The UK government has officially confirmed that a one-off payment will be made before the New Year for millions of people receiving State Pension, PIP and other qualifying benefits. The announcement, issued through the Department for Work and Pensions (DWP), is designed to provide extra financial relief during one of the most expensive times of the year.
Rising household bills, winter heating costs and everyday essentials continue to put pressure on low- and fixed-income households. This latest one-off payment aims to ease that burden as 2025 draws to a close.
Below is everything UK residents need to know, including who qualifies, when payments will arrive, how much people can expect, and what to do if the money does not appear.
Why the DWP Is Issuing This One-Off Payment
The cost of living remains a major concern across the UK. Despite inflation slowing compared to previous years, prices for food, energy and services remain significantly higher than pre-pandemic levels.
The government has acknowledged that pensioners, disabled people and low-income households are among the most affected. This one-off payment is part of a wider support approach to ensure vulnerable groups receive help before winter pressures peak and before the New Year begins.
Importantly, the payment is separate from regular benefit increases and does not replace ongoing entitlements.
Which Benefits Are Included
The DWP has confirmed that the payment covers people receiving a range of benefits. Eligibility depends on receiving at least one qualifying benefit during a specified assessment period.
Qualifying benefits include:
- State Pension
- Personal Independence Payment (PIP)
- Attendance Allowance
- Disability Living Allowance (DLA)
- Universal Credit
- Pension Credit
- Employment and Support Allowance (ESA)
- Income Support
- Carer’s Allowance
People receiving more than one benefit will still receive only one one-off payment, not multiple payments.
Who Is Eligible for the Payment
Eligibility is automatic for most people. You do not need to apply, register or contact the DWP if you already receive a qualifying benefit.
To qualify, you must:
- Be living in the UK
- Have been receiving a qualifying benefit during the DWP’s assessment window
- Have your benefit payment active and not suspended
Those who recently applied for benefits may still qualify if their claim is approved before the assessment period ends.
How Much Will the One-Off Payment Be
The exact payment amount depends on the benefit category and personal circumstances. The DWP has confirmed that this payment is non-repayable and tax-free.
While the department has not released a single flat rate for all recipients, payments are expected to range from several hundred pounds, depending on eligibility group.
Crucially:
- The payment does not reduce future benefit payments
- It does not affect benefit caps
- It does not count as income for means-tested benefits
When Payments Will Be Made
The DWP has confirmed that payments will be issued before the New Year, with most arriving in late December.
Payments will be made directly into the same bank account where you normally receive your benefits.
There will be no separate payment date letter for most recipients. Instead, the payment will appear automatically with a clear reference on bank statements.
How the Payment Will Appear in Your Bank Account
Many people worry they might miss the payment if they do not recognise it. The DWP has advised that the transaction reference will clearly indicate a government or DWP payment.
It may appear as:
- DWP COL
- DWP Support Payment
- Cost of Living Payment
- DWP One-Off Support
Exact wording can vary by bank.
Do You Need to Apply or Contact the DWP
No application is required.
If you already receive a qualifying benefit and your details are up to date, the payment will be made automatically.
The DWP has strongly advised against responding to emails, text messages or phone calls claiming to help you “claim” the payment. These are often scams.
The DWP will never ask for bank details by text or email.
What to Do If You Do Not Receive the Payment
If the payment does not arrive by early January, the DWP recommends waiting a few working days, as bank processing times can vary during the holiday period.
If the money still does not appear, you should:
- Check your bank statement carefully
- Confirm you received a qualifying benefit during the assessment period
- Contact the DWP directly using official contact details
Do not rely on third-party websites or social media posts claiming to resolve missing payments.
How This Payment Affects Other Support
This one-off payment is completely separate from other forms of help, including:
- Winter Fuel Payment
- Cost of Living Payments
- Council Tax Reduction
- Local authority hardship grants
Receiving this payment does not prevent you from qualifying for other support schemes.
Why Pensioners and Disabled People Are Prioritised
Pensioners and disabled people often face higher unavoidable costs, especially during winter. Heating homes for longer hours, medical equipment running costs and mobility needs all contribute to increased spending.
The government has recognised that these groups are more vulnerable to financial shocks, particularly during colder months.
This is why recipients of State Pension, PIP and related benefits are included in this pre-New Year payment.
Impact on Household Budgets
For many households, this one-off payment will help cover:
- Winter energy bills
- Food and grocery costs
- Travel expenses
- Emergency household repairs
- Seasonal expenses around Christmas and New Year
While it is not a long-term solution to rising living costs, it provides short-term relief when it is most needed.
Future Benefit Changes to Watch
The DWP has confirmed that further updates are expected in the new financial year, including:
- Annual benefit uprating
- State Pension increases under the Triple Lock
- Potential eligibility changes for some benefits
- Ongoing cost of living support reviews
Claimants are encouraged to stay informed through official government updates rather than relying on rumours.
Final Thoughts
This confirmed one-off payment offers timely support for millions of people across the UK. With rising costs continuing to affect everyday life, the payment provides welcome breathing space for pensioners, disabled people and low-income households as the year comes to an end.
If you receive State Pension, PIP or another qualifying benefit, keep an eye on your bank account in the coming weeks. For most people, the payment will arrive automatically, without any action required.
As always, make sure your personal details are up to date with the DWP and avoid unofficial messages claiming to help you access the payment.