Cost of Living Payment for people on Universal Credit
The Cost of Living Payment has been one of the most significant government measures to support households during the past years of inflation and rising bills.
For many people who receive Universal Credit, this support has represented more than money — it has meant relief, recognition, and stability.
But how did it work, who qualified, and what’s the current situation?
Here’s everything you need to know about the Cost of Living Payment for Universal Credit claimants.
What Was the Cost of Living Payment Scheme?
Introduced in 2022, the Cost of Living Payment was a direct financial support program designed by the Department for Work and Pensions (DWP) to help households cope with increased living costs — especially energy and food.
It targeted people receiving means-tested benefits, including Universal Credit, Pension Credit, Income Support, and Tax Credits.
The scheme continued through 2023–2024, with three main instalments totaling £900 for those eligible.
Each payment was automatic, meaning no application or claim was required.
If your records showed that you were entitled to Universal Credit during a specific qualifying period, the payment was sent directly to your bank account — usually under the reference “DWP COLP”.
Eligibility for Universal Credit Recipients
Eligibility depended on one key factor: entitlement during the qualifying period.
That means if you were receiving Universal Credit for an assessment period that ended within the official qualifying dates, you were automatically eligible.
These dates were set by the DWP for each instalment.
For example:
| Payment | Amount | Assessment Period End Date | Payment Window |
|---|---|---|---|
| 1st Instalment | £301 | Between 26 Jan – 25 Feb 2023 | 25 Apr – 17 May 2023 |
| 2nd Instalment | £300 | Between 18 Aug – 17 Sep 2023 | 31 Oct – 19 Nov 2023 |
| 3rd Instalment | £299 | Between 13 Nov – 12 Dec 2023 | 6 – 22 Feb 2024 |
If you were entitled to Universal Credit in those timeframes, you were included.
However, if your payment was reduced to £0 due to income, savings, or sanctions, you might not have qualified — unless the reduction happened for specific reasons such as housing deductions or hardship adjustments.
Amounts and How the Payment Was Made
For Universal Credit claimants, the Cost of Living Payment totalled up to £900, split across three instalments between 2023 and early 2024.
It was:
- Tax-free,
- Automatic (no claim required),
- Unaffected by other benefits, and
- Paid to the same account where you normally receive Universal Credit.
The DWP and HMRC handled all processing electronically — meaning that your eligibility was verified through their systems.
Once approved, the payment was sent without you needing to take any action.
What Happens Now – 2025 and the Current Status
As of 2025, there is no new national Cost of Living Payment announced for Universal Credit recipients.
The GOV.UK official guidance confirms that the main scheme ended after the 2023–2024 cycle.
However, support hasn’t disappeared — it’s just changed form.
People on Universal Credit can still access several cost-of-living supports:
- 🏠 Household Support Fund: Managed by local councils to help with energy, food, and essential bills.
- ❄️ Cold Weather Payment: £25 for each 7-day cold period between November and March.
- 💡 Energy efficiency and fuel discounts for low-income households.
- 💷 Council Tax Reduction Schemes for those on low incomes.
- 📞 Budgeting Advances through Universal Credit for urgent financial needs.
For updates, always visit the official site:
👉 https://www.gov.uk/guidance/cost-of-living-payment
What to Do If You Think You Should Have Received It
If you believe you met the criteria but didn’t receive your payment, you can take the following steps:
1️⃣ Check your assessment period — verify whether your Universal Credit entitlement matched the qualifying dates.
2️⃣ Look at your bank statement — payments appear as “DWP COLP” or similar references.
3️⃣ Contact the DWP or Universal Credit helpline:
- 📞 Telephone: 0800 328 5644
- 🔇 Textphone: 0800 328 1344
- ♿ Relay UK: Dial 18001 + 0800 328 5644
- 🌐 https://www.gov.uk/universal-credit/contact-universal-credit
4️⃣ Provide verification details: National Insurance number, benefit type, and recent UC payment information.
5️⃣ Report a missing payment: Use the GOV.UK portal to submit an enquiry if your record shows you were eligible but unpaid.
6️⃣ Be cautious of scams: The DWP will never send text messages or emails asking for personal banking details.
❓FAQ – Cost of Living Payment for Universal Credit
1️⃣ Did I need to apply to get the Cost of Living Payment?
No. Payments were automatic for eligible Universal Credit recipients.
2️⃣ Can I get it if my UC payment was £0 that month?
Usually no, unless the £0 was due to deductions for housing or hardship support.
3️⃣ How will I know if I received it?
Check your bank statement for “DWP COLP” or review your UC account for payment notices.
4️⃣ Who do I contact if I believe my payment is missing?
Call the Universal Credit helpline (0800 328 5644) or use the GOV.UK report form.
5️⃣ Is there a Cost of Living Payment for 2025?
Not at present — no new national payment has been announced. Support continues through local and council-level programs.