The Department for Work and Pensions (DWP) has officially confirmed that no new cost of living payments will be issued in 2025.
This announcement has left many low-income households, pensioners, and vulnerable individuals wondering how they’ll cope as energy bills, food prices, and fuel costs remain high.
But there’s good news: millions may still be missing out on thousands of pounds in unclaimed benefits. With a bit of effort, you could unlock extra support just by using a free, confidential online benefits calculator.
Why There Are No Cost of Living Payments in 2025
From 2022 to 2024, the UK government issued a series of one-off cost of living payments to help people tackle inflation and rising utility bills.
These included £650, £900, and other support packages. However, in 2025, the DWP has confirmed it will not offer further payments due to budget prioritisation and a shift toward longer-term welfare strategies.
Despite this, financial pressure remains a daily reality. Fortunately, unclaimed benefits are still available and could significantly boost household income.
Top Unclaimed Benefits You Could Still Access
Many people assume they’re not eligible for support due to owning a home, having modest savings, or receiving a small pension. But thousands of pounds are left unclaimed every year because of these myths. Here are the most valuable options you should explore:
1. Council Tax Reduction (Up to £850/year)
Especially valuable in Scotland, the Council Tax Reduction Scheme could save you up to £850 annually.
| Region | Eligible Households (2024) | Potential Savings |
|---|---|---|
| Scotland | 458,470 | Up to £850/year |
| Rest of UK | Varies by local authority | Varies |
If you’re on a low income, even if working, or receiving certain benefits, this reduction could lower your monthly Council Tax bill substantially.
2. Pension Credit (Worth Average £4,300/year)
An estimated 760,000 pensioners are eligible for Pension Credit but are not claiming it. This benefit is means-tested, but even an award of £1 per week can unlock:
- Free NHS dental treatment
- Cold Weather Payments
- TV Licence discounts
- Council Tax exemptions
Pensioners can check eligibility via the Pension Credit Calculator or call 0800 99 1234.
3. Disability Benefits (Worth Up to £749.80 Every Four Weeks)
Both working-age and pension-age individuals with long-term health conditions or disabilities may qualify for the following:
| Benefit | Weekly Rate (2025) | Four-Week Total |
|---|---|---|
| Personal Independence Payment (PIP) | £29.20 – £187.45 | Up to £749.80 |
| Attendance Allowance | £73.90 – £110.40 | Up to £441.60 |
You can apply for these if your daily life or mobility is affected. Pension Age Disability Payment is also available in some devolved areas.
How to Find Out What You Can Claim
Using an online benefits calculator is the fastest way to check your eligibility. These tools are:
- Free
- Confidential
- Easy to use
You’ll need details such as:
- Income and savings
- Rent or mortgage payments
- Council Tax bill
- Current benefits and pensions
Within 10 minutes, you’ll get a clear estimate of what you can claim.
Trusted Benefit Calculators Include:
- Turn2Us
- EntitledTo
- Policy in Practice
- Advice Direct Scotland (includes devolved benefits)
These calculators also cover Universal Credit, Carer’s Allowance, and crisis grants. They help estimate how your benefits may change if you return to work or adjust working hours.
Who Should Check for Unclaimed Benefits?
If any of the following apply, it’s worth checking:
- You are temporarily unable to work or on sick leave
- You are a carer
- You are looking for work or were recently made redundant
- You are a parent, especially with a child who has a health condition
- You are over State Pension age on a low income
- You have lost a loved one
Many people qualify for more support than they realise—it’s free to check, and the benefits can add up quickly.
Take Action While Support Is Still Available
While the DWP will not issue a new cost of living payment in 2025, that doesn’t mean support has disappeared. From Pension Credit worth £4,300 per year to Council Tax savings and disability benefits, thousands of pounds in unclaimed entitlements are still available.
Take 10 minutes this weekend to use a benefits calculator, gather your personal information, and see what you might be missing. One quick check could put hundreds—or even thousands—back into your pocket.
FAQs
Why isn’t there a DWP cost of living payment in 2025?
The DWP confirmed it will not issue additional cost of living payments in 2025, focusing instead on long-term benefit strategies.
How can I check if I’m missing out on benefits?
Use a free, confidential benefits calculator like Turn2Us or EntitledTo to assess what you may be eligible to claim.
Can pensioners with savings claim Pension Credit?
Yes. Even a small weekly award may unlock thousands in additional support, regardless of savings or home ownership.