As the UK continues to deal with rising prices for food, energy, and essential goods, the government has rolled out a £450 Cost of Living Payment to support those hit hardest by inflation. This one-off payment, confirmed by the Department for Work and Pensions (DWP), is part of a broader plan to assist low-income households and people on certain benefits.
While the first payments began in May 2025, many eligible claimants will receive their support in June 2025, depending on their benefit type and payment cycle. The best part? There’s no need to apply—the payment is issued automatically if you meet the criteria.
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What Is the £450 Cost of Living Payment?
The £450 payment is part of the government’s financial assistance program designed to help people manage the ongoing cost-of-living crisis. It is non-taxable, doesn’t impact existing benefits, and is deposited directly into recipients’ regular benefit accounts.
Unlike past relief schemes that required manual applications, this payment will be processed automatically for those who qualify based on their benefits.
| Detail | Information |
|---|---|
| Payment Amount | £450 total (£301 + £150 if eligible) |
| Payment Period | May to June 2025 |
| Issuing Authority | DWP or HMRC |
| Eligibility | Claimants of means-tested & disability benefits |
| Application Needed | No – Paid automatically |
| Payment Method | Direct deposit to existing benefit account |
| Bank Label | “DWP COLP” or “HMRC COL Payment” |
| Impact on Benefits | Non-taxable, does not affect benefit levels |
| Official Website | gov.uk |
How Is the £450 Paid?
The total £450 support is split into two parts:
- £301 for people receiving income-based benefits such as Universal Credit or Pension Credit.
- £150 for those receiving disability benefits like PIP or DLA.
Some individuals may qualify for both payments, receiving the full £450.
Who Is Eligible For £450 Cost of Living Payment?
You will qualify for the 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 JSA
- Income-related ESA
- Income Support
- Child Tax Credit
- Working Tax Credit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
People who received a nil award during the qualifying period may still be eligible, especially if deductions were made for rent or debts.
When Will the £450 Be Paid?
Although some payments started in May, many are still being issued in June 2025, especially for those receiving tax credits through HMRC or experiencing processing delays.
- DWP benefits (e.g. Universal Credit, ESA): Payments between mid-May and early June
- HMRC benefits (e.g. Tax Credits): Payments expected between late May and mid-June
Check your bank account for a transaction labeled “DWP COLP” or “HMRC COL Payment” depending on who issued it.
What If You Don’t Receive It?
If you’re expecting the payment but haven’t received it by late June, follow these steps:
- Review your benefit history to confirm eligibility during the qualifying period.
- Double-check your bank account for a separate transaction labeled “DWP COLP” or “HMRC COL”.
- Contact DWP (for UC, ESA, etc.) or HMRC (for Tax Credits).
- Have your National Insurance number ready to speed up the process.
Why Is This Support Being Given?
The UK government launched the £450 Cost of Living Payment to relieve pressure on vulnerable households facing higher living costs. With energy prices still elevated and inflation impacting essential goods, this payment acts as a critical safety net for those already relying on benefits.
Will There Be More Payments in 2025?
As of now, this is the only confirmed Cost of Living Payment for 2025. Future support could be announced depending on economic conditions. Keep an eye on the Autumn Statement 2025 for any updates on additional support for energy bills, housing, or other living expenses.
Final Thoughts
The £450 Cost of Living Payment 2025 brings essential relief to millions of UK households struggling to keep up with everyday costs. If you’re receiving qualifying benefits, keep an eye on your account this June. No action is needed—just make sure your benefit information is up to date.
If you haven’t received your payment by the end of June but believe you’re eligible, don’t hesitate to contact DWP or HMRC for help.
FAQ’s
Q1 : Do I need to apply for the £450 Cost of Living Payment?
Answer = No, it will be issued automatically if you’re eligible.
Q2 : How will the payment appear in my account?
Answer = DWP COLP” or “HMRC COL Payment” depending on who pays your benefit.
Q3 : Will there be more cost of living payments this year?
Answer = No further payments have been confirmed yet, but updates may come later in 2025.
