As we move into autumn 2025 millions of UK households continue to feel the strain of high food, energy, and housing costs. Against this backdrop, rumours of a new £400 Cost of Living Payment from the Department for Work and Pensions (DWP) have begun circulating online. Headlines, blog posts, and social media videos suggest support could land in October, but how much of this is fact—and how much is speculation?
This report looks at the reality behind the claims, reviews past support schemes, and highlights what financial help is genuinely confirmed for late 2025.
No Official Confirmation of a £400 Payment
Despite widespread discussion online, the UK government has not confirmed any new £400 Cost of Living Payment for October 2025.
- The last series of DWP Cost of Living Payments concluded in early 2024.
- As of September 2025, no fresh scheme has been announced.
- Claims of an October rollout are based on unverified online sources rather than official statements.
Households should be cautious about misinformation and rely on official government channels such as GOV.UK for updates.
A Look Back at Past Cost of Living Payments
Understanding the background helps explain why many people expect a new round of support. Between 2022 and 2024, millions of households received automatic Cost of Living Payments.
| Payment Amount | Qualifying Benefit | Payment Window |
|---|---|---|
| £299 | Tax Credits | 16–22 Feb 2024 |
| £300 | Tax Credits | 10–19 Nov 2023 |
| £301 | Tax Credits | 2–9 May 2023 |
| £324 | Tax Credits | 23–30 Nov 2022 |
| £326 | Tax Credits | 2–7 Sept 2022 |
These payments offered vital relief at a time of soaring inflation, energy shocks, and food price surges.
Who Qualified for Previous Support?
Past payments were targeted at low-income households and linked directly to benefits. Qualifying benefits included:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
Households receiving both HMRC tax credits and DWP-administered benefits received just one payment per household to avoid duplication. Any future scheme would likely follow the same structure.
How Past Payments Were Delivered
The strength of earlier Cost of Living Payments was their simplicity:
- Automatic process: Money was paid directly into eligible claimants’ bank accounts.
- No applications required: People did not need to apply or contact DWP.
- Non-taxable: Payments did not count towards the benefit cap or affect other entitlements.
This hassle-free approach helped the money reach vulnerable families quickly. Households should remain wary of scam messages asking for bank details or applications for a so-called £400 payment.
Why the Rumours Persist
Speculation about a new £400 payment is rooted in real hardship still facing millions.
- As of early 2025, around 7.3 million adults lived in food-insecure households.
- Energy debt hit £3.9 billion by late 2024, more than double five years earlier.
- Food, fuel, and housing costs remain well above pre-crisis levels despite falling inflation.
Advocacy groups and charities continue to pressure the government for fresh financial support. While this has sparked rumours, no new scheme has yet been authorised.
Confirmed Financial Support for Late 2025
Although the £400 Cost of Living Payment remains unconfirmed, households can expect other forms of support this autumn and winter:
- Winter Fuel Payment: A tax-free annual payment for older people to help with heating bills. Letters will be sent in October or November, and payments are usually made automatically between November and December.
- State Pension Increase: Pensioners will receive more than £400 extra across 2025 due to the triple lock uprating, boosting annual incomes.
While these are not the same as lump-sum cost of living grants, they still provide additional support at a time of financial strain.
What Could a Future Support Scheme Look Like?
If the government decides to roll out new cost of living help, it would likely mirror past schemes:
- Targeted at low-income households receiving means-tested benefits.
- Automatic bank transfers without application processes.
- Non-taxable and non-impacting on other entitlements.
Campaigners argue that a new round of support is essential, but whether this takes the form of a £400 payment—or something different—remains to be seen.
5 FAQs
Q1: Is the £400 Cost of Living Payment confirmed for October 2025?
A: No. There is currently no official confirmation of such a payment from the government or DWP.
Q2: Who received past Cost of Living Payments?
A: Households on Universal Credit, income-based benefits, Pension Credit, or tax credits were eligible between 2022 and 2024.
Q3: How were past payments made?
A: They were paid automatically into bank accounts, with no need for applications, and did not affect benefit caps.
Q4: Why are people talking about a £400 payment now?
A: Persistent financial hardship, high energy debts, and food insecurity have fuelled speculation and calls for more government support.
Q5: What confirmed support is available for late 2025?
A: The Winter Fuel Payment and the State Pension increase are guaranteed forms of help this autumn and winter.
