Across the UK, millions rely on various benefits to help manage everyday expenses. Around 24 million people are now receiving DWP-administered benefits, a crucial support system as the country continues to grapple with high living costs. While April’s price increases have slightly stabilised, many households are still struggling.
Despite increases in the state pension, minimum wage, and working-age benefits, inflation continues to outpace income growth.
According to the Joseph Rowntree Foundation, more than 21% of the population lived in poverty during 2022/23, totalling 14.3 million people. Adding to that, £23 billion worth of benefits goes unclaimed every year.
So, what kind of support is available in July 2025, and will there be another Cost of Living Payment? Here’s what you need to know.
What Is the Cost of Living Payment in July 2025?
The cost of living payment was introduced by the UK Government in 2022 to support low-income individuals and families struggling with rising expenses.
Payments were rolled out in phases to eligible claimants receiving certain DWP-administered benefits.
While the previous instalments were scheduled and delivered between 2022 and early 2024, the Department for Work and Pensions (DWP) has not confirmed any further payments for July 2025.
The last known instalment was distributed between 6 February and 22 February 2024. Without a formal government update, no new cost of living payment is expected this July.
Who Is Eligible for the Cost of Living Payment in July 2025?
There are currently no active payments scheduled, but should the scheme resume, eligibility would likely mirror past criteria. Those who previously qualified included recipients of:
- Universal Credit
- Income Support
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Tax Credit
- Working Tax Credit
The DWP continues to roll out the transition of legacy benefits to Universal Credit, with a target to complete this by January 2026. Those on legacy benefits such as Tax Credits, Housing Benefit, or JSA should have received notices about this transition. This migration will influence how future payments are handled and eligibility determined.
When Will the Cost of Living Payment Be Made in July 2025?
With no confirmed continuation of the cost of living payment scheme, there is no specific payment date to anticipate in July 2025.
However, standard benefit payments continue on their usual schedule since there are no bank holidays this month to disrupt the payment cycle.
Standard DWP Payment Schedule for July 2025
| Benefit Type | Payment Frequency |
| Universal Credit | Monthly |
| State Pension | Every 4 weeks |
| Pension Credit | Weekly or fortnightly |
| Child Benefit | Every 4 weeks |
| Personal Independence Payment (PIP) | Every 4 weeks |
| Attendance Allowance | Every 4 weeks |
| Disability Living Allowance | Every 4 weeks |
| Carer’s Allowance | Weekly or fortnightly |
| Income Support | Fortnightly |
| Jobseeker’s Allowance | Fortnightly |
All payments are made directly into the recipient’s bank accounts on the usual scheduled dates.
What Are the State Pension Payment Dates in July 2025?
State Pension payments are made every four weeks, with the specific weekday depending on the last two digits of an individual’s National Insurance (NI) number. The payment system is predictable, helping pensioners plan their monthly finances.
Pension Payment Days by NI Number
| NI Number Ending | Payment Day |
| 00 to 19 | Monday |
| 20 to 39 | Tuesday |
| 40 to 59 | Wednesday |
| 60 to 79 | Thursday |
| 80 to 99 | Friday |
This structure remains consistent throughout the year, including the month of July.
Have Benefit Rates Increased in 2025?
From April 2025, all working-age benefits have been uprated by 1.7%, in alignment with the official inflation figure from September 2024. This affects the following benefits:
- Universal Credit
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
- Employment Support Allowance (ESA)
- Carer’s Allowance
The State Pension saw an increase of 4.1% under the triple lock mechanism, resulting in an average rise of £472 per year.
Further changes have already been announced for April 2026. Universal Credit’s standard allowance will increase by £7 per week, taking the monthly figure from £91 to £98.
However, the health element of Universal Credit will be frozen at £97 per week until 2029/30. New applicants from April 2026 will only receive £50 per week for the health element, which represents a significant reduction.
What Other Financial Help Is Available in July 2025?
Even in the absence of a new cost of living payment, several support schemes are in place for households requiring financial assistance.
Budgeting Advance Loans
For those on Universal Credit who need urgent financial help, budgeting advance loans are available.
These are interest-free loans with a maximum repayment term of two years, repaid through automatic deductions from future Universal Credit payments.
Maximum borrowing amounts:
- £348 for single individuals
- £464 for couples
- £812 for those with children
From April 2025, deductions from Universal Credit to repay loans are capped at 15% of the standard allowance, reduced from the previous 25%.
Discretionary Housing Payment (DHP)
DHPs are managed by local councils and assist households with additional housing costs. To qualify, individuals must already receive Housing Benefit or the housing element of Universal Credit. DHPs can help cover:
- Shortfalls in rent
- Deposits for new rentals
- Advance rent when relocating
Eligibility criteria and available amounts vary by local authority. Applicants should contact their local council for specific guidance.
Household Support Fund
The Household Support Fund (HSF), extended until March 2026, offers help to households in financial distress. Managed by local councils, this fund can be used to cover:
- Utility bills
- Household essentials
- One-time cash payments (up to £300)
Households must apply through their local authority. Each council has its own eligibility rules and application processes.
Are There Charitable Grants Available for Struggling Households?
Charities continue to offer limited financial support in the form of grants. The charity Turn2us provides a searchable tool that helps individuals find relevant grant opportunities.
These grants are typically designed for:
- People with disabilities or chronic illness
- Carers
- Bereaved individuals
- Students or unemployed individuals
Each charity has its own eligibility requirements, and the funds available tend to be small-scale or one-off.
Can I Get a Reduction on My Council Tax?
Council Tax Reduction schemes are available for those on low incomes or receiving certain benefits. Depending on the household’s circumstances, reductions of up to 100% can be applied.
Local councils also offer discretionary support for those facing severe financial hardship. To apply, residents need to contact their local authority or use the online government portal.
Is There Any Help for Energy Bills in July 2025?
As of July 2025, Ofgem’s energy price cap has been reduced from £1,849 to £1,720 for a typical household on a standard variable tariff.
This 7% drop marks the first decrease following three consecutive rises and is expected to bring some relief to consumers.
In addition to the price cap, several energy providers offer support for customers struggling to pay their bills. Major suppliers with support schemes include:
- British Gas
- EDF
- E.ON
- Scottish Power
- Octopus Energy
Customers are encouraged to contact their provider directly for eligibility checks and application processes.
What Changes Are Coming for Free Childcare in 2025?
The UK Government’s rollout of extended childcare provision continues in 2025. Parents already benefiting from free hours will see expanded eligibility from September.
Current childcare entitlement:
- 15 hours/week for 2-year-olds (from April 2024)
- 15 hours/week for children aged 9 months and above (from September 2024)
From September 2025, all working parents of children under 5 will be entitled to:
- 30 hours of free childcare per week
Parents must apply through the government portal and reconfirm their eligibility every three months. The Tax-Free Childcare scheme also remains in place, offering £500 per year per child (or £1,000 for children with disabilities) in government contributions when families contribute towards childcare.
Will There Be Another Cost of Living Payment After July 2025?
As of July 2025, the DWP has not announced plans for another cost of living payment. The scheme officially ended in February 2024, and no further extensions have been publicised.
However, changes in government policy or unexpected economic shifts may lead to the reintroduction of similar support measures in the future.
Where Can You Get Mental Health Support While Dealing with Financial Stress?
A number of organisations continue to offer mental health support for individuals dealing with the strain of financial difficulties.
- Samaritans: Call 116 123, free and available 24/7
- Mind: Offers emotional support and a welfare benefits helpline
- NHS England: Provides online triage and therapy referrals
- Scope: Offers community forums and support for people with disabilities
These services are free and confidential, and they can be vital for people experiencing anxiety or depression related to financial pressure.
Conclusion
In the absence of a confirmed cost-of-living payment in July 2025, it’s vital that households explore all available financial support.
From updated benefits and pension increases to childcare schemes and discretionary housing aid, there are still many ways to stay afloat during difficult times.
With further welfare changes on the horizon, staying informed is key. Make sure you’re claiming everything you’re entitled to and regularly check for government updates to ease the financial pressure this year.
FAQs About the Cost of Living Payment July 2025
What can I do if I missed a previous Cost of Living Payment?
You should contact DWP to report a missed payment and verify your benefit eligibility at the time of the scheduled distribution.
Are disabled individuals eligible for additional support?
Yes. Disability benefits like PIP, DLA, and Attendance Allowance continue to offer support, along with charitable grants and discretionary payments.
Can carers get extra financial support in 2025?
Carer’s Allowance remains available, and carers can also apply for charitable grants or council tax reductions.
What should I do if my pension payment is late?
Contact your pension provider or HMRC immediately. Payments are usually based on your NI number, so delays can be quickly resolved.
How are Universal Credit deductions changing?
From April 2025, deductions are capped at 15% of the standard allowance, down from the previous 25%.
How do I apply for free childcare in 2025?
Applications must be made online through the government’s childcare portal. Eligibility must be reconfirmed every three months.
Is rent support still available under Universal Credit?
Yes, the housing element still provides rent support. You may also apply for Discretionary Housing Payments through your local council.
