£299 Cost of Living Payment – Is DWP Preparing a 2025 Festival Relief Package?

In 2025, UK households continue to face rising costs of living, driven by inflation and surging energy bills. Many people are asking if the Department for Work and Pensions (DWP) will offer another £299 Cost of Living Payment or introduce a new Festival Relief scheme. While no new payments have been confirmed, several forms of support remain available. This guide explains what’s currently in place and how to access it.

Payment

The £299 Cost of Living Payment was the final installment in the government’s three-part support scheme that began in 2022. This last payment was issued in February 2025 to eligible households receiving certain means-tested benefits.

These payments were designed to help low-income families deal with increased costs of food, energy, and rent. Although no further payments have been confirmed, knowing the support that still exists is key to staying financially afloat.

Eligibility

To have received the £299 payment, you must have been on one of the following benefits during the qualifying period:

• Universal Credit
• Pension Credit
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)

The payment was automatic—no applications were needed. If you qualified, the money would have been paid directly into your bank account.

Relief

Recently, the term Festival Relief has been gaining attention. It refers to the idea of a one-time government payment issued during festive periods to help with extra seasonal costs. However, as of now, the DWP has not announced any such payment for 2025.

The speculation around Festival Relief likely stems from ongoing pressure by advocacy groups who highlight the financial strain holidays place on low-income households. Despite the demand, no official relief scheme for festivals currently exists.

Support

Even without a confirmed £299 or Festival Relief payment, the government still offers important support programs. These include emergency funds, heating support, and benefit increases aimed at helping families meet rising costs.

1. Household Support Fund

This fund is managed by local councils and is aimed at people in urgent financial need. It can help cover:

• Food
• Utility bills
• Rent or housing essentials

To apply, contact your local council. Funding is limited, so apply early if possible.

2. Winter Fuel Payments

This program supports pensioners with the cost of heating their homes. Payments range from £100 to £300 and are sent automatically if you meet the criteria.

Those on Pension Credit may also get a Warm Home Discount, which further reduces energy bills during colder months.

3. Energy Price Guarantee

This government cap on per-unit energy costs helps prevent sharp increases in gas and electricity bills. It offers some predictability in budgeting, especially during winter.

4. Benefit Increase

In April 2025, most benefits rose by 6.7 percent to match inflation. This means people on Universal Credit, Pension Credit, and other support schemes should now receive slightly more to help manage their expenses.

Checking

Not sure if you qualify for any of these programs? Follow these steps to check:

• Visit the gov.uk website and use the Benefits Checker
• Contact your local council for information about emergency funds
• Speak to Citizens Advice or a local charity for help with forms and appeals

These resources are free and confidential. They can guide you through the application process and help you access the support you’re entitled to.

Tips

To get the most out of available support, try these practical strategies:

Keep your information updated

Always ensure your personal and banking details are current on government platforms. Old or incorrect information can delay payments or lead to missing out altogether.

Monitor official updates

Government policies can change quickly. Check trusted websites like gov.uk and news sources for any new announcements on cost of living support or special payments.

Use budgeting tools

Free online tools like the Money Advice Service’s budget planner can help you keep control over your income and spending. Planning your finances can make a big difference during challenging times.

Connect with local groups

Community centers and online forums often share valuable information and support. Learning from others who have successfully claimed support can boost your confidence and chances.

Although the £299 Cost of Living Payment has already been distributed and no new Festival Relief is currently confirmed, the government still offers multiple routes of support in 2025. The key is to stay proactive—check eligibility, apply early, and use all the tools available to you. In a tough economy, small steps can lead to much-needed relief.

FAQs