Starting next week, thousands of UK households will begin receiving a £120 cost of living payment to help with rising energy and food costs.
The payment is part of the government’s Household Support Fund, a £742 million package designed to support low-income families and vulnerable individuals across England through March 2026.
Each local council will distribute its share of the fund, meaning eligibility criteria, payment methods, and dates can differ depending on where you live.
The aim of the scheme is to ensure families have extra financial help ahead of the winter season.
Why the Payment Is Being Made
The UK Government launched the latest round of the Household Support Fund to help people manage essential costs during a period of high inflation and increased living expenses.
According to the Department for Work and Pensions (DWP), more than 8 million households across England qualify for support, especially those already receiving Council Tax Support or other low-income assistance.
The fund ensures that local authorities can address community needs by issuing direct cash payments, vouchers, or food and energy support.
Key Details: When and How Payments Will Be Made
One of the earliest examples comes from Leeds City Council, which confirmed that eligible households will begin receiving their £120 cost of living payment from Monday, 13 October 2025.
Payments will be made through Post Office vouchers sent directly to qualified recipients.
Households will receive the funds by the end of November 2025, giving families time to prepare for the winter months.
Here’s what residents in Leeds and similar council areas can expect:
| Category | Payment Details |
|---|---|
| Eligibility date | Must receive Council Tax Support as of 13 October 2025 |
| With dependent children | £120 payment |
| Without dependent children | £55 payment |
| Payment method | Post Office voucher sent by mail |
| Expected payment window | 13 October – 30 November 2025 |
| Support period covered | April 2025 – March 2026 |
| Additional emergency support | Available for food, energy, or household essentials through Local Welfare Support Schemes |
These payments are designed to reach those most affected by rising costs, particularly low-income families with children.
Variations Across England
Support amounts vary as each local council manages its own Household Support Fund.
- Staffordshire: £300 one-off payment to utility providers.
- Calderdale: Two payments of £85 (£170 total).
- Doncaster: £300 for food and £100 for energy.
- Nottingham: £173 in energy and supermarket vouchers.
- Manchester: £130 for residents on Council Tax Support and a disability benefit.
These differences show how councils tailor support to meet local community needs.
How to Check Eligibility and Apply
To get the £120 cost of living payment, you must:
- Receive Council Tax Support (as of your council’s set date).
- Live in an eligible local authority area in England.
- Meet income and household criteria set by your council.
Most councils automatically identify eligible households, so no application is needed.
However, some may ask you to apply or register through their local welfare support schemes.
What the Payment Covers
The £120 cash boost is designed to help cover immediate essentials, such as:
- Energy bills during the colder months.
- Groceries and daily necessities.
- Emergency household repairs or appliance replacements.
Additional help is available for households in crisis situations. Those facing urgent financial hardship can contact their council’s Local Welfare Support Scheme to apply for extra funding or food and energy vouchers.
The £120 cost of living payment is a crucial part of the UK Government’s ongoing efforts to support vulnerable households as prices remain high.
With funding distributed through the Household Support Fund, councils can directly address local needs, ensuring help reaches families most in need.
If you’re currently receiving Council Tax Support or struggling with household expenses, check your local council’s announcements to confirm eligibility.
These payments — whether £120, £55, or through other local schemes — are designed to lighten the financial load this winter and keep families warm, fed, and secure.
FAQs
When will I receive my £120 cost of living payment?
Payments start from 13 October 2025, with most vouchers distributed by the end of November 2025.
Do I need to apply for this payment?
In most areas, eligible households are automatically identified through Council Tax Support records. Some councils may open application forms for additional support.
Will the £120 payment affect my existing benefits?
No. The payment is non-taxable and does not affect other benefit entitlements.