UK Government Confirms £725 Cost of Living Payment for October 2025 – Are You Eligible?

The UK government has officially confirmed that millions of households will receive a £725 Cost of Living Payment in October 2025. This one-off payment is designed to help low-income families, pensioners, and vulnerable citizens deal with rising prices and economic pressures. As inflation and energy costs continue to strain budgets, this payment aims to offer some much-needed financial relief to struggling households.

If you live in the UK and receive certain benefits, you could be eligible for this support. Here’s everything you need to know — from eligibility and payment dates to how to claim and what to expect next.

What is the £725 Cost of Living Payment?

The £725 Cost of Living Payment is part of the UK government’s plan to help citizens cope with the ongoing cost-of-living crisis. It will be provided as a tax-free, one-off payment directly to eligible individuals through their usual benefit or pension account.

The government introduced similar payments in 2023 and 2024, and due to continued inflation and energy price pressures, it has decided to extend this scheme into 2025. The goal is to ensure that those on lower incomes can continue to afford essential goods such as food, rent, and utilities.

Who Will Receive the £725 Payment?

Eligibility for the payment will depend on the type of benefit or support you currently receive. Typically, the payment will go to people receiving means-tested benefits or tax credits.

Here’s a list of benefits that could make you eligible:

  • Universal Credit
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Pension Credit

If you’re receiving any of these benefits between August and September 2025, you’ll likely qualify automatically for the payment.

Will Pensioners Get the Payment Too?

Yes, pensioners will also be eligible under certain conditions. Those who receive Pension Credit will automatically qualify for the £725 payment. Additionally, many older citizens who receive Winter Fuel Payment may get an additional top-up, depending on their circumstances.

The government has confirmed that pensioners struggling with rising heating costs will receive extra winter support alongside this new payment.

When Will the £725 Payment Be Paid?

The Department for Work and Pensions (DWP) has announced that payments will be made from mid-October 2025, with most recipients expected to receive the money by the end of the month.

Payments will be sent out in batches, so the exact date may vary depending on your benefit type and banking provider. For those receiving tax credits from HMRC, the payment may arrive a few days later than those paid by the DWP.

How Will the Payment Be Made?

You don’t need to apply for the £725 Cost of Living Payment. If you are eligible, it will be paid automatically into the same bank account where you receive your benefits or pension.

The payment will appear in your bank statement with a reference like “DWP COL” or “HMRC COL Payment”, making it easy to identify.

What If You Don’t Receive the Payment?

If you believe you’re eligible but don’t receive the payment by the end of October 2025, you should:

  1. Wait at least one week after the final payment date.
  2. Contact the DWP or HMRC helpline to report the missing payment.
  3. Double-check that you were receiving the qualifying benefit during the eligibility period.

It’s also important to make sure your bank details and personal information are up to date with the DWP or HMRC to avoid delays.

Can You Get This Payment If You Work?

Yes, you can still receive the £725 payment if you are working — as long as you qualify for one of the eligible benefits such as Working Tax Credit or Universal Credit. The scheme is designed to support working individuals and families who are on low incomes and facing higher living costs.

What About Disability Benefits?

At this stage, the £725 payment is separate from any disability-related support. However, the government has hinted that additional disability cost-of-living payments may be announced later in 2025.

Those who receive Disability Living Allowance (DLA), Personal Independence Payment (PIP), or Attendance Allowance might qualify for further financial help in the upcoming months.

Will the Payment Affect Your Other Benefits?

No, the £725 Cost of Living Payment will not affect your benefit entitlement or tax status. It will not count as income and won’t impact the amount you receive from Universal Credit, Pension Credit, or any other benefit.

This ensures that the support reaches the people who need it most, without reducing their regular benefits.

How the Payment Helps Families

The ongoing cost-of-living crisis has left many households struggling to pay for essentials. Food prices, energy bills, and rent have all gone up significantly in recent years.

The £725 payment is intended to provide immediate financial relief — helping families to manage their expenses, reduce debt, and stay on top of their bills as the winter season approaches.

For many parents, it could mean being able to buy school uniforms, groceries, or pay heating bills that have nearly doubled since 2022.

Government’s Statement on the Payment

A spokesperson for the UK government said that this payment is part of a “continued commitment to protect the most vulnerable households.” The government aims to balance short-term relief with long-term strategies to tackle inflation and improve living standards.

The DWP has also confirmed that this payment is fully funded and secured, meaning there’s no risk of cancellation or delay due to budget changes.

Could There Be More Payments After 2025?

While the government has not officially confirmed future payments, several analysts believe similar support could continue in 2026 if economic challenges persist.

With inflation still above target and energy prices fluctuating, additional help for low-income families might be considered in the next fiscal year’s budget.

How to Prepare for the Payment

If you believe you’re eligible for the £725 payment, here are a few steps you can take to ensure you receive it smoothly:

  • Make sure your benefit or pension claim is active.
  • Update your personal details with DWP or HMRC if you’ve changed your address or bank account.
  • Keep track of official government updates through GOV.UK or DWP channels.

Avoid Scams and Fake Messages

Be cautious of text messages, emails, or calls claiming to offer cost-of-living payments. The government will never ask for your personal details or bank information to process these payments.

If you receive a suspicious message, report it immediately to Action Fraud or the National Cyber Security Centre (NCSC).

Final Thoughts

The £725 Cost of Living Payment for October 2025 is a vital measure to help millions of UK households navigate the ongoing financial challenges. Whether you’re on Universal Credit, Pension Credit, or Tax Credits, this payment could offer meaningful support to help ease everyday expenses.

As prices remain high and families prepare for the winter months, this one-off payment provides both financial relief and reassurance that the government continues to support those most affected by the cost-of-living crisis.

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