New £130 Cost of Living Payment Announced for DWP Benefit Claimants
£130 Cost of Living Payment for DWP Benefits

Thousands of households across Manchester are set to receive a vital financial boost as a new £130 Cost of Living payment has been confirmed for people claiming specific benefits.

Who is eligible for the payment?

The targeted support is part of the Household Support Fund, a government initiative designed to help vulnerable families and individuals struggling with rising living costs.

To qualify for the one-off £130 payment, a household must be receiving both Council Tax Support and a qualifying disability benefit, such as Disability Living Allowance (DLA) or Personal Independence Payment (PIP).

Only one payment will be made per household for the entire period running from 1 April 2025 to 31 March 2026.

How and when will payments be made?

The payment process depends on how you currently pay your council tax. If you pay by Direct Debit, the £130 will be transferred directly into your bank account.

Payments to bank accounts are scheduled to be credited from 31 October 2025, and recipients should allow 3-5 days for the funds to clear, depending on their bank.

For those who pay by cash at a PayPoint, standing order, bank transfer, online, or have no council tax to pay, you will receive a Post Office Payout voucher by post. The distribution of these vouchers will begin in the week starting 3 November 2025.

What if you need more urgent help?

Manchester City Council has also highlighted its Welfare Provision Scheme (WPS) for residents in immediate crisis. A portion of the Household Support Fund, £40,000, has been allocated to this scheme, which can provide two payments within a 12-month period.

The council advises residents not to contact them about the £130 payment until after 15 November 2025, unless they are applying for urgent help via the WPS application form.

This announcement provides a crucial lifeline for many as the cost-of-living crisis continues to put pressure on household budgets.