Millions of low-income households on Universal Credit are set to benefit from new £320 Cost of Living payments this summer.
Funded by the Department for Work and Pensions (DWP) via the Household Support Fund (HSF), this support aims to ease rising costs during the school holidays and back-to-school period.
Local councils across the UK—including North Northamptonshire and Doncaster—have confirmed cash grants and supermarket vouchers for qualifying households.
What Is the £320 Cost of Living Payment?
The payment is not a universal handout but a targeted benefit issued through local authorities to those most in need—primarily Universal Credit recipients, those on means-tested free school meals, Housing Benefit, or Council Tax Reduction.
Payment Overview:
| Location | Payment Type | Amount | Eligibility |
|---|---|---|---|
| North Northamptonshire | Supermarket vouchers | Up to £320 | Universal Credit, Free School Meals |
| Doncaster City Council | One-off cash support | £300 | UC with housing element, Housing Benefit, or Council Tax Help |
These payments are intended to assist with food, school costs, and essential bills, especially during the cost-heavy summer months.
Who Is Eligible for the £320 Support?
Eligibility criteria vary slightly by council, but generally, applicants must:
- Receive Universal Credit, particularly the housing element
- Be on Housing Benefit
- Be receiving Local Council Tax Reduction
- Have children on means-tested free school meals
- Demonstrate a low income or financial hardship
Many authorities also give priority to families with children, pensioners, and people with disabilities.
How to Apply for the Payment
While some councils issue automatic payments, many require online applications. It’s important to check your local council website for details.
- North Northamptonshire residents can apply from August 4
- Doncaster residents may receive payments automatically or after applying
Supermarket vouchers can typically be used at major retailers like Tesco, Sainsbury’s, Morrisons, M&S, and Waitrose.
Why This Support Matters
The Household Support Fund, launched by the DWP, was extended into 2025 to help with persistent inflation and rising energy prices. According to Jason Smithers, Leader of North Northamptonshire Council:
“We’ve opted to fund food for children on free school meals during the holidays and ease back-to-school expenses. Supermarket vouchers will help many households balance their finances.”
Additionally, the scheme has helped distribute white goods, low-energy cooking appliances, and emergency heating support to the most vulnerable.
Additional Cost of Living Help for Universal Credit Claimants
Besides the £320 payment, Universal Credit claimants may also qualify for:
- £300 automatic DWP payments (for those receiving 14 listed benefits)
- Social tariffs for cheaper broadband and phone contracts
- Free school meal holiday vouchers
- Council tax discounts
- Warm Home Discount Scheme
Many households remain unaware they’re eligible for extra help. Local councils encourage residents to check their eligibility and apply as soon as possible.
The £320 Cost of Living support is a timely relief for thousands of struggling families during the summer holiday season. If you’re on Universal Credit or related benefits, it’s essential to act quickly and check if your local council is distributing this support.
With rising food and energy prices, even a few hundred pounds can make a meaningful difference. Take advantage of this lifeline from your local authority to ease financial stress in August.
FAQs
Is the £320 payment automatic for all Universal Credit claimants?
Not always. Some councils issue payments automatically, while others require online applications. Check your local authority website.
What can I spend the supermarket vouchers on?
Vouchers can be used at most major UK supermarkets for essential groceries, school supplies, or household goods.
Can I receive the payment if I’m on Housing Benefit but not Universal Credit?
Yes, many councils include Housing Benefit and Council Tax Reduction recipients in the eligibility list.