The UK government has confirmed a £450 Cost of Living Payment to provide financial relief to families and individuals struggling with rising costs in 2025.
As inflation continues to affect everyday expenses such as food, energy, and housing, this payment aims to ease the burden on low-income households.
The Department for Work and Pensions (DWP) and HMRC will automatically issue these payments to eligible recipients starting in June 2025.
What Is the £450 Cost of Living Payment?
The £450 Cost of Living Payment is a government initiative designed to support people who are most affected by the ongoing cost-of-living crisis in the UK.
The total payment amount is split into two parts: £301 for those on income-based benefits and £150 for individuals receiving disability benefits. This non-taxable payment is deposited directly into the recipient’s existing benefit account.
Importantly, there is no need to apply for the payment. As long as you qualify, the payment will be automatically processed.
The payment does not impact existing benefits, and recipients can expect to see the funds labeled as “DWP COLP” or “HMRC COL Payment” in their bank accounts.
Payment Breakdown
| 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 payment is divided into two parts:
- £301 for individuals receiving income-based benefits such as Universal Credit or Pension Credit.
- £150 for those receiving disability benefits like PIP (Personal Independence Payment) or DLA (Disability Living Allowance).
In some cases, individuals may qualify for both parts of the payment, thus receiving the full £450.
Who Is Eligible for the £450 Payment?
To qualify for the £450 Cost of Living Payment, you must be receiving one of the following benefits during the qualifying period (likely from February to April 2025):
- Universal Credit
- Pension Credit
- Income-based JSA (Jobseeker’s Allowance)
- Income-related ESA (Employment Support Allowance)
- Income Support
- Child Tax Credit
- Working Tax Credit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
Even individuals who received a nil award during the qualifying period (e.g., no money due to deductions for rent or debts) may still be eligible for the payment.
When Will the £450 Be Paid?
Although some payments started in May 2025, many claimants will receive their payments in June 2025. The timing of payments depends on the type of benefits received and any processing delays:
- DWP benefits (e.g. Universal Credit, ESA) – Payments are issued between mid-May and early June.
- HMRC benefits (e.g. Tax Credits) – Payments are expected between late May and mid-June.
Check your bank account for a transaction labeled “DWP COLP” or “HMRC COL Payment” to identify the payment.
What If You Don’t Receive It?
If you haven’t received your payment by late June 2025, follow these steps:
- Review your benefit history to ensure eligibility during the qualifying period.
- Double-check your bank account for a separate transaction labeled “DWP COLP” or “HMRC COL Payment”.
- Contact DWP (for Universal Credit, 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 £450 Cost of Living Payment was introduced by the UK government to help vulnerable households facing financial strain due to high living costs.
Energy prices remain elevated, and inflation continues to impact everyday goods, making this payment an essential support measure for people already relying on government benefits.
Will There Be More Payments in 2025?
As of now, this is the only confirmed Cost of Living Payment for 2025. However, there may be additional support in the future, depending on economic conditions.
Stay informed for updates, especially after the Autumn Statement 2025 for possible announcements regarding further assistance for energy bills, housing costs, or other living expenses.
The £450 Cost of Living Payment is a vital financial lifeline for those struggling with rising living costs.
It’s automatically paid to those who meet the eligibility criteria, providing essential support during these challenging economic times. Keep an eye on your bank account and ensure your eligibility for this valuable assistance.
FAQs
Who is eligible for the £450 Cost of Living Payment?
You are eligible if you receive means-tested or disability benefits such as Universal Credit, Pension Credit, PIP, or DLA.
Do I need to apply for the payment?
No, the payment is issued automatically to those who qualify.
What should I do if I haven’t received the payment?
Review your benefit history, check your bank account for the correct payment label, and contact DWP or HMRC if necessary.