£165 Cost of Living Payment in April 2025 – How to Claim Your Support

£165 Cost of Living Payment in April 2025 – The rapid decline in the UK in 2024-25, and the continuous decline, has had a profound effect on the economic condition of the general public. To reduce this financial pressure, the government has announced the release of a new ‘Cost of Living Support Payment’. Under this scheme, eligible people will be given a one-time assistance amount of £165 from April 2025. Although it is less than the interest rate, the government still believes that families surviving this economic crisis will definitely get some relief.

In this article, we will know who needs this payment, what are its prescribed conditions, what will be the process of payment, and whether this assistance will actually be effective for the public or not.

Who will be eligible for this payment?

The UK Department of Work and Pensions (DWP) has set some eligibility conditions for this scheme. Only those people will be enrolled in this assistance amount who are already receiving the following benefits:

• Universal Credit
• Pension Credit
• Income-based Jobseeker Allowance (JSA)
• Income-based Employment and Support Allowance (Income-related Employment and Support Allowance – ESA)
• Income Support
• Working Tax Credit
• Child Tax Credit

According to government officials, this time the eligibility criteria have been made a little stricter than previously approved. Margaret Willoughby, an advisor at Citizens Advice Birmingham, says, “This time to get the benefit, it is mandatory that the person is receiving any eligible benefit between 26 January 2025 and 25 February 2025.”

According to the government, the budget to avail this payment is about 80 lakh families. However, this number is slightly less than the previous definitions.

When and how will the payment be made?

According to the government, this assistance amount of £165 will be given from 8 April 2025 and most talent will get this amount in their bank within two weeks.

• If someone is getting payment under DWP, then they will get this amount deposited in their account with the name “DWP COL” (cost of living).
• If someone is getting only tax credit and is not eligible for any other benefit for DWP, then HMRC (Her Majesty’s Revenue and Customs) will pay them from 16 April 2025. It is marked in their account with the name “HMRC COL”.

Warning to avoid fraud

The government has advised citizens to beware of fraud. DWP spokesperson Thomas Hargreaves says, “If someone asks you for bank details via phone or message and introduces himself as a government official, then be careful. The government does not ask for bank details for this payment.”

Why was this scheme needed?

Although the farmer rate in Britain has declined slightly, the financial condition of the common people still remains normal. According to the latest data from the Office of National Statistics (ONS),

• The total income of the document has come down to 2.9%.
• The supply of food items was 4.7% in January 2025, which was 19.2% in March 2023. Although there has been improvement in this, it has still become a matter of concern.
• There has been some reduction in energy bills, but the average household energy bills are still much higher than before the Corona epidemic.

Economic expert Dr. Eleanor Jameson says,

“The figures definitely show improvement, but the financial crisis of the common people is not over yet. Three years of continuous bad conditions have exhausted the savings of many families, and they are still struggling.”

What makes this payment different from the previous approval?

1. Change in the amount of assistance

This time the government has kept the amount of payment at £165, which is less than the previous rebate.

When the energy crisis was at its peak in 2022-23, the government provided assistance of up to £1,350.

Former Office for Budget Responsibility chief Robert Chott says,

“This time the amount has decreased because the government has also paid attention to its fiscal deficit (fiscal deficit). The government believes that now the conditions are better than before, so the amount of assistance has decreased.”

2. Change in eligible ineligibility

The earlier definition was only to see whether any person receives benefits on any date. But this time, a person is required to be a recipient of any eligible benefit during the entire “eligibility period” (26 January 2025 – 25 February 2025).

Will the assistance amount of £165 really be helpful?

There is mixed support for the payment.

James Bartle, 58, Cardiff (Pension Credit customer) says:

“£165 is good value but it’s not a huge relief package. My energy bill alone is £90 a month so it’s hardly a big help.”

Karen Wilson, Manchester (single mother, Universal Credit recipient) says:

“With this money I’d be able to buy things for my kids’ school without worrying about having to cut back on food. It’s not a huge help but it’s still a relief.”

Michael Ashford, director of the Money Advice Trust, said:

“It pays for immediate relief but we need a longer term solution.”

What happens next?

So far the government has not clarified whether further assistance payments will be given in the future. The Treasury Department says, “Decisions about future plans will be taken keeping in mind the economy and financial resources.”

Economic experts believe that inflation may fall in 2025, but it will take time to improve the financial situation of ordinary people. The Institute for Fiscal Studies estimates that the financial situation of low-income families will improve completely only by mid-2026.

Meanwhile, food banks and debt advice services are already preparing to realize that economic problems may persist even in 2025.

William Davis, director of the Trussell Trust, says, “This payment is a welcome step, but we expect the demand for food assistance to remain constant during 2025.”

Conclusion

The £165 support payment to be paid in April 2025 is not a huge amount, but it will definitely bring some relief to many families in difficult times. Beneficiaries of this scheme are advised to be cautious of fraud and contact the relevant authorities if they do not receive the payment.

All eyes will be on the government’s future plans, but the economic challenges are not over yet.

FAQs On £165 Cost of Living Payment in April 2025