To help combat rising inflation, energy bills, and living expenses, the UK government has confirmed the rollout of a £450 Cost of Living Payment for eligible low-income and disabled individuals.
Distributed between May and June 2025, this financial relief is part of the ongoing support plan coordinated by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC).
This non-taxable payment is automatic, meaning no application is needed—if you’re eligible, the money will be directly deposited into your benefit-linked account.
What Is the £450 Cost of Living Payment?
The £450 payment consists of two components, designed to assist recipients of different types of benefits:
- £301 for individuals on income-related benefits (e.g. Universal Credit, Pension Credit)
- £150 for those on disability-related benefits (e.g. PIP, DLA)
Some individuals may qualify for both payments, receiving the full £450 directly.
Payment Overview
| Detail | Information |
|---|---|
| Total Payment | Up to £450 (if eligible for both components) |
| Payment Window | May to June 2025 |
| Eligible Benefits | UC, PC, ESA, JSA, PIP, DLA, Tax Credits, etc. |
| Issuing Agencies | DWP, HMRC |
| Payment Method | Direct deposit into benefit-linked bank account |
| Bank Statement Label | “DWP COLP” or “HMRC COL Payment” |
| Taxable? | No |
| Action Required? | None – Paid automatically |
Who Is Eligible for the £450 Payment?
You may qualify if you were receiving any of the following means-tested or disability benefits during the eligibility window (likely February–April 2025):
- Universal Credit (UC)
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working or Child Tax Credits
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
Even individuals with a nil award due to deductions may still be eligible, depending on specific conditions.
When Will the £450 Payment Be Made?
Payment Dates Based on Benefit Type:
| Agency | Benefit Type | Payment Timeline |
|---|---|---|
| DWP | UC, ESA, JSA, PC | Mid-May to early June 2025 |
| HMRC | Tax Credits (WTC/CTC) | Late May to mid-June 2025 |
To verify receipt, look for a transaction labeled “DWP COLP” or “HMRC COL Payment” in your bank statement.
Haven’t Received Your Payment?
If you think you’re eligible but haven’t received the £450 payment by the end of June 2025, take the following steps:
- Confirm benefit eligibility for the qualifying period
- Review bank transactions for the correct payment label
- Contact DWP or HMRC with your National Insurance number and benefit details
Delays can happen due to bank holidays, processing lags, or account verification issues.
Why Is the Government Providing This Payment?
The £450 Cost of Living Payment is part of the UK’s wider effort to shield vulnerable households from ongoing financial strain.
With energy costs, fuel prices, and grocery bills still significantly higher than pre-pandemic levels, the government aims to cushion low-income families and disabled individuals from further hardship.
Could More Payments Be Announced in 2025?
As of now, no additional cost of living payments have been officially announced for the rest of 2025.
However, depending on inflation trends and policy changes, further support may be revealed in the Autumn Budget Statement.
The £450 Cost of Living Payment is a timely relief for millions of UK residents navigating the pressures of everyday costs.
Whether you’re receiving Universal Credit, Pension Credit, or disability benefits, check your bank account for this automatic payment.
If you believe you’re eligible and haven’t received it, reach out to DWP or HMRC before the end of June 2025 to resolve any issues.
Stay informed and prepared for any upcoming financial support schemes in the months ahead.
FAQs
Do I need to apply for the £450 Cost of Living Payment?
No. The payment is issued automatically if you receive eligible benefits.
How will I recognize the payment in my bank account?
Look for a transaction labeled “DWP COLP” or “HMRC COL Payment.”
What if I didn’t receive the payment by end of June 2025?
Contact DWP or HMRC with your NI number and benefit details for help.