£450 Cost of Living Payment 2025: The Department for Work and Pensions (DWP) has officially announced the £450 Cost of Living Payment 2025, bringing much-needed relief to households battling inflation and rising living costs. This one-off payment will be distributed to eligible recipients between May and June 2025.
This scheme is part of the UK government’s broader support plan for individuals and families dependent on income-related or disability benefits. The £450 Cost of Living Payment 2025 is split into two segments—£301 for those receiving means-tested benefits and £150 for those on disability-related support. Some people may receive both, making the total payment £450.
DWP Confirms June 2025 £450 Cost-of-Living Support: Who Can Claim and When to Receive It
The government has rolled out this support initiative to ease the financial burden on low-income households. Starting 13 May 2025, payments are being deposited directly into beneficiaries’ bank accounts. Those receiving benefits through HMRC will get their payment slightly later, starting 20 May 2025.
You don’t need to apply. If you meet the eligibility criteria based on your benefit status in April 2025, the amount will be credited automatically. The reference on your bank statement will show as “DWP COLP” or “HMRC COL”, depending on the payment authority.
Complete Details of the £450 Payment
The total payment of £450 consists of two components:
- £301 for individuals receiving income-related benefits.
- £150 for those on disability-related benefits such as PIP or DLA.
If you qualify under both categories, you will receive the full £450. Payments are tax-free and do not affect your existing benefits or entitlements. This support is being given automatically—no additional forms or application processes are required.
Who Can Get This Payment?
To qualify for the £450 Cost of Living Payment 2025, you must have been receiving one or more of the following benefits 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
If you receive both an income-based benefit and a disability-related payment, you may be eligible for the full £450. Those receiving only contribution-based or “New Style” JSA/ESA, without any income-based element, are not eligible.
How is the £450 Amount Calculated?
The £450 Cost of Living Payment 2025 is calculated based on the type of government support you receive:
- £301 is awarded to individuals on means-tested benefits.
- £150 is awarded to those receiving disability-related support.
If both categories apply to you, the full £450 will be credited. This method ensures that the financial help is targeted, offering more support to those facing the greatest financial challenges.
When Will You Receive the Payment?
Payment dates are split into two groups:
- For DWP benefit recipients: Between 13 May and 24 May 2025.
- For HMRC tax credit recipients: Between 20 May and 28 May 2025.
All payments will be directly deposited into your existing benefit account. Look for “DWP COLP” or “HMRC COL” on your bank statement. No physical cheques or manual submissions are involved.
Who is Not Getting This Support?
Not every benefit recipient will receive the £450 Cost of Living Payment 2025. You are not eligible if:
- You weren’t receiving any of the qualifying benefits in April 2025.
- Your benefit was nil awarded—for example, if earnings or deductions reduced your payment to zero.
- You only receive New Style ESA or JSA without any income-based benefit.
However, if your nil award was due to specific deductions like rent arrears or benefit recovery, you might still qualify. Check with your work coach or the DWP for confirmation.
There Are Other Support Schemes Too
In addition to the £450 payment, other financial assistance is available for those in need:
- Household Support Fund (HSF): Extended until March 2026, this provides help with food, utility bills, and basic household needs. Amounts vary by region.
- Energy Bill Grants: Some energy companies offer grants of up to £1,700 for customers behind on their bills.
- Local Council Aid: Councils across the UK provide help like food vouchers, emergency cash, and other essential support. Each council has its own eligibility rules.
It’s advised to check your local council’s website for specific details and application steps.
Takeaways
- The £450 Cost of Living Payment 2025 is automatically issued—no application needed.
- Payment will appear as “DWP COLP” or “HMRC COL” on your bank statement.
- It is non-taxable and won’t impact your other benefits.
- Additional help is available through local councils, HSF, and energy support programs.
- Eligibility depends on your benefit status in April 2025.
Conclusion
The £450 Cost of Living Payment 2025 reflects the UK government’s ongoing effort to support low-income and disabled citizens in a time of economic stress. If you’re eligible, the payment should appear in your bank account by the end of June 2025. Make sure to check your payment status and reach out to the DWP or your local council if you have concerns. With inflation still rising, this timely financial support can make a meaningful difference for many households.
FAQs
1. What is the £450 Cost of Living Payment by DWP in 2025?
It’s a one-off, tax-free payment to support low-income and disabled individuals with rising living expenses.
2. Who is eligible for the £450 payment?
Anyone receiving income-based benefits or disability-related support in April 2025.
3. How is the £450 payment divided?
£301 goes to recipients of means-tested benefits, and £150 to those with disability benefits. Some may get both.
4. Do I need to apply to receive this payment?
No, the payment is made automatically if you meet the eligibility criteria.
