As the UK continues to battle the effects of rising inflation, energy prices, and the cost of essential goods, the government has introduced a £450 Cost of Living Payment to support low-income and vulnerable households. This one-off payment is being distributed in May and June 2025 and is part of a wider plan to ease economic pressure on benefit recipients.
Confirmed by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC), the payment is designed to assist individuals receiving means-tested and disability benefits. The best part? No application is required—the funds are deposited automatically into eligible claimants’ benefit accounts.
What Is the £450 Cost of Living Payment?
This government-backed payment is a non-taxable financial support measure aimed at helping people cope with rising living costs. The £450 total is made up of two components:
- £301 for people receiving income-based benefits, such as Universal Credit or Pension Credit
- £150 for those receiving disability benefits, including PIP or DLA
Some individuals may qualify for both payments, receiving the full £450.
The payment is part of the UK’s ongoing response to the cost-of-living crisis, and unlike previous schemes, there is no need to apply or fill out any forms. If you meet the eligibility criteria, the payment is sent automatically.
Payment Breakdown at a Glance
| Category | Details |
|---|---|
| Total Payment | £450 (£301 + £150 if eligible for both) |
| Payment Timeline | May to June 2025 |
| Issuing Authority | DWP or HMRC |
| Application Requirement | None – issued automatically |
| Payment Method | Direct deposit into benefit account |
| Bank Transaction Label | “DWP COLP” or “HMRC COL Payment” |
| Tax Status | Non-taxable; does not impact existing benefits |
| Official Site | gov.uk |
Who Is Eligible for the £450 Payment?
You will be eligible to receive the £450 payment if you were receiving any of the following benefits during the expected qualifying period, likely between February and April 2025:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
Even if your benefits were temporarily reduced to zero (a “nil award”) due to deductions like rent or debt repayments, you may still qualify.
When Will the £450 Be Paid? [Payment Schedule]
The distribution of payments began in May 2025, and many eligible recipients will continue to receive them throughout June 2025. The timeline depends on which benefits you receive and which agency pays them.
Payment schedule by authority:
- DWP Benefits (e.g., Universal Credit, ESA): Mid-May to early June 2025
- HMRC Benefits (e.g., Tax Credits): Late May to mid-June 2025
Check your bank account for a transaction labeled “DWP COLP” or “HMRC COL Payment” to confirm receipt.
Didn’t Get Paid Yet? Here’s What to Do
If you believe you’re eligible but haven’t received the payment by the end of June, take the following steps:
- Review your benefit records to confirm you received one of the qualifying benefits during the eligibility period
- Check your bank account for the correct payment label
- Contact the DWP or HMRC, depending on which agency manages your benefits
- Keep your National Insurance number handy when contacting authorities
This will help resolve any payment issues quickly.
Why the Government Is Offering This Support
The £450 Cost of Living Payment is part of a broader effort to support UK households affected by ongoing inflation. Rising energy costs, higher food prices, and essential services have left many families stretched thin.
This payment is designed to provide immediate relief, especially for those already relying on income support and disability benefits. The goal is to protect the most vulnerable without requiring additional paperwork or delay.
Will There Be More Payments in 2025?
As of now, the £450 Cost of Living Payment is the only confirmed financial support for 2025. However, future support may be announced depending on economic conditions.
Citizens should pay attention to the Autumn Statement 2025, where the government may introduce further cost-of-living assistance, including potential energy rebates, housing support, or additional benefit supplements.
Final Thoughts: Check, Don’t Stress
The £450 Cost of Living Payment 2025 is an important step in helping UK households face economic challenges. It arrives automatically, requires no action from recipients, and will appear in bank accounts with DWP or HMRC payment references.
If you meet the benefit criteria and haven’t seen the payment by the end of June, reach out to the relevant agency with your details ready.
Keep your benefit account updated and monitor official government announcements for future relief efforts.
Frequently Asked Questions (FAQs)
Q1: Do I need to apply for the £450 Cost of Living Payment?
A: No. The payment is issued automatically to eligible individuals.
Q2: How will the payment appear in my bank account?
A: It will be labeled as “DWP COLP” or “HMRC COL Payment” depending on the issuing agency.
Q3: What if I haven’t received the payment yet?
A: Check your eligibility, review your bank records, and contact DWP or HMRC if needed.
Q4: Will there be more cost of living payments this year?
A: Currently, no additional payments have been confirmed, but updates may come later in 2025.
