Millions of Britons are asking the same question: is there a new Cost of Living Payment in 2026? For most of this year, the answer was a flat no — the Government’s official position was that the DWP payment scheme ended in February 2024 and nothing new was planned. But that position is now shifting. Andy Burnham, who became Prime Minister on July 20, has made cost-of-living help the defining promise of his first days in office, has already cut VAT on household electricity bills and restored the £2 bus fare cap, and is reported to be preparing a fuller package of measures within his first fortnight — with an emergency Budget not ruled out. Here is exactly what has been announced, what is only reported so far, and whether direct cash payments could return.
Quick Answer: Is There a New Cost of Living Payment in 2026?
No new DWP Cost of Living Payment has been announced as of July 24, 2026. The last direct payment — the £299 instalment — was made in February 2024, and GOV.UK still lists no further payments. However, the new Prime Minister has announced other cost-of-living measures in his first week, including removing VAT from household electricity bills and bringing back the £2 bus fare cap, with a wider support package reportedly due within days. Any return of direct payments would be confirmed on GOV.UK first — be wary of any text or email claiming you must “apply” or “claim” a payment, as the genuine payments were always automatic.
What Andy Burnham Has Announced So Far
Andy Burnham entered Downing Street on Monday, July 20, promising in his first speech to give households “breathing space” — and moved unusually quickly. Within his first week, the new Government announced:
VAT removed from household electricity bills. Announced on Burnham’s second day in office, this cuts the tax charged on domestic electricity, trimming bills for every household in the country. Economists have broadly welcomed the move as a simple saving that also mechanically nudges inflation lower, while noting the Government must set out at the next Budget how the measure will be paid for.
The £2 bus fare cap restored. The cap on single bus fares in England — a policy Burnham championed for years as Mayor of Greater Manchester — is being brought back, cutting commuting costs for millions who rely on buses.
A £100 million package for pubs and venues. Pubs, clubs and live music venues in England will receive a 20% reduction in business rates from April, aimed at keeping community spaces affordable and open.
Digital ID scrapped. Burnham cancelled the previous government’s digital ID programme, with his office saying the decision is about refocusing government on “delivering change people can feel in their everyday lives.” Analysts have pointed out that because the programme was unfunded, scrapping it does not by itself free up new money for cost-of-living measures.
What’s Coming Next: A Package Within a Fortnight?
According to an exclusive report by The Sunday Times’ political editor, Burnham is preparing to unveil a package of cost-of-living measures within his first two weeks as Prime Minister, with energy and transport costs the main focus — and his team has not ruled out an emergency Budget.
The Government has said that longer-term measures will need to be funded at the Budget, and that it intends to stick to the fiscal rules set out by former Chancellor Rachel Reeves. That commitment matters, because the money questions are real: opposition figures and fiscal experts have questioned how the promises will be paid for, with the Treasury estimated to need billions in savings and reallocations elsewhere. Shadow Chancellor Mel Stride accused the new Government of “playing fast and loose” with the public finances just one day in.
One helpful backdrop for the new Prime Minister: UK inflation cooled more than expected in June, giving households — and the Treasury — slightly more room to breathe.
Will Direct DWP Payments Come Back?
This is the question millions want answered, so here is the honest state of play:
- Nothing confirmed. No new one-off DWP payment has been announced, and GOV.UK continues to state that no further Cost of Living Payments are planned.
- The signals point elsewhere — for now. Everything announced or reported so far targets bills directly (electricity VAT, bus fares) rather than one-off cash transfers. Reports on the coming package emphasise energy and transport, not DWP payments.
- But the door is not closed. A new Prime Minister elected on a cost-of-living promise, a possible emergency Budget, and a full Budget later in the year all create moments where direct support could return, particularly for households on means-tested benefits ahead of winter.
If a new payment is ever announced, it will appear on GOV.UK and be paid automatically to eligible households — exactly as the old scheme worked. You will never need to apply through a link in a text message or email; messages like that are scams designed to steal bank details, and they surged every time a genuine payment was announced in the past.
What Happened to the Old Cost of Living Payments?
For readers wondering whether they missed something, here is the full history of the scheme:
| Period | Payment | Who Received It |
|---|---|---|
| 2022 | £650 (two instalments, first from July 14) | Households on means-tested benefits |
| 2022 | £150 disability payment | People on qualifying disability benefits |
| 2022 | £400 energy bill discount | All households |
| 2023–24 | £900 (three instalments: £301, £300, £299) | Households on means-tested benefits |
| February 2024 | Final £299 instalment (paid Feb 6–22) | Households on means-tested benefits |
Payments went automatically to people receiving Universal Credit, Pension Credit, income-based JSA, income-related ESA, Income Support or tax credits. The final instalment landed in February 2024, and the scheme closed. Receiving those benefits today does not create entitlement to any new payment.
What Cost-of-Living Help Exists Right Now (2026)
Even before Burnham’s new measures take full effect, several forms of support are already in place this year:
Energy bills. Ofgem’s price cap fell by 7% in April 2026, and households are receiving an average £150 reduction in energy bills, applied automatically — on top of the Warm Home Discount for eligible low-income households. The new VAT cut on electricity comes on top of this.
Winter Fuel Payment 2026/27. Paid to pensioners born on or before June 27, 1960 — and unlike recent years, it now goes to all pensioners, not only those on Pension Credit. Those with annual income above £35,000 will have it reclaimed through the tax system. The qualifying week is September 21–27, 2026.
The Crisis and Resilience Fund. From April 2026 this replaced the Household Support Fund in England. It is run by local councils and can help with essentials such as food, energy, water and housing costs — support is discretionary, so check your own council’s website for how to apply. Scotland, Wales and Northern Ireland run their own equivalent schemes.
Everyday costs. Rail fares have been frozen, prescription charges in England remain under £10, and Child Benefit pays £27.05 a week for a first child and £17.90 for each additional child in 2026/27.
FAQ: Cost of Living Payments 2026
Is there a new Cost of Living Payment in 2026?
No. As of July 24, 2026, no new DWP Cost of Living Payment has been announced, and GOV.UK states none are planned. The new Government has instead cut VAT on electricity bills and restored the £2 bus fare cap, with a wider package reportedly imminent.
What has Andy Burnham announced to help with the cost of living?
In his first week as Prime Minister: VAT removed from household electricity bills, the £2 cap on single bus fares restored, and a £100 million package cutting business rates by 20% for pubs, clubs and music venues in England from April. A fuller package focused on energy and transport is reported to be coming within his first fortnight.
Will there be an emergency Budget in 2026?
Possibly. Burnham’s team has not ruled one out, according to Sunday Times reporting. The Government has said longer-term measures will be funded at the Budget while sticking to existing fiscal rules. Nothing is confirmed yet.
When was the last DWP Cost of Living Payment?
The final £299 instalment was paid between February 6 and 22, 2024, completing the £900 package for 2023/24. The scheme then closed.
Who gets the Winter Fuel Payment in winter 2026/27?
Pensioners born on or before June 27, 1960, with the payment now going to all pensioners rather than only those on Pension Credit. Those earning over £35,000 a year will have it clawed back through tax. The qualifying week is September 21–27, 2026.
How can I get help with bills right now?
Check your council’s Crisis and Resilience Fund (England) or your national equivalent, make sure you are claiming all benefits you are entitled to — Pension Credit remains heavily underclaimed — and check whether you qualify for the Warm Home Discount. Support is discretionary and varies by area.
How do I spot a Cost of Living Payment scam?
Genuine payments were always automatic — you never had to apply. Any text, email or call asking you to click a link, “claim” a payment or share bank details is a scam. Real announcements appear on GOV.UK.
