How to claim Cost of Living Payment with Universal Credit

ByThiago SF

The rise in energy bills, food prices, and transport costs has affected every household in the United Kingdom. For low-income families, this pressure has been even greater.

To help, the government created a series of Cost of Living Payments between 2022 and 2024. These payments offered direct financial support to people already receiving means-tested benefits.

Universal Credit was one of the most important benefits linked to this scheme. Many households that depended on it automatically became eligible for additional support, which was deposited alongside their regular benefit payments.

2. How the Cost of Living Payment was linked to Universal Credit

Universal Credit acted as a qualifying gateway for Cost of Living Payments. If a person or household was entitled to Universal Credit during specific “assessment windows,” they received an additional lump sum.

  • In 2022, eligible households were given £650 in two instalments (£326 and £324).
  • In 2023/24, a further £900 was paid in three instalments (£301, £300, £299).
  • Payments were made directly into bank accounts, often with the reference “DWP COL.”

These sums were not loans or advances. They were one-off payments designed to protect people from the sharpest impact of rising living costs.

By 2024, the scheduled rounds of support came to an end. The government confirmed that no new Cost of Living Payments are planned for 2025, though other forms of assistance such as Household Support Funds continue to operate at local level.

3. Eligibility conditions for Universal Credit claimants

Not every Universal Credit claimant automatically received a Cost of Living Payment. Eligibility depended on meeting certain conditions:

  • Active entitlement: the claimant had to be entitled to Universal Credit on a specific qualifying date.
  • Non-nil award: at least a small amount of Universal Credit had to be paid for that period. If the award was reduced to £0 because of earnings or sanctions, the household did not qualify.
  • Joint claims: couples making a joint Universal Credit claim received one payment per household, not per individual.

These conditions meant that some people who normally received Universal Credit could be excluded if their circumstances changed during the qualifying window.

4. Steps to check entitlement and claim effectively

Because the system was designed to be automatic, there was no separate form to fill in. Still, many households wanted reassurance that they had not been missed.

The following steps helped confirm entitlement:

  • Bank statement check: payments usually appeared separately with the label “DWP COL” or “HMRC COL.”
  • Universal Credit account: claimants could log in to their online journal and see whether any messages or updates had been posted by the Department for Work and Pensions (DWP).
  • Official letters: in some cases, letters were sent confirming that a Cost of Living Payment had been made.
  • Missed payment checks: if someone believed they were eligible but no payment arrived, the next step was to raise the issue through the Universal Credit journal or contact the DWP helpline.

5. Practical contacts and official channels

The most reliable sources of help were official DWP services and trusted advice organisations.

  • Universal Credit helpline: 0800 328 5644
  • Textphone: 0800 328 1344
  • Relay UK: 18001 then 0800 328 5644
  • GOV.UK: www.gov.uk/cost-of-living — main portal for updates
  • Citizens Advice Help to Claim: independent advice on Universal Credit and related payments

Contacting these channels allowed claimants to verify status, correct bank details, and ensure records were up to date.

6. Warnings and reminders

The popularity of the scheme also made it a target for fraud. Claimants were reminded that:

  • The Cost of Living Payment did not require a separate application.
  • DWP and HMRC would never request bank details by phone, text, or email.
  • Any message offering to “help you claim” for a fee was fraudulent.
  • Official updates would only come from GOV.UK, the Universal Credit online journal, or verified DWP letters.

Protecting personal information was as important as receiving the support itself.

7. Frequently Asked Questions

💭 Do I need to apply if I receive Universal Credit?
→ No. If you met the eligibility conditions during the qualifying dates, the payment was automatic.

📌 What if my Universal Credit was reduced to £0?
→ If your award was a nil payment, you were not eligible for that instalment.

👪 How much support could Universal Credit households receive?
→ £650 in 2022 and £900 in 2023/24, split into instalments.

🔒 What if I think I missed a payment?
→ Check your bank account and journal. If still missing, contact the DWP helpline for review.

📈 Are more Cost of Living Payments planned for 2025?
→ No. The scheme ended in 2024, but other benefits and local funds remain available.

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