There are no new official cost of living payments scheduled for next year, but there are other cost of living support schemes you can get help from – here we have rounded up all the help you can get throughout 2025
The cost of living in 2025 is set to remain a struggle for millions of families – so will there be any help for households next year?
For the last few years, cost of living support has become the norm after inflation and energy bills skyrocketed. In 2022, official cost of living support was launched, with the government paying eight million households two payments over the year totalling £650. With inflation remaining high going into 2023, a second round of three payments was made.
These ran until February 2024 and totalled £900. Extra cost of living payments were also given to pensioners and those claiming disability benefits. There are no new official cost of living payments scheduled for next year, but there is other support you can get. Some of these schemes are run by household bill suppliers, others by local councils, and some are official government schemes run by arms such as the Department for Work and Pensions (DWP).
Household Support Fund
In September, Labour extended the Household Support Fund scheme for another six months until March 2025. Introduced by the Tory Government in October 2021, the scheme provides local councils with funding which can be used to offer support to those most struggling with the cost of living.
The amount of money given to each authority depends on the size and population of the area, with larger, more densely populated areas receiving more cash to spend. You can only receive support from your local council, and each area decides how to spend its funding.
This means it can be a postcode lottery on the support you can get. Over the last few years, the help provided by councils has ranged from free cash payments, council tax discounts, and supermarket and energy vouchers. The funding has also been given to food banks, heating hubs, and other local organisations.
Councils have previously allocated support to “vulnerable households” which usually meant just those claiming certain benefits. However, many councils have widened their scope, and anyone classed as “struggling” can claim the help. Each council will have a different application process for the scheme. Some ask you to apply online, while others ask you to do so over the phone. Some councils are also reaching out to those eligible directly. Your local council will provide details on the support it is currently offering on its website. Labour has not confirmed any plans to extend the scheme further as of writing.
Energy hardship schemes
If you speak to your supplier, you may be offered or told to apply for support through its energy hardship scheme. The majority of the UK’s biggest energy firms, such as British Gas, EDF, Octopus Energy, E.ON, and Ovo, offer help through grants to those struggling to pay their bills.
British Gas offers help to both customers and non-customers through grants of up to £2,000 to help with energy debt through its British Gas Energy Support Fund and its Individuals and Families Fund. Other energy suppliers offering support to its customers include Octopus Energy, EDF, E. On Next, and Ovo Energy.
Exact eligibility requirements vary – for example, some say you need to be in receipt of certain benefits – and you normally need to have spoken to a debt advisor first. Get in contact with your energy supplier to see if it has a hardship fund available.
Help with water bills
Water companies in the UK – like energy suppliers – offer support to those who are struggling to pay their bills. Most water companies have a social tariff scheme for customers on low incomes or for those receiving certain DWP benefits. Again the support offered is different depending on the water firm you have. It’s also important to note that you are unable to swap your water provider so you will only be able to claim help from the supplier you are with.
If you have a water meter and you claim certain benefits – such as Universal Credit, Housing Benefit, or Pension Credit – or have a medical condition which requires you to use a lot of water you may be eligible for the WaterSure scheme. Under the scheme, your bill is capped at a lower amount, regardless of how much water you use.
You can apply for WaterSure by filling out a form from your water company. You will need to supply evidence that you qualify, such as a copy of your awards notice for a benefit. You’ll also need to provide evidence of your medical condition from your doctor, including how the condition is treated and the effect it has on how much water you use.
Help with phone and broadband
A number of broadband and phone suppliers offer packages called “Social Tariffs” which are cheaper than their normal ones. These packages are offered to those who claim certain DWP benefits. Some providers call them “essential” or “basic” broadband. You can check Ofcom’s social tariffs information on who could qualify, how to apply and find the full list of broadband and phone social tariff packages.
Government help schemes
Warm Home Discount
The Warm Home Discount is a one-off payment of £150 that is taken off your electricity bill or added to your prepayment meter over the winter months. If your electricity supplier is part of the Warm Home Discount scheme, you will receive the payment automatically. To qualify, the bill payer must be on a low income with high energy costs or get the guarantee credit element of pension credit. The scheme is open from October until March, and those eligible will be contacted by their energy supplier soon.
Winter Fuel Payment
The Winter Fuel Payment is an annual one-off tax-free payment of either £200 or £300 for pensioners who are claiming Pension Credit or other eligible benefits. The amount you get is dependent on your specific circumstances, such as if you live alone or with a partner.
Cold Weather Payments
Cold Weather Payments, worth £25, are paid by the DWP when an area of the UK experiences or is forecast to experience temperatures of under zero degrees for seven consecutive days. The scheme runs from November 1 to March 31 in England, Wales, and Northern Ireland, and to be eligible you must claim the following benefits:
- Pension credit
- Income support
- Income-based jobseeker’s allowance
- Income-related employment and support allowance (ESA)
- Universal Credit
- Support for mortgage interest (SMI)
Those receiving income support or income-based jobseeker’s allowance can get cold weather payments if they have a disability or pensioner premium, a child who is disabled, a child tax credit that includes a disability element, or a child under five living with them. Scotland got rid of the cold weather payment and replaced it with a new Winter Heating Payment, and unlike the cold weather payment, the Scottish payment does not depend on how cold the temperature gets. It’s a yearly payment of £58 that’s paid automatically to those who are eligible. Next year’s payment will be even higher as it rises with inflation each year.
