The Department for Work and Pensions (DWP) has introduced a one-off £450 Cost of Living Payment to support millions of UK residents facing financial challenges.
Scheduled to commence on May 6, 2025, this initiative aims to alleviate the burden of rising living costs for eligible households.
Overview of the £450 Payment
- Amount: £450 (one-time payment)
- Distribution Period: May 6 to end of June 2025
- Application Process: No application required; payments are automatic for eligible individuals
- Payment Method: Direct deposit to the claimant’s registered bank account
- Payment Reference: Will appear as “DWP COLP” followed by the recipient’s National Insurance number
- Tax Status: Non-taxable and does not affect existing benefit entitlements
This payment is part of the government’s ongoing efforts to provide targeted financial assistance to those most affected by the current economic climate.
Eligibility Criteria
To qualify for the £450 payment, individuals must have been receiving one or more of the following benefits during a specific qualifying period in 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
It’s important to note that individuals receiving only New Style ESA, New Style JSA, or contribution-based benefits without any of the qualifying income-related benefits listed above will not be eligible for this payment.
Payment Schedule
The DWP has outlined the following tentative payment schedule based on the type of benefit received:
- Universal Credit: May 6 – May 20, 2025
- Pension Credit: May 13 – May 27, 2025
- Income Support, JSA, ESA: May 20 – June 3, 2025
- Tax Credit Recipients (HMRC): May 27 – June 10, 2025
These dates are approximate, and individual payment dates may vary based on banking processes and payment systems.
Special Considerations
- Joint Claims: Couples with joint benefit claims will receive a single £450 payment.
- Care Home Residents: Eligible if receiving qualifying benefits, even if care is funded by the local authority.
- Hospital Inpatients: Remain eligible if benefit entitlement continues during hospitalization.
- Temporary Absence Abroad: Eligible if meeting all other criteria and temporary absence rules for regular benefits.
- Recently Deceased Claimants: Payment will not be made if the claimant passed away before the qualifying period.
Preparing for the Payment
To ensure a smooth payment process:
- Verify Bank Details: Ensure the DWP has your current bank account information.
- Check Benefit Status: Confirm you’re receiving a qualifying benefit.
- Update Contact Information: Make sure the DWP has your current address and phone number.
- Monitor Bank Account: Watch for the payment during the expected timeframe.
- Keep Payment Evidence: Save bank statements showing the payment for your records.
If you need to update your personal details with the DWP, you can do so through:
- Universal Credit journal:
- Pension Service (for Pension Credit):
- Jobcentre Plus (for other benefits):
What to Do If You Don’t Receive the Payment
If you believe you are eligible but do not receive the £450 payment by the end of June 2025:
- Contact the Relevant Benefit Office: Reach out after June 30, 2025.
- Verify Bank Details: Ensure the DWP has your updated information.
- Alternative Payment Arrangements: Payments will be made through the same alternative method.
- Recent Benefit Claims: Check if you were receiving benefits during the qualifying period.
It’s important to wait until after the expected payment period ends (June 30, 2025) before reporting a missing payment, as the distribution will take place over several weeks.
The £450 Cost of Living Payment offers vital support to millions of UK residents struggling with rising expenses.
With automatic payments starting in May 2025, eligible individuals are urged to verify their benefit and bank details. This timely relief aims to ease financial pressure for the most vulnerable households.
FAQs
Is an application required to receive the £450 Cost of Living Payment?
No, eligible individuals will receive the payment automatically.
Will the £450 payment affect my existing benefits?
No, the payment is non-taxable and does not count as income, so it won’t affect existing benefit entitlements.
What should I do if I don’t receive the payment by the end of June 2025?
If you believe you’re eligible and haven’t received the payment by June 30, 2025, contact the relevant benefit office to report the missing payment.