represents a significant change from previous years when all pensioners were eligible.
Pension Credit
Pension Credit remains a crucial gateway to various benefits and discounts. There are various schemes and concessions Pension Credit acts as a gateway to, including help with NHS costs, free TV licences for people aged 75 and over, and the Warm Home Discount Scheme.
Household Support Fund
£742 million has been allocated to English local authorities for the Household Support Fund for 2025/26, with additional funding for the devolved governments through the Barnett formula to use at their discretion. This fund allows local councils to provide discretionary support to those most in need.
Why the Government Ended Cost of Living Payments
This decision aligns with the government’s broader welfare reform efforts, including the phasing out of legacy benefits in favour of Universal Credit and the introduction of stricter eligibility criteria for certain disability benefits.
With inflation easing to under 3%, the government says one-off emergency payments are no longer necessary.
Alternative Support Available
Instead of lump-sum payments, the government has introduced other measures:
- Benefit Increases: A 1.7% rise in benefits like Universal Credit, ESA, and Income Support
- Debt Relief: A reduction in the UC debt deduction cap from 25% to 15%, allowing households to keep up to £420 more per year
- Warm Home Discount: Eligible households can receive discounts on energy bills
Beware of Misinformation
Many unofficial websites are currently spreading false information about £500, £650, and £725 cost of living payments for 2025. These claims are not supported by official government sources and may be part of scam attempts.
Red flags to watch for:
- Claims about automatic payments not confirmed by official government sources
- Requests for personal or banking information
- Unofficial websites making payment promises
What Pensioners Should Do
- Check Pension Credit eligibility: Many pensioners miss out on Pension Credit, which unlocks access to other benefits
- Apply for Winter Fuel Payments: If you receive Pension Credit, ensure you’re getting your Winter Fuel Payment
- Contact your local council: Ask about Household Support Fund assistance
- Stay informed through official channels: Only trust information from GOV.UK and official DWP communications
The Bottom Line
Currently, there is no £725 one-off cost of living support payment planned for UK pensioners in 2025. The government has officially ended the emergency cost of living payment scheme, focusing instead on long-term welfare reforms and targeted support through existing benefit systems.
Pensioners struggling with costs should explore available support through Pension Credit, local authority help, and other established benefit schemes rather than waiting for payments that are not coming.
For the most up-to-date information, always check the official GOV.UK website or contact the DWP directly.
