The Department for Work and Pensions (DWP) has confirmed a £725 Cost of Living Payment for 2026, aimed at households receiving certain means-tested benefits. The one-off payment is designed to help families, pensioners and low-income individuals manage ongoing pressure from food, energy and housing costs.
The payment will be issued automatically to eligible claimants, meaning most recipients will not need to apply. Eligibility will depend on receiving qualifying benefits during a specific assessment period set by the government. Here is what we know so far about who qualifies, when payments will be made and how the support works.
What Is the £725 Cost of Living Payment?
The £725 payment is a one-off, tax-free support payment funded by the UK Government and administered by the DWP or HMRC, depending on the benefit type. It does not need to be repaid and does not affect:
- Existing benefit entitlement
- The benefit cap
- Income tax liability
The payment forms part of ongoing government support measures introduced in response to sustained cost pressures facing UK households.
Who Is Eligible for the £725 Payment?
Eligibility is not universal. The payment is targeted at people receiving qualifying means-tested benefits during a specific assessment date. While final confirmation for 2026 will be published on GOV.UK, historically eligible benefits include:
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit (with disability element)
Only one payment is made per eligible household, even if more than one qualifying benefit is received.
Pension Credit Claimants
Pensioners receiving Pension Credit are among the key groups expected to qualify. Many eligible pensioners do not currently claim Pension Credit. However, even a small award can unlock additional support, including cost of living payments and help with housing or council tax. Pensioners unsure about eligibility should check via GOV.UK or contact the Pension Service directly.
Universal Credit Claimants
Universal Credit claimants will usually qualify if they were entitled to payment during the assessment period set by the DWP. Even if your Universal Credit award was reduced due to earnings, you may still qualify depending on your entitlement status during that period. No separate claim form is required.
When Will the £725 Payment Be Made?
The exact 2026 timetable will be confirmed by the government. However, based on previous cost of living schemes:
- Payments are typically issued in phases
- The payment window may run across several weeks
- Money is paid directly into your usual benefit account
The DWP usually announces payment dates in advance to allow households to plan.
How Will the Payment Be Delivered?
If eligible, the £725 will be paid into the same bank account used for your regular benefits. The payment will appear separately from your usual benefit instalment and may include a reference indicating it is a Cost of Living Payment. You do not need to provide bank details again.
What If You Do Not Receive the Payment?
If you believe you qualify but do not receive payment: First, confirm you were receiving a qualifying benefit during the official assessment period. Second, check whether the payment phase is still ongoing. If necessary, contact the DWP or HMRC for clarification. In previous schemes, the government has provided an online reporting tool for missing payments.
Who Does Not Qualify?
People who were not receiving qualifying means-tested benefits during the assessment period will generally not be eligible.
Those receiving only:
- Child Benefit
- Non-means-tested benefits
- Benefits outside the qualifying list
are unlikely to qualify unless they also receive a listed benefit.
Why the Government Is Offering the Payment
Although inflation has eased compared with previous peaks, many households across England, Scotland, Wales and Northern Ireland continue to face higher than pre-pandemic living costs.
Energy bills, grocery prices and rent increases remain a challenge for low-income families. The £725 payment is intended as targeted financial support rather than a universal subsidy. Ministers have stated that directing support to benefit recipients ensures assistance reaches households most in need.
How the £725 Payment Can Help
For many families, the payment can help cover:
- Energy bills
- Food costs
- Rent or mortgage payments
- Transport expenses
- Essential household purchases
While it may not resolve long-term financial pressures, it can provide short-term relief during periods of increased cost.
What You Should Do Now
To avoid missing out:
- Ensure your benefit claim remains active
- Update bank details if they change
- Monitor GOV.UK for official announcements
- Be cautious of scam messages claiming to “release” payments
No application is required if you meet eligibility conditions.
Frequently Asked Questions
When will the £725 payment be paid?
The 2026 payment dates will be confirmed by the DWP, but payments are typically issued in phases over several weeks.
Do I need to apply for the £725 payment?
No. If you qualify based on benefit entitlement during the assessment period, the payment will be automatic.
Will the £725 payment affect my benefits?
No. It is tax-free and does not reduce other benefit payments.
Who qualifies for the payment?
People receiving certain means-tested benefits such as Universal Credit or Pension Credit during the qualifying period.
What if I didn’t receive it?
Check eligibility and contact the DWP or HMRC if the payment window has closed.