As prices for food, energy, and essentials continue to rise, the UK government is introducing a £90 Cost of Living Payment this March 2025. This one-off support is being rolled out as part of the extended Household Support Fund, designed specifically to assist vulnerable households already receiving certain means-tested benefits.
The payment will be made automatically, so most eligible recipients won’t need to apply. However, it’s still important to understand the eligibility criteria, payment process, and how best to use this support in today’s high-cost climate.
What Is the £90 Cost of Living Payment?
The £90 Cost of Living Payment is a targeted government initiative aimed at easing financial strain for low-income households. It serves as short-term relief for those struggling to meet the growing cost of daily needs.
This support is designed to help cover basic living expenses like energy bills, food, transport, and other essential costs. Introduced under the Household Support Fund, this payment aims to bridge the gap for households that may be most impacted by inflation and rising utility charges.
Unlike previous benefits, the £90 grant is structured as a one-time cash boost, delivered straight into the bank accounts of those eligible.
Who Is Eligible for the £90 Payment in March 2025?
Eligibility for this payment is tied to specific means-tested benefits. If you are receiving one or more of the following during the qualifying period, you’re likely to receive the payment:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
These benefits signal financial vulnerability, which the government is using as a filter to determine who should receive the payment. It’s important to note that contribution-based JSA and ESA are not qualifying benefits, and neither is Carer’s Allowance, unless you also receive one of the eligible benefits.
How and When Will the Payment Be Made?
The £90 payment is scheduled for March 2025, though the exact date may vary depending on your benefit cycle and bank processing times.
The Department for Work and Pensions (DWP) has confirmed that no separate application is needed. If you’re eligible, the money will appear in your bank account automatically, just like any other benefit payment.
In cases where the payment doesn’t arrive as expected, the DWP recommends waiting up to 10 working days before reaching out for support.
What If You Don’t Receive the £90 Payment?
If the payment date has passed and no money has landed in your account, start by checking your Universal Credit journal or any letters from DWP. These often include updates about payment status.
It’s also a good idea to verify your bank details and make sure your contact information is current. Even minor errors can delay payments. If 10 business days pass without resolution, you should contact the DWP helpline for further assistance.
Manual Applications Through Local Councils
While the DWP handles the main £90 payment, some local councils may offer additional support through the Household Support Fund. In these cases, a manual application might be required.
To apply:
- Locate your local authority using the GOV.UK Council Finder
- Visit your council’s official website and check for guidance on Household Support Fund applications
- Be prepared to submit proof of benefit eligibility, income, and identity
- Some councils may accept applications over the phone if you’re unable to apply online
Although these local funds differ in scope and rules, they can be useful if you’re facing more severe hardship or haven’t qualified for national-level payments.
How This Fits into the Household Support Fund
The £90 payment is one piece of the larger Household Support Fund, which has been extended to help low-income families with essential daily costs.
Depending on your council’s approach, the fund may also offer:
- Free school meal vouchers during holidays
- Assistance with grocery costs or referrals to food banks
- Support with utility bills, including water, gas, and electricity
- Help with essential household appliances or emergency housing needs
Because each council has discretion over how the fund is distributed, the type and amount of help you receive may vary by region.
Using the £90 Payment Wisely
While £90 might not solve all your financial concerns, it can go a long way if managed carefully. Here are a few ways to make the most of it:
Instead of letting the funds sit unused, consider applying them directly to your most urgent bills, such as overdue utilities or essential groceries. You could also use a portion for travel costs related to work, childcare, or medical needs.
Focusing on core essentials first can help create short-term breathing room in your overall monthly budget.
If possible, allocate a small portion to bulk food purchases or discounted essentials from supermarkets. Loyalty cards and special discount days can stretch your money even further. Avoid impulse spending—this payment is designed to provide stability, not act as extra spending money.
FAQs
What is the £90 Cost of Living Payment?
It’s a one-time financial support grant for UK residents receiving certain means-tested benefits.
When will the payment be made?
The DWP has confirmed the payment will be issued in March 2025, though exact dates may vary by recipient.
Do I need to apply?
No. If you qualify, the payment will be sent automatically to your bank account.
What if I don’t receive the payment?
Wait 10 working days after the expected date, then check your DWP messages or call the DWP helpline.
Will this affect other benefits?
No. The £90 payment is non-taxable and doesn’t count toward your income when calculating other benefits.
Can students or part-time workers get it?
Only if they are also receiving a qualifying benefit like Universal Credit or Pension Credit.
What kind of help can councils provide?
Local councils may offer extra support through the Household Support Fund—such as help with bills, housing, and food—but this may require a separate application.
Will more payments follow after March?
It’s unclear. Future support will depend on inflation trends and government policy decisions later in the year.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.