In recent years, the UK government has offered vital financial support to millions of low-income families through its Cost of Living Payments. These payments helped many cope with inflation-driven hikes in food, rent, and energy costs. One notable support came in the form of the £326 Cost of Living Payment, which was part of a broader initiative between 2022 and 2024. As costs rose sharply across the country, these payments served as lifelines for households relying on income-based benefits.
While these payments made a significant impact, it’s now confirmed that there will be no new Cost of Living Payments in 2025. However, understanding the timeline and process behind the £326 Cost of Living Payment is still helpful—especially for those reviewing past entitlements or exploring other available support in 2025. In this article, we’ll explain how the payment was made, who was eligible, and what alternative help remains available this year.
£326 Cost of Living Payment: How and When It Was Paid
The £326 Cost of Living Payment was introduced to help families on means-tested benefits during one of the most financially challenging periods in recent UK history. Delivered by the Department for Work and Pensions (DWP), it was part of a series of payments issued to cushion the blow of rising household expenses. The payment was automatically made to eligible individuals, meaning no application was necessary. It was non-taxable and had no effect on existing benefits.
Those who qualified included recipients of Universal Credit, Pension Credit, Income-based JSA or ESA, Income Support, and some Tax Credits. The funds were sent directly into claimants’ regular benefit accounts.
Overview Table: £326 Cost of Living Payment Summary
| Detail | Information |
| Payment Amount | £326 |
| Eligible Groups | Means-tested benefit recipients (e.g., UC, JSA, ESA, Income Support, PC) |
| Payment Authority | Department for Work and Pensions (DWP) |
| Application Needed? | No – paid automatically |
| Taxable? | No – non-taxable |
| Impact on Existing Benefits | None – did not affect benefit eligibility or amounts |
| How It Was Paid | Direct bank deposit to benefit-linked accounts |
Recap: What Were the Cost of Living Payments?
Between 2022 and 2024, the government rolled out several financial support packages. The £326 Cost of Living Payment was one of the early installments under this scheme. These payments were made to support households who depended on state benefits and were struggling with essential costs like rent, groceries, heating, and childcare.
These payments were simple and automatic. Eligible individuals did not need to apply; instead, the DWP verified benefit records and deposited the payment directly into their bank accounts. The simplicity of the process helped millions access support without unnecessary delays.
No New Cost of Living Payments in 2025
In May 2025, the government announced there would be no new DWP Cost of Living Payments for the year. This confirmed that anyone expecting a similar June 2025 installment would not receive one. This decision came despite continued financial pressure on households due to ongoing inflation and high energy costs.
While this has disappointed many, the government emphasized that other forms of support remain available. The focus has shifted to more targeted, local, or needs-based schemes, which can still offer significant help if accessed in time.
Alternative Support Schemes Still Available
Although the £326 Cost of Living Payment won’t return in 2025, several schemes are still active:
1. Household Support Fund (HSF)
Extended until March 2026, this fund is distributed through local councils. Support includes cash assistance, food vouchers, and energy aid. For example, some councils may offer up to £125 in support, depending on local funding and demand.
2. Energy Bill Assistance Programs
- Warm Home Discount Scheme: Provides a one-time £150 discount on electricity bills for qualifying low-income households.
- ECO4 Scheme: Supports home energy efficiency improvements to reduce long-term utility costs.
These programs can ease energy bills without needing new government payments.
3. £150 Disability Cost of Living Payment
Although general Cost of Living Payments have paused, a £150 one-off payment will still be made in June 2025 for those receiving certain disability benefits such as:
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
This payment will also be sent automatically, requiring no application.
What to Do If You Missed the £326 Payment
If you believe you were eligible for the £326 Cost of Living Payment in a past year but didn’t receive it, here are a few steps you can take:
- Verify Your Eligibility Period: Check whether you were receiving qualifying benefits during the correct dates in 2022 or 2023.
- Review Your Bank Details: Ensure the DWP had the correct account information on file at that time.
- Contact DWP: You may still be able to inquire about missed payments through the official helpline or online portal.
While new claims aren’t accepted, reporting a missed payment from a prior eligible period could lead to a resolution.
Helpful Resources
Navigating benefit support can be complex. Here are trusted sources to guide you:
- GOV.UK – The government’s official website provides full details about benefits and schemes.
- Citizens Advice – Free, confidential support for those needing help understanding eligibility or managing finances.
- Local Councils – Councils administer the Household Support Fund and other targeted help.
Conclusion
While there will be no new £326 Cost of Living Payment in 2025, past support programs like this made a major difference for millions of households during challenging times. Those payments, including the one in focus here, were automatic, non-taxable, and did not affect other benefits—making them a powerful form of relief.
Though that chapter has ended, the government still offers important aid through the Household Support Fund, energy bill schemes, and disability-focused support. If you’re currently in need, don’t hesitate to contact your local council, check GOV.UK, or speak with Citizens Advice to find out what you can still access in 2025.
FAQs
1. Who was eligible for the £326 DWP Cost of Living Payment?
People receiving income-based benefits like Universal Credit, Pension Credit, Income Support, JSA, or ESA.
2. Did I need to apply for the £326 payment?
No. It was paid automatically if you met the eligibility requirements during the qualifying period.
3. When was the £326 payment usually made?
Most payments were processed within weeks of confirming benefit status.
4. How were the payments made?
They were deposited directly into the bank accounts tied to your benefit claims.
5. Did these payments affect my other benefits?
Not at all. The payments were tax-free and did not reduce or impact your other entitlements.
