Households sent free £85 cost of living payment in bank accounts | Personal Finance | Finance
UK households receiving certain benefits are being handed a free £85 cost of living payment from October.
The payment comes as part of the government’s Household Support Fund which provides local councils across England with a share of a funding pot worth £742 million. The fund helps vulnerable homes pay for essential living costs over the winter months, including energy bills, food and other essentials. The funding is allocated between now and March 31, 2026, and it is up to local councils to independently decide how to share the cash, so depending on where you live, there may be different criteria to qualify for the support. In West Yorkshire, Calderdale Council has confirmed it will be issuing payments of up to £85 to eligible households from October 1, 2025 until March 31, 2026. To qualify for the payment, households must be receiving Council Tax Reduction and Housing Benefit.
Households with children or a known disability will receive one payment of £85, and single people or couples with no children or disability will receive a payment of £40.
Households that meet the eligibility criteria can now register for the payment online via the Calderdale Council website and should allow seven working days for the cash to arrive in bank accounts.
The council said: “We have received funds from the Department for Work and Pensions to support households in hardship. Funds cover the period from April 2025 to March 2026.
“All eligible households in receipt of Council Tax Reduction and Housing Benefit can now register. You will receive:
- Households with children: £85
- Households with known disability: £85
- Singles/couples with no children or disability: £40
“For households with children and a known disability, only one payment of £85 can be awarded. Please allow seven working days for the payment to arrive in your bank before you contact us.”
The council adds that anyone can apply for extra financial support through its additional Discretionary Scheme, but you must be liable to pay Council Tax and/or energy bills at a Calderdale address, and you must provide your last two bank statements for yourself and your partner for all accounts held.
A maximum of two awards for £85 each will be considered as part of this scheme. The application period for the first award has now closed, but the second period is open between October 1, 2025 and March 31, 2026.
As Household Support Fund cash is distributed independently by local councils in England, it means that the cost of living support available will vary by location, with different vouchers or grants up for grabs up and down the country.
The payments may also be issued at different times depending on where you live, so it’s possible for some to receive the support in time for Christmas, while others may have a longer wait.
The DWP says there may also be differences in who the money is given to and if or how you need to apply for the support, as some local councils opt to share the money out through local charities and community groups, while some limit household applications to one per year.
For example, households in Staffordshire can get a one off £300 utility payment made direct to their utility provider via the scheme, while residents in Calderdale can get a maximum of two payments of £85, amounting to £170 worth of support in total.
North Yorkshire Council is issuing £190 cost of living payments to eligible households from October 8 to spend across nine different supermarkets, including Asda, Morrisons, Sainsbury’s, Tesco and M&S.
Doncaster Council will pay eligible households up to £300 towards food costs, while other households can qualify for a £100 payment to go towards energy bills.
In West Yorkshire, Leeds City Council is issuing payments of up to £120 to low income households receiving Council Tax Support from October 13, while households in Nottingham can get energy vouchers worth £98 and supermarket vouchers worth £75, amounting to £173 worth of support.
