£450 Cost of Living Payment: With rising energy bills, increasing grocery prices, and rent costs continuing to climb across the UK, many households are feeling the pressure. To provide timely relief, the government has confirmed a £450 Cost of Living Payment in June 2025. This new financial support measure aims to ease daily expenses for millions of individuals on low incomes.
This article breaks down everything you need to know about the £450 Cost of Living Payment, including eligibility criteria, payment timelines, how it will be delivered, and what to do if you don’t receive it on time. Whether you’re currently on Universal Credit or Pension Credit, this guide will help you prepare and stay informed.
£450 Cost of Living Payment
The £450 Cost of Living Payment is part of the UK government’s broader response to inflation and the high cost of everyday essentials. It’s a one-time, tax-free payment aimed at individuals and families receiving specific DWP benefits. The government will start issuing payments from June 16, 2025, and recipients should expect to see the funds in their bank accounts by the end of the month.
There’s no need to apply for this support. If you meet the conditions, the money will be deposited automatically using the payment information you have on record with the Department for Work and Pensions (DWP). This payment helps offset costs for people most affected by the cost-of-living crisis, particularly those who rely on state benefits as their main source of income.
Overview
Here’s a quick glance at the key details surrounding the £450 Cost of Living Payment:
| Detail | Information |
| Payment Amount | £450 per eligible claimant |
| Start Date | From June 16, 2025 |
| Eligibility | UC, Pension Credit, ESA, JSA, Income Support |
| Application Needed | No – payment is automatic |
| Payment Method | Direct deposit into your DWP-registered account |
| Reference Code | “DWP COLP” + National Insurance number |
| Deadline to Receive | End of June 2025 |
| Official Website | gov.uk/dwp |
Purpose
This £450 Cost of Living Payment is being introduced in response to continued economic strain across UK households. Inflation rates have remained higher than expected, putting additional stress on low-income families. Energy prices, despite government intervention, remain elevated, and essential costs such as transport and groceries have not seen the relief many hoped for.
The payment is not just a handout—it’s a strategic effort to avoid financial emergencies like rent arrears or unpaid utility bills. It’s part of a broader package that includes measures like the Household Support Fund and the Energy Price Guarantee.
DWP Launches New Savings Scheme – Universal Credit Claimants Could Get a £1,200 Bonus
While the £450 Cost of Living Payment is a one-time payment, it works alongside several long-term support programs. One such initiative is a DWP savings scheme that allows Universal Credit claimants to potentially earn a £1,200 bonus. This is in addition to the cost of living payment and is intended to encourage saving habits among low-income earners.
These efforts show the government’s move toward combining short-term relief with long-term financial stability for vulnerable households.
Eligibility
You may be eligible for the £450 Cost of Living Payment if you receive one of the following during a yet-to-be-confirmed qualifying week:
- Universal Credit (UC)
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
In some cases, people on Working Tax Credit or Child Tax Credit may also qualify, but this is limited and will depend on specific circumstances confirmed by the DWP.
It’s important to note that claimants on “New Style” ESA or JSA without a related income-based benefit will not be eligible for this payment.
Timeline
The payment window opens on June 16, 2025, and will remain open until the end of June 2025. The DWP will process payments in batches, directly depositing them into the bank accounts used for regular benefits.
There’s no application process. If you’re eligible, your payment will simply appear in your account. On your bank statement, the transaction will be labeled as “DWP COLP” followed by your National Insurance number.
If your payment hasn’t arrived by early July, you should reach out to the DWP through the usual benefit contact channels.
Reason
The driving force behind this payment is the growing gap between income and essential living costs. Despite various economic recovery measures, prices for rent, groceries, and energy remain significantly higher than in previous years. Many households continue to operate under financial strain.
This payment is one of the government’s responses to ensure that essential needs are met and that fewer people are pushed into financial crisis. It’s intended to ease pressure during a particularly tough period.
Preparation
Although this payment is automatic, it’s always a good idea to double-check that your details are up to date with DWP. Here’s what you can do:
- Check your benefit account details to ensure your bank information is correct
- Look at your June 2025 statements for “DWP COLP”
- Report any changes in address, bank, or personal circumstances promptly
Taking a few minutes now to prepare could help prevent delays when the payment is rolled out.
Extras
This support payment is one part of a broader plan. Other financial relief programs introduced in the 2024 Budget include:
- Household Support Fund – Distributed via local councils for basic needs
- Energy Price Guarantee – Ongoing help with energy bills
- Fuel Duty Freeze – Keeping transport costs stable
- Revised Local Housing Allowance Rates – Implemented from April 2025 to match rental increases
Together, these schemes aim to support low-income households in a more structured and consistent way.
FAQs
1. When is the £450 payment due?
From June 16 to June 30, 2025.
2. Who qualifies for the payment?
People on UC, Pension Credit, ESA, JSA, or Income Support.
3. Do I need to apply?
No. If you’re eligible, you’ll be paid automatically.
4. What will the payment reference say?
“DWP COLP” plus your National Insurance number.
5. What if my payment doesn’t arrive?
Contact the DWP using your regular benefit support line after June.
Final Thought
The £450 Cost of Living Payment is a much-needed boost for millions of households feeling the pinch. It reflects the government’s ongoing effort to ease pressure without adding complexity. There’s no paperwork, no forms—just support when it’s needed. If you found this helpful, share the information with others who might benefit, and stay informed by checking official DWP updates.
