The rising cost of living in the UK has left many households struggling to manage daily expenses. As inflation continues to put pressure on fuel, food, and energy prices, millions are keeping a close eye on any new financial support from the government. Recently, social media and several online platforms have been buzzing with claims that a £500 Cost of Living Payment is coming in August 2025. But is there any truth to it?
In this article, we explore what the Department for Work and Pensions (DWP) and official sources have said, what payments are actually scheduled, and how you can find out what support you’re eligible for. Let’s separate facts from rumours.
Where Did the £500 Claim Come From?
The rumour of a new £500 payment started spreading across Facebook, WhatsApp groups, and online forums. Some messages claim that the payment will be deposited automatically into the bank accounts of pensioners, Universal Credit claimants, and low-income households starting from August 2025. However, most of these posts do not cite any official source or government announcement.
This isn’t the first time such claims have gone viral. In previous years, similar rumours about large cost of living payments have surfaced just before scheduled benefit reviews, leading to confusion and false hopes.
What Has the Government Actually Announced?
As of now, no official confirmation has been made by the DWP or HM Treasury regarding a £500 cost of living payment for August 2025. The latest confirmed payment is the £300 Cost of Living Payment, which is expected to be issued in October 2025 as part of the support for eligible low-income households.
In 2022 and 2023, the government issued multiple cost of living payments to help struggling families. These included:
- £650 for Universal Credit claimants
- £300 for pensioners
- £150 for those on disability benefits
These payments were part of the government’s response to the energy crisis and the inflation surge, and were clearly announced on GOV.UK and mainstream media platforms.
For 2025, the government has not announced any £500 payment under any existing benefit scheme.
Who Is Eligible for the October 2025 Payment?
If you’re wondering whether you qualify for the £300 Cost of Living Payment in October 2025, here are the basic criteria:
You may be eligible if you are receiving one or more of the following:
- Universal Credit
- Pension Credit
- Income-related ESA or JSA
- Income Support
- Tax Credits (Working or Child Tax Credit)
To receive the payment, you must have been entitled to a qualifying benefit during a specific assessment period. The DWP usually confirms these dates a few weeks before the payment starts.
If you receive only new-style ESA, contributory benefits, or Housing Benefit, you may not qualify for the £300 payment unless you also receive one of the eligible benefits listed above.
Can You Trust Viral Messages?
Many viral claims are misleading or completely false. They often rely on the hope and desperation of people struggling with financial pressures. It’s always best to check:
- GOV.UK for official payment announcements
- DWP’s social media pages
- Reputable news sources like BBC, Sky News, or The Guardian
If a message is not linked to an official source, it’s most likely false. Scammers also use fake messages to trick people into sharing personal information or clicking on dangerous links.
What Support Is Actually Available?
Although there is no confirmed £500 payment, several forms of financial support are still active in the UK. These include:
- Energy Bill Support: Some households may still receive energy rebates or discounts through local councils or energy providers.
- Household Support Fund: Local councils across England have been allocated funds to support vulnerable households. You can apply through your local authority’s website.
- Pensioner Cost of Living Payment: Pensioners will receive an extra £300 during winter as part of the Winter Fuel Payment scheme.
- Disability Cost of Living Payment: An additional £150 payment for those on disability-related benefits.
If you’re not sure what you’re entitled to, use the benefits calculator available on the official GOV.UK website or consult a local Citizens Advice Bureau.
What the DVLA and HMRC Have to Say
Interestingly, some social media posts also dragged HMRC and DVLA into the conversation, claiming they would be involved in verifying payment eligibility for this supposed £500 payment. There is no basis to these claims.
Both HMRC and DVLA have no role in distributing cost of living payments. HMRC only administers tax credits and National Insurance, while DVLA handles driving licences and vehicle registrations. This further proves that these viral claims are not rooted in any official framework.
How to Protect Yourself from Scams
Unfortunately, false claims about government payments often lead to online scams. If you get a message that sounds too good to be true, follow these steps:
- Don’t click on suspicious links
- Never share your National Insurance number or bank details with unverified sources
- Report scams to Action Fraud UK
- Enable spam filters on your email and SMS
You can also forward suspicious emails to report@phishing.gov.uk to help authorities crack down on fraudulent campaigns.
What Are the Chances of a New Payment?
While nothing has been confirmed for August 2025, that doesn’t mean the government won’t introduce new support later this year. Much will depend on:
- Inflation trends
- Energy prices this winter
- Political pressure and upcoming elections
If inflation rises again or energy prices spike during winter 2025, the government may consider new financial aid packages. However, these will be formally announced and passed through Parliament before being distributed.
Stay Updated Through Official Channels
To ensure you don’t miss out on real government support:
- Sign up for DWP email alerts via GOV.UK
- Follow @DWPgovuk on Twitter (now X)
- Subscribe to alerts from your local council
- Bookmark the cost of living support page on GOV.UK
This is the best way to stay informed about real payments, benefit changes, and eligibility updates – without falling for hoaxes.
Final Verdict
To summarise, there is currently no £500 Cost of Living Payment scheduled for August 2025. The viral messages spreading this claim are unverified and misleading. The only confirmed upcoming support is the £300 payment in October, targeted at households receiving certain low-income benefits.
If you’re facing financial hardship, you should explore other verified forms of assistance available through councils, DWP, or charitable organisations. Stay cautious, stay informed, and don’t rely on social media posts that lack credible sources.
