As the year draws to a close, many households across the UK are carefully checking their bank accounts. For millions of people, the weeks before New Year can bring more than just festive spending pressures – they can also bring important one-off payments from the government and public bodies.
If you receive benefits, a pension, tax credits, or certain support payments, there are several deposits scheduled to arrive before 31 December. Some are automatic, some depend on eligibility, and others are time-limited top-ups designed to help with winter costs.
Below is a clear, up-to-date guide to all the one-off payments being paid before New Year, who qualifies, how much to expect, and when the money should land in your bank.
Why one-off payments matter before New Year
For many families, December is financially demanding. Heating bills rise, food costs increase, and budgets are stretched. One-off payments are designed to:
- Ease short-term cost-of-living pressure
- Support pensioners and low-income households
- Provide targeted help without changing long-term benefit rates
Unlike regular benefits, these payments usually do not need to be repaid and do not affect future entitlements.
Cost of Living Payments landing before New Year
Several Cost of Living payments are scheduled to reach eligible claimants before the end of December.
These payments are issued by the Department for Work and Pensions and HMRC, depending on the benefit you receive.
Eligible benefits include:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
If you were entitled to one of these benefits during the qualifying period, the payment is automatic.
How much is the Cost of Living payment?
The amount depends on the specific payment phase you qualify for. In most cases, households can expect hundreds of pounds, paid as a single deposit into the same bank account where you normally receive benefits.
The payment reference on bank statements often appears as:
- “DWP COL”
- “HMRC COLS”
Payment dates for Cost of Living support
Most Cost of Living payments due before New Year are expected to arrive:
- In the final two weeks of December
- On weekdays only, excluding bank holidays
If your usual payment date falls on a weekend or holiday, the money usually arrives earlier, not later.
Winter Fuel Payment top-ups
Pensioners should also keep an eye out for Winter Fuel Payments, which are typically paid between November and December.
This payment helps older people manage higher heating costs during winter and is not means-tested.
Who qualifies for Winter Fuel Payment?
You may qualify if:
- You were born on or before the qualifying date
- You lived in the UK during the relevant week
- You receive the State Pension or another social security benefit
Most payments are made automatically, without the need to apply.
How much is the Winter Fuel Payment?
Amounts vary depending on circumstances, but payments usually range between £100 and £300, with higher amounts for households that include someone over State Pension age.
Some pensioners also receive additional top-ups if they qualify for Pension Credit.
Cold Weather Payments before year end
Cold Weather Payments are triggered when temperatures drop below a set level for seven consecutive days in specific postcode areas.
These payments are:
- Worth £25 per qualifying period
- Paid automatically
- Issued to people on certain benefits
If your area experienced qualifying cold weather in December, the payment may arrive before New Year.
Disability Cost of Living payments
People receiving disability benefits may also be due a one-off payment before the end of the year.
This applies to those receiving:
- Personal Independence Payment
- Disability Living Allowance
- Attendance Allowance
These payments are separate from standard Cost of Living payments and are designed to recognise the extra costs faced by disabled people.
State Pension related one-off deposits
While the State Pension itself is not a one-off payment, some pensioners receive additional lump sums before New Year due to:
- Backdated entitlement corrections
- Pension Credit adjustments
- Delayed processing of previous claims
These deposits can appear unexpectedly and may be labelled simply as “DWP”.
Universal Credit additional payments
Some Universal Credit claimants may see extra one-off deposits before the end of December due to:
- Assessment period corrections
- Housing cost recalculations
- Administrative back payments
These are not new benefits but owed amounts being cleared before the year ends.
HMRC tax credit payments before New Year
Households receiving tax credits should also be alert for deposits from HM Revenue and Customs.
These may include:
- End-of-year adjustments
- Backdated awards
- Overpayment corrections
HMRC payments often show as “HMRC TAX CR” on bank statements.
Local council hardship payments
Some local councils provide discretionary one-off payments funded through household support schemes.
These may cover:
- Energy costs
- Food vouchers
- Emergency financial assistance
Eligibility rules vary by council, and payments may be made directly to bank accounts or issued as vouchers.
When to expect the money in your bank
Most one-off payments due before New Year will arrive:
- Between mid-December and 31 December
- During normal banking hours
- Earlier if your usual payment date falls on a holiday
Banks typically process government payments overnight, meaning funds are often available first thing in the morning.
What to do if you do not receive a payment
If you believe you qualify but do not receive a payment:
- Check your eligibility during the qualifying period
- Allow a few working days for delays
- Review your bank statement references carefully
Only contact DWP or HMRC if the payment window has fully passed and you are certain you met the criteria.
Will these payments affect other benefits?
In most cases, one-off Cost of Living and winter payments:
- Do not count as income
- Do not reduce other benefits
- Do not need to be declared
They are designed as additional support, not replacements.
Final thoughts before New Year
The final weeks of the year can bring welcome financial relief for millions of UK households. Whether you are a pensioner, a low-income worker, a family on Universal Credit, or someone receiving disability support, it is worth keeping a close eye on your bank account.
Many of these one-off payments are automatic, meaning the money can arrive without warning. Knowing what to expect helps you plan, budget, and enter the New Year with a little more financial breathing room.
If you rely on benefits or pensions, December is one of the most important months of the year to stay informed.