As living expenses continue to climb, the UK government is stepping in once again with vital support for low-income households. One of the key measures this year is the £200 Cost of Living Payment set for June 2025. It’s part of the extended Household Support Fund, designed to help people afford essential items like food, utility bills, and housing costs. If you or someone you know is struggling financially, this guide breaks down how to apply, who qualifies, and what extra support is available.

Overview

The £200 Cost of Living Payment is a one-off payment issued by local councils. It’s aimed at helping people who are on low incomes or facing financial hardship due to the continued pressure of inflation and energy bills. This payment is made possible through the Household Support Fund, which received an additional £742 million in April 2025.

Support Fund

The Household Support Fund was launched to ease the burden on people hit hardest by the cost-of-living crisis. Local councils manage the distribution, allowing flexibility to target those most in need. Payments can be made directly to your bank account, sent as vouchers for food or energy, or even distributed through community support services.

Thanks to the 2025 extension, the fund will keep running until at least March 2026, making it one of the longest-running support programs in recent years.

Eligibility

Each council has the freedom to set its own rules, but generally, you might qualify if:

• You live in the UK and are a resident in the local council area
• You’re receiving benefits like Universal Credit, Income Support, ESA, JSA, Pension Credit, or Tax Credits
• You have a household income below a certain level (this varies by council)
• You are experiencing financial hardship, even if you’re not on benefits

Some examples:

• Birmingham Council supports households with incomes under £35,000
• Dudley Council requires under £2,000 in savings and specific income thresholds

Households with children, older people, disabled individuals, and unpaid carers are often prioritised.

Tip: Always check your local council’s eligibility list before applying to avoid wasting time.

Applying

Ready to apply? Here’s what to do:

1. Find your council: Use the GOV.UK ‘Find Your Local Council’ tool.
2. Visit the HSF page: Look for the Household Support Fund section on your council’s website.
3. Check the requirements: Make sure you meet the local eligibility rules.
4. Get your documents ready:
   • Proof of income (bank statements or wage slips)
   • Benefit award letters
   • Proof of ID
5. Submit your application: Usually via an online form, but phone and in-person help may be available.
6. Wait for a response: Councils typically reply within 2 to 4 weeks.

Payments are processed on a first-come, first-served basis, so apply as early as you can.

Payment Date

The £200 payments will begin rolling out in June 2025, but exact dates will depend on each council’s internal processes. Some areas may send funds directly to bank accounts, while others issue supermarket or energy vouchers. Check with your local authority for specific timing.

Extra Support

Apart from the £200 payment, there are other programs you may be able to tap into:

• Warm Home Discount: Get £150 off your electricity bill during the winter
• Cold Weather Payments: Receive £25 for each week of freezing weather from November to March
• Council Tax Reduction: Slash your monthly Council Tax if you’re on a low income
• Free School Meals and Food Vouchers: Available during term time and holidays for eligible children

These benefits can be stacked with the Household Support Fund, helping you make the most of available aid.

If your household is feeling the pinch, don’t wait—get your application in as soon as your local council opens the scheme. With flexible rules and various ways to apply, this £200 payment could help ease financial pressure at a crucial time.

FAQs