Universal Credit 325 Payment 2025: What Claimants Need to Know?

If you’ve been relying on financial assistance from the government in recent years, you’re likely familiar with the Cost of Living Payments, including the £325 instalment.

With the rising cost of essentials and inflation still pinching pockets across the UK, many are wondering what support will be available this year. Understandably, the big question on many minds is: Is there a Universal Credit £325 payment in 2025?

This blog breaks down everything claimants need to know about the Universal Credit 325 payment 2025, the end of Cost of Living Payments, recent changes in Universal Credit, who was eligible in the past, and what support options remain for households across the country.

Is the £325 Universal Credit Payment Coming in 2025?

As of 2025, the Department for Work and Pensions (DWP) has confirmed that no further Cost of Living Payments are scheduled, including the £325 instalment that was issued in previous years. The scheme that once provided targeted support to low-income households, benefit claimants, and pensioners has officially ended.

Between 2022 and 2024, the government delivered several one-off payments, such as £326, £324, £301, £300, and £299, to help eligible households manage soaring living costs. These payments were part of a temporary initiative to support people during a period of economic strain, including the energy crisis and inflation spikes.

From 2025 onwards, however, there will be no £325 payment under Universal Credit or any other benefit. The conclusion of the scheme means that claimants who previously received the support will not get an equivalent amount this year. The government has shifted its approach from one-off emergency payments to structural adjustments within the benefits system.

Why Did the DWP Stop the Cost of Living Payments?

The discontinuation of Cost of Living Payments was a policy decision influenced by changing economic conditions. The original payments were meant to be temporary, offering direct financial aid to households in urgent need during a period of national crisis.

Several reasons have contributed to the scheme ending:

Shift in Economic Priorities

As inflation began to stabilise and energy costs levelled off, the government re-evaluated the need for additional cash injections.

Reallocation of Resources

Rather than extending one-off payments, the DWP has opted to increase the standard benefit rates, ensuring long-term consistency for claimants.

Administrative Costs and Automation

Each round of Cost of Living Payments required dedicated administrative systems. With those now winding down, the DWP has chosen to streamline benefits into core payments.

This change reflects a transition towards regular benefit enhancements as opposed to temporary relief schemes. The universal credit 325 payment 2025, therefore, is not part of the current or future welfare strategy.

How Has Universal Credit Changed in April 2025?

Although the Cost of Living Payment scheme has ended, there’s good news for Universal Credit claimants. As of April 2025, the standard allowance for Universal Credit increased by 1.7%.

This uplift was introduced to help households keep pace with inflation and ensure a baseline of financial stability. Here is a table showing the adjusted monthly rates for standard allowance:

Updated Universal Credit Standard Allowance (April 2025)

These increases may not seem substantial, but they represent the government’s effort to integrate cost-of-living adjustments directly into benefit structures, reducing the reliance on one-off support like the universal credit 325 payment 2025.

Who Was Eligible for the Previous Cost of Living Payments?

From 2022 to 2024, Cost of Living Payments were provided to millions of households. Eligibility depended on receiving certain income-related benefits or tax credits during specific timeframes.

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

Non-qualifying Benefits

• New Style JSA
• New Style ESA
• Contributory ESA

Eligibility was assessed automatically, and payments were made directly into the claimant’s usual account. No application was required, and even late eligibility could result in payment after the assessment period.

What Are the Payment ates for the £299, £300, and £301 Installments?

While there is no universal credit 325 payment 2025, here’s a look at the past Cost of Living Payment dates for clarity.

Universal Credit Payment Schedule

Tax Credit Payment Schedule

These tables offer insight into when payments were typically made and underscore the automated process used by the DWP and HMRC.

Can Claimants Still Get Support in 2025 Without the Universal Credit 325 Payment?

Yes, even though the £325 payment won’t be issued in 2025, claimants still have access to several types of financial support.

Current Support Options in 2025

1. Household Support Fund

Local councils continue to provide support through this fund, which helps with essentials like energy, food, and household bills.

2. Hardship Payments

Claimants who have faced sanctions or sudden drops in income may qualify for hardship payments through the DWP.

3. Discretionary Support Schemes

Each UK nation offers its own schemes:

• England: Local Welfare Assistance
• Scotland: Crisis Grant or Community Care Grant
• Wales: Discretionary Assistance Fund
• Northern Ireland: Short-term Benefit Advance

These options show that although the universal credit 325 payment 2025 isn’t available, the safety net still exists in various forms.

What Should You Do If You Missed a Cost of Living Payment?

If you believe you were eligible for a Cost of Living Payment between 2022 and 2024 but never received it, the DWP allows you to report a missing payment.

Steps to take

• Contact the office that issues your benefit (e.g., Universal Credit or Tax Credit team).
• Provide your National Insurance number, payment history, and account information.
• The DWP may conduct a review if you were found eligible during the designated timeframe.

In some cases, delays occur due to changes in bank accounts or late benefit awards. However, all eligible payments should have been made automatically.

Could You Still Be Paid Automatically Without Applying?

Yes, all previous Cost of Living Payments, including the £325 instalment, were issued automatically. This also meant claimants were protected from potential scams, as no application or online form was required.

If someone contacted you asking for personal details to claim a payment, it may have been a scam. The DWP clearly stated that authentic payments come without request, directly into your benefit-linked account.

Why Might Someone Have Been Ineligible for the Cost of Living Payment?

Several reasons could explain why a person did not receive their expected Cost of Living Payment.

Common Ineligibility Reasons

• Benefit entitlement was reduced to £0 during the qualifying period (known as a nil award).
• Claimant received two income payments during the assessment period.
• Household income or savings exceeded the threshold.
• A benefit sanction was applied for not meeting agreed commitments.

Exceptions

Some who received a nil award due to deductions (like rent arrears) or hardship payments may have still qualified. The DWP reviewed these cases individually.

Are There Other Payments Like the Disability or Pensioner Cost of Living Payment?

Beyond the standard Cost of Living Payments, there were other targeted supports.

Disability Cost of Living Payment

Claimants who received qualifying disability benefits like PIP, DLA, Attendance Allowance, or Armed Forces Independence Payment were paid £150 in two instalments.

Pensioner Cost of Living Payment

Those eligible for Winter Fuel Payments during the winters of 2022 to 2024 received £150 or £300 extra with their benefit.

These payments have also ended but were crucial in helping vulnerable groups navigate the colder months and additional expenses.

Conclusion

The universal credit 325 payment 2025 is not returning, but that doesn’t mean claimants are left without help. The government has gradually shifted its strategy from temporary payments to long-term benefit enhancements and localised support schemes.

While the absence of one-off payments might be disappointing, the 1.7% increase in Universal Credit rates, ongoing discretionary funds, and hardship support show that assistance remains available.

If you’re unsure what you may be eligible for in 2025, it’s always best to contact your local benefits office, use an online benefits calculator, or speak with an adviser. The key is staying informed and knowing where to find support when needed.

Frequently Asked Questions

Will there be any Cost of Living Payment in 2025?

No, the DWP has confirmed that there will be no Cost of Living Payments issued in 2025, including the £325 instalment.

Why is the £325 payment not being issued in 2025?

The scheme has concluded, and the government has opted to increase benefit rates instead of issuing one-off payments.

Can I still receive support if I’m on Universal Credit in 2025?

Yes, Universal Credit has increased by 1.7% from April 2025, and additional help is available through local and national support funds.

How can I check if I was eligible for the previous Cost of Living Payments?

Check your benefit history and the DWP eligibility periods from 2022 to 2024. If you qualify but didn’t receive a payment, contact your benefits office.

Are the new Universal Credit payments replacing the Cost of Living support?

They are not a direct replacement but serve as a more sustainable, ongoing increase to regular payments.

What should I do if I get a message asking me to apply for a Cost of Living Payment?

Ignore it, as all payments were automatic. This could be a scam.

Can I get support from the Household Support Fund in 2025?

Yes, many councils in England continue to offer aid through the Household Support Fund to help with essential expenses.