Rumours of a new £500 cost of living payment have sparked confusion across the UK, with many questioning whether such financial support is legitimate.
As households continue to navigate high living costs, misinformation can quickly gain traction online.
This article examines the origins of the £500 payment claim, clarifies the official position from the UK Government and the Department for Work and Pensions (DWP), and provides accurate guidance on what financial support is genuinely available in 2025.
What is the £500 Cost of Living Payment Rumour All About?
In early 2025, numerous messages and posts began circulating online claiming that the UK Government or the Department for Work and Pensions (DWP) would issue a new £500 cost of living payment.
These messages appeared on platforms like Facebook, TikTok, and WhatsApp, often shared in community groups and private chats.
These messages typically claimed that people receiving Universal Credit or other benefits could expect a one-off £500 payment in response to ongoing financial pressures.
In most cases, these claims were not backed by official sources or government publications.
The rumours followed a similar pattern seen in previous misinformation campaigns:
- Claims often featured urgent or emotional language, such as “Apply now before it’s too late.”
- Some included links to unofficial websites mimicking the GOV.UK layout.
- Posts usually lacked credible references or links to official government announcements.
As these claims spread, confusion grew, especially among those struggling with household bills and rising food prices. However, multiple fact-checking bodies and government spokespersons confirmed that there was no such payment planned.
Has the Government or DWP Announced a £500 Payment?
The UK Government has not announced any £500 cost of living payment. In fact, both the DWP and official government communications have stated that there are no plans for further cost of living payments in 2025.
Official government statements regarding benefits and financial support are only published through:
- The GOV.UK website
- Verified DWP social media accounts
- Accredited national news outlets such as the BBC or ITV News
To date, there is no listing of a £500 payment on any government platform. When questioned, DWP representatives reiterated that the cost of living payment scheme had ended and that no new support packages were in the pipeline.
This clarification is vital, as previous cost of living payments were widely publicised with confirmed payment dates, eligibility requirements, and official guidance.
The complete absence of such details for the alleged £500 payment makes it clear that the rumour lacks credibility.
What Were the Actual Cost of Living Payments in 2023/2024?
The last series of official cost of living payments was part of the UK Government’s financial support package for eligible households.
These payments aimed to cushion the impact of inflation, high energy prices, and the ongoing cost of living crisis.
Below is a table outlining the confirmed cost of living payments during the 2023/2024 financial year:
| Instalment | Payment Amount | Payment Window | Benefits Required |
| First | £301 | 25 April to 17 May 2023 | Universal Credit, Income Support, etc. |
| Second | £300 | 31 October to 19 November 2023 | Same as above |
| Final | £299 | 6 February to 22 February 2024 | Same as above |
All these payments were made automatically to eligible recipients and did not require any application. The total financial support through this scheme amounted to £900 per eligible household.
Eligibility was generally based on receiving means-tested benefits such as:
- Universal Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit or Child Tax Credit
- Pension Credit
No part of this package included a £500 payment. The final instalment of £299 marked the end of the Government’s scheduled cost of living support initiative.
Are Any New Cost of Living Payments Planned for 2025?
At the time of writing, there are no new cost of living payments scheduled for 2025. The Government has clearly communicated that the 2023/2024 support programme was a time-limited response to the inflation crisis and energy price surge.
Several statements made in late 2024 confirmed the end of the scheme:
- The DWP declared that the final £299 payment was the last instalment.
- Budget statements by the Chancellor in 2024 did not mention any new direct cost of living payments.
- The GOV.UK guidance on support for households has not been updated with new payment announcements.
Instead, the Government is focusing on ongoing support systems, such as:
- Adjustments to benefit thresholds and rates
- Localised support schemes managed by councils
- Broader economic interventions to manage inflation
This shift signals a move away from large-scale, one-off payments like those issued during the height of the crisis in 2022 and 2023.
How Can You Spot a Fake Cost of Living Payment Message?
As the £500 rumour continues to circulate, recognising a scam or fake message has become crucial.
Fraudulent information can spread rapidly and exploit public concern, particularly among vulnerable groups.
Here are several ways to identify misinformation:
Key Features of Fake Messages
- Lack of verifiable source links
- Unofficial domains (e.g., “.xyz”, “.info”) in links
- Overly emotional language pushing urgency
- Poor grammar or spelling
- Requests for personal or banking information
To help the public, the government and cybercrime agencies have released practical tips for identifying and reporting such scams.
Trusted Verification Actions
- Cross-check any claims on the official GOV.UK site
- Check DWP’s verified Twitter or Facebook accounts for announcements
- Contact your local Jobcentre Plus for confirmation
- Report phishing emails to: report@phishing.gov.uk
Here’s a helpful comparison between official and fake payment communications:
| Feature | Official Payment Info | Fake or Scam Messages |
| Source | GOV.UK / DWP announcements | Social media or WhatsApp |
| Personal data required | None | Often requested |
| Application required | No (payments are automatic) | Usually requires clicking a link |
| Language | Formal, clear communication | Vague or emotionally manipulative |
What Financial Support is Actually Available in 2025?
Although the £500 payment claim is false, several legitimate financial support schemes remain available across the UK.
These schemes are designed to support different groups, from unemployed individuals to low-income families and pensioners.
Ongoing Support Options:
- Universal Credit: For people on low incomes or out of work.
- Pension Credit: For those over State Pension age with low income.
- Housing Benefit: Assistance with rent payments.
- Council Tax Reduction: Discounts on council tax bills.
- Winter Fuel Payment: For older residents needing help with heating costs.
- Discretionary Housing Payments: Additional help with housing costs.
- Local Welfare Assistance Schemes: Managed by local councils, offering emergency support.
Many councils also continue to operate the Household Support Fund, although funding and access criteria can vary. These funds often provide:
- Food vouchers
- Help with fuel bills
- Emergency grants
Each of these schemes has its own eligibility rules, and most require applications through local council websites or Jobcentres.
Who Can You Contact for Help with the Cost of Living Crisis?
Navigating available support can be overwhelming, especially with misleading information circulating.
Fortunately, several organisations provide free, confidential advice on benefits, debt, and budgeting.
Recommended Support Organisations
- Citizens Advice: Offers help with benefits, legal advice, and energy bills. Available online or in local branches.
- MoneyHelper: A government-backed service offering money and debt advice.
- StepChange Debt Charity: Supports individuals facing debt problems with tailored action plans.
- Turn2Us: A charity that provides information and grants for those in financial difficulty.
If you’re unsure about your eligibility or need help applying for assistance, these services can guide you step-by-step. Most provide online eligibility checkers and application support tools.
Conclusion
There is no official £500 cost of living payment from the UK Government or DWP. The final cost of living payment was £299, made between 6 and 22 February 2024, and brought the total for that year to £900.
Since then, the Government has made it clear that no new payments are planned. Any claims to the contrary, especially those circulating on social media or through messaging apps, should be considered misleading or fake.
If you’re struggling with rising costs, there is still legitimate support available through existing benefit systems and local authority schemes.
Always seek information from official government channels to ensure you’re getting accurate and up-to-date guidance.
Frequently Asked Questions
Did anyone actually receive the £500 cost of living payment?
No, there is no evidence that anyone received a legitimate £500 cost of living payment in 2025. This payment was never announced or authorised by the UK Government or DWP.
Why are fake cost of living payments being shared online?
Fake payments are often part of misinformation campaigns or scams aimed at collecting personal information. They can also stem from misunderstandings or hoaxes shared widely on social media.
How can I report a cost of living payment scam?
You can report scams to Action Fraud at actionfraud.police.uk or call 0300 123 2040. You can also report phishing emails to report@phishing.gov.uk.
Will Universal Credit receive new support in 2025?
There have been no new announcements for extra support for Universal Credit claimants beyond existing benefit payments. However, the system remains in place to support low-income households.
What help can pensioners get for the cost of living in 2025?
Pensioners may be eligible for Pension Credit, Winter Fuel Payment, and help from local authorities depending on their income and circumstances.
Can local councils offer emergency cost of living support?
Yes, many local councils have access to emergency funds like the Household Support Fund, which can provide food or energy vouchers to those in need.
Is there a government portal to check for official payment announcements?
Yes, the official government website www.gov.uk is the best place to verify any payment-related news. The DWP also shares updates via its verified social media accounts.
