Department for Work and Pensions (DWP) has confirmed a new £500 one-off support payment that will be issued in October 2025 to help millions of households facing rising living costs. With energy bills, food prices, and housing expenses still putting pressure on families and pensioners, this announcement has been welcomed across the UK.
If you are wondering who qualifies, when payments will be made, and how it affects your finances, this guide covers everything in simple terms.
Why the £500 Payment is Being Introduced
The cost of living remains a significant challenge for many UK households in 2025. While inflation has started to stabilise compared to previous years, essentials such as rent, energy, and groceries remain at historically high levels.
The government recognises that many low-income families, pensioners, and people on disability benefits still struggle to manage daily expenses. To provide direct relief, the DWP will issue a £500 one-off payment to eligible claimants in October 2025.
This is not a loan or an advance—it is a tax-free grant designed to give households extra breathing space before winter.
Who is Eligible for the £500 Support Payment?
Eligibility for the October 2025 £500 payment is tied to certain benefits and circumstances. If you currently receive one of the following benefits, you may qualify automatically:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
In addition, pensioners on State Pension who also receive Pension Credit will be included.
It is important to note that you do not need to apply separately. The DWP will check eligibility automatically through its benefit systems. If you qualify, the payment will be made directly into your bank account.
Payment Dates – When Will You Receive the £500?
The DWP has announced that payments will begin from Monday, 14 October 2025 and will continue until the end of the month. Most eligible households are expected to receive the money by 31 October 2025.
- Universal Credit and legacy benefit claimants will see the payment made to the same account where they usually receive their benefits.
- Pensioners on Pension Credit will receive the payment alongside their regular pension or benefit payment.
If you qualify but have not received the money by early November 2025, you are advised to contact the DWP or HMRC (for tax credit claimants) to ensure your details are up to date.
How the Payment Will Be Made
Payments will be made automatically, so you will not need to submit a claim. The £500 support grant will appear in your bank account as a separate line, similar to how previous cost-of-living payments were issued.
For example, your statement might show:
“DWP COL Payment” or “HMRC Support Payment”
No deductions will be made from this payment, and it will not affect the amount you usually receive from benefits.
Will the Payment Affect Your Benefits?
The £500 one-off support is completely separate from your benefits. This means:
- It will not reduce your Universal Credit or Pension Credit payments.
- It will not count as income when calculating entitlement for other benefits.
- It will not be taxable.
The government has made it clear that this payment is a top-up to help households manage extra costs, not a replacement for existing support.
Support for Pensioners
Older people are among the hardest hit by rising living costs, particularly with heating and energy bills during the winter months.
Pensioners who receive Pension Credit will automatically qualify for the £500 payment in October 2025. This is in addition to other support such as:
- Winter Fuel Payment (worth up to £600)
- Cold Weather Payments (if triggered in your area)
- Warm Home Discount
For many pensioner households, this means extra help of more than £1,000 in total to cover winter expenses.
Families with Children – What to Expect
Households receiving Child Tax Credit or Universal Credit with children will benefit too. The £500 payment is per household, not per child, but it still provides vital support for families dealing with back-to-school costs, higher food prices, and childcare expenses.
Many charities and campaigners have welcomed the payment, but they continue to push for more permanent increases in child-related benefits to help families manage ongoing costs.
Why Some People Won’t Qualify
Not everyone will be eligible for the £500 support. You will not qualify if:
- You are not receiving any of the listed benefits.
- Your income is above the threshold for means-tested support.
- You have recently stopped claiming benefits before the qualifying date.
The government has confirmed that eligibility will be based on benefit claims made between 9 September and 8 October 2025. If you were not receiving qualifying benefits during that time, you will miss out.
How This Payment Fits with Other Support
The £500 October support is just one part of a wider package of financial help being offered by the government. Other forms of support in 2025 include:
- Energy Price Guarantee adjustments to keep bills lower.
- Council Tax Support for low-income households.
- Housing Benefit and Local Housing Allowance increases.
- Free School Meals expansion in some local councils.
Together, these measures aim to give families, pensioners, and disabled people more stability as the country continues to recover from the cost-of-living crisis.
What To Do If You Haven’t Received Your Payment
If you believe you are eligible but haven’t received your £500 by the end of October 2025, here’s what you should do:
- Check your bank statement carefully, as payments may appear under different names.
- Wait until at least 31 October 2025, as payments are being staggered.
- Contact the DWP using the official helplines if your payment has not arrived by 7 November 2025.
Make sure your bank details are correct on your benefits account to avoid delays.
Reactions to the £500 Payment
Public response has been largely positive, with many welcoming the government’s recognition of ongoing struggles. However, some charities argue that one-off payments are only a short-term fix. They stress the need for longer-term reforms such as permanently raising benefit levels and improving housing support.
Still, for millions of households, this £500 boost will arrive at a crucial time before winter.
Final Thoughts
The DWP £500 one-off support payment in October 2025 is a much-needed lifeline for households struggling with rising living costs. Whether you are a pensioner, a family with children, or a low-income worker, this payment is designed to give you extra financial security before winter sets in.
The key points to remember are:
- Payments start 14 October 2025.
- You must be on qualifying benefits to receive it.
- The payment is tax-free, automatic, and won’t affect your benefits.
If you think you qualify, make sure your details are up to date with the DWP or HMRC. For many households, this £500 will provide just enough breathing room to get through the colder months with a little less stress.