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Home » Universal Credit households to receive new £320 Cost of Living payment this summer
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Universal Credit households to receive new £320 Cost of Living payment this summer

By staff28 July 2025No Comments3 Mins Read

The new cost of living payment is available next week, with local authorities set to hand out the cash to those who need it most. Here is how it’ll work

New £320 Cost of Living payments being handed to Universal Credit households
New £320 Cost of Living payments being handed to Universal Credit households

Households on Universal Credit are set to receive a new £320 summer Cost of Living payment with certain councils offering handouts ‘up North’. One council in the East Midlands is dishing out grants of up to £320, all thanks to the DWP’s Household Support Fund, which has seen councils distribute thousands to those feeling the pinch.

Residents of North Northamptonshire can snap up supermarket vouchers worth as much as £320 from August 4, as confirmed by the local authority, while Doncaster is also handing out £300 to those in dire need of funds. The City of Doncaster Council is stepping up to provide a one-off payment to residents who are on Housing Benefit, Local Council Tax Reduction, Universal Credit that includes housing costs, or means-tested free school meals.

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Smartphone with Universal Credit App
Families receiving Universal Credit could receive a bonus of up to £320(Image: John Lamb via Getty Images)

North Northamptonshire Council’s leader, Jason Smithers, said: “I am pleased that we once again have money from UK Government’s HSF through an extension”.

The spokesperson went on, saying: “We have opted to once again fund food for children on free school meals during the holidays, and ease the financial burden of back to school expenses. In addition, we will be able to help many other residents in the form of supermarket vouchers, to help with balancing finances. I would urge those to not miss out on the opportunity to apply”.

An that he “would like to take this opportunity to acknowledge the many community groups who have been instrumental in helping us use HSF to distribute funding where its most needed”.

“These have included charities and organisations providing all kinds of household support, such as help with emergency energy, white good replacement and provision of lower energy equipment to cook meals, as well as food parcels.”

“I know they are continuing to use HSF to help our most vulnerable residents and so would like to publicly thank them for their vital support.”

Since the beginning of the fiscal year in April, Universal Credit has reduced the amount of debt repayments taken from council benefits, reports Birmingham Live.

Now with a limit of 15 percent instead of 25, the ‘New’ Labour change aimed to return money back to the wallets of over a million households struggling with debt, according to Gov.uk. However, many remain unhappy with Starmer’s cuts, especially after the Welfare Cuts Bill passed on July 1.

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