With living costs still challenging many households, a common question among Scottish residents is whether the Department for Work and Pensions (DWP) will issue another cost of living payment in 2025. The answer, confirmed by the UK Government, is no. The DWP Cost of Living Payment scheme officially ended in February 2024, with the final payment of £299 made between 6 and 22 February 2024.
This payment marked the end of a temporary scheme introduced to support low-income families, pensioners, and disabled individuals during the peak of inflation and energy price increases. The DWP clarified that there are no further planned cost of living payments in 2025, as the scheme was not intended to be permanent.
However, the absence of a new DWP payment does not mean financial support has vanished altogether. The Scottish Government continues to provide several assistance schemes tailored to residents in Scotland, ensuring that those on low incomes or facing hardship still have access to help in 2025.
What Was the DWP Cost of Living Payment Scheme?
The DWP’s Cost of Living Payment scheme was a significant part of the UK’s emergency response to the cost of living crisis that began in 2022.
Rising inflation, surging food prices, and escalating energy bills placed immense pressure on households, prompting the government to introduce direct payments to ease financial burdens.
The payments were distributed over three years, supporting millions of people who received qualifying benefits such as Universal Credit, Pension Credit, Employment and Support Allowance (ESA), and Disability Living Allowance (DLA).
The timeline below shows how the scheme evolved from 2022 to its conclusion in early 2024:
| Year | Payment Amount | Distribution Period | Key Purpose |
| 2022 | £650 (two instalments) | July & November 2022 | Initial inflation relief |
| 2023 | £900 (three instalments) | April, October 2023 & Feb 2024 | Continued cost of living support |
| 2024 | £299 (final payment) | 6–22 February 2024 | Closure of the support scheme |
These payments offered essential financial relief to people on the lowest incomes, providing extra cash to manage higher bills and grocery costs. The final £299 instalment in February 2024 officially concluded the scheme, and the DWP announced there would be no further cost of living payments in 2025.
Why Did the DWP End the Cost of Living Payments in 2025?
The DWP’s decision to end the scheme stems from a combination of economic and policy considerations. The cost of living crisis that began in 2022 was a direct result of inflationary pressures following the pandemic and global energy price spikes.
However, by late 2024, inflation had eased, and energy prices stabilised compared to the previous two years.
Government ministers stated that the cost of living payments were temporary emergency interventions, not permanent benefits. The focus has now shifted toward targeted and sustainable welfare support, rather than one-off national payments.
In 2025, the emphasis is on improving core benefit rates and locally managed assistance programmes, particularly in devolved nations such as Scotland. This approach aims to give individuals long-term stability through regular welfare improvements rather than sporadic one-time grants.
What Support Is Still Available in Scotland in 2025?
Although the DWP cost of living payments have ended, Scottish residents can still access a variety of financial support schemes. These are primarily administered by the Scottish Government and local councils, focusing on vulnerable households, carers, and people struggling with housing costs.
One of the most notable forms of assistance is the Carer’s Allowance Supplement, an additional payment for people in Scotland who receive Carer’s Allowance.
This supplement is issued twice a year, typically in June and December, and provides a financial boost to those caring for disabled or ill relatives. It recognises the vital role unpaid carers play in society and helps to offset some of their financial strain.
Another major support programme is the Scottish Welfare Fund, which provides two types of non-repayable grants: Crisis Grants and Community Care Grants.
Crisis Grants are designed for immediate emergencies such as food shortages or urgent household repairs, while Community Care Grants assist people moving out of institutional care or settling into the community after homelessness. These grants remain an essential lifeline for many families across Scotland.
In addition, those who are struggling with rent payments or housing costs can apply for a Discretionary Housing Payment (DHP).
This payment supports people who already receive Housing Benefit or the Universal Credit housing element but still face a shortfall in covering rent or housing-related expenses. Local councils review each case individually to provide the most appropriate level of help.
Beyond these, UK-wide schemes like the Warm Home Discount, Winter Fuel Payment, and disability benefits such as Personal Independence Payment (PIP) and Attendance Allowance continue to offer vital support to eligible individuals throughout 2025.
How Can Scottish Residents Apply for Financial Assistance in 2025?
Applying for financial help in Scotland is straightforward and can usually be done online or via local councils. The Scottish Government’s official portal, mygov.scot, provides access to most application forms and eligibility details for devolved benefits.
Residents seeking help with crisis funding, rent, or community support should contact their local council directly. Councils manage applications for the Scottish Welfare Fund and Discretionary Housing Payments, ensuring that assistance is tailored to local needs and individual circumstances.
For benefits like the Carer’s Allowance Supplement or Scottish Child Payment, applications are handled by Social Security Scotland, the national agency responsible for administering devolved benefits.
Applicants are encouraged to provide accurate information about income, household composition, and existing benefits to avoid delays.
How Does Scottish Support Differ from DWP Payments?
While both systems aim to support low-income households, there are notable differences between the DWP’s national scheme and Scotland’s devolved welfare approach. The table below highlights these distinctions:
| Aspect | DWP Cost of Living Payments (Ended 2024) | Scottish Government Support (Ongoing 2025) |
| Nature | Temporary national scheme | Permanent devolved welfare system |
| Administration | Department for Work and Pensions | Scottish Government & Local Councils |
| Eligibility | Linked to DWP benefits | Scotland-specific criteria |
| Payment Type | Automatic, one-off instalments | Application-based grants & supplements |
| Examples | £299 final payment (Feb 2024) | Carer’s Allowance Supplement, Scottish Welfare Fund, DHP |
This transition from emergency, UK-wide support to continuous local aid marks a significant shift in welfare strategy. It ensures that help is better targeted, more sustainable, and responsive to Scotland’s distinct social and economic context.
What Should Households Expect Moving Forward?
The absence of DWP cost of living payments in 2025 reflects a broader shift toward long-term welfare reform.
The Scottish Government and DWP are now focusing on increasing the value of existing benefits, strengthening local assistance programmes, and investing in initiatives that reduce household costs over time.
This includes exploring energy efficiency improvements, expanded childcare support, and income supplements for carers and families. These measures aim to build resilience against future economic pressures, rather than relying on temporary emergency grants.
Although there is no guarantee that new cost of living payments will return, both governments have committed to monitoring inflation and living costs closely. Should conditions deteriorate significantly, further interventions could be introduced to protect vulnerable groups.
Conclusion
There are no DWP Cost of Living Payments in 2025. The scheme concluded after the final £299 instalment was issued in February 2024. While this marks the end of direct DWP assistance for rising costs, Scotland continues to provide comprehensive financial support through devolved welfare programmes.
The Carer’s Allowance Supplement, Scottish Welfare Fund, and Discretionary Housing Payments remain vital resources for people struggling with financial pressures. These schemes demonstrate Scotland’s commitment to providing targeted and meaningful support to those most in need.
Although the national cost of living payment scheme has ended, the focus in 2025 is on building a fairer, more resilient welfare system that prioritises sustainable help over short-term relief.
FAQs About DWP Cost of Living Payment 2025 Scotland
Will there be any DWP cost of living payments in 2025?
No. The UK Government confirmed that the scheme ended in February 2024, and no further payments are scheduled.
What financial help can Scottish residents get instead?
People in Scotland can access support through the Carer’s Allowance Supplement, Scottish Welfare Fund, and Discretionary Housing Payment, among other devolved benefits.
How do I apply for the Scottish Welfare Fund?
Applications can be made through your local council’s website or by visiting mygov.scot, where full details and eligibility criteria are listed.
Can I still receive other DWP benefits in 2025?
Yes. Benefits such as Universal Credit, Pension Credit, and Disability Living Allowance remain active and unaffected by the end of the cost of living payment scheme.
Is the Carer’s Allowance Supplement automatic?
Yes. If you receive Carer’s Allowance and live in Scotland, you’ll automatically receive the supplement twice a year.
Are Crisis and Community Care Grants repayable?
No, both types of grants from the Scottish Welfare Fund are non-repayable and are meant to provide emergency support.
Could new payments be introduced in the future?
While there are no plans currently, the government may consider new support packages if the economic situation worsens.
