Hello friends! Big news for households across the UK — the Department for Work and Pensions (DWP) has officially confirmed a one-off £450 Cost of Living Payment scheduled for August 2025.
If you’re receiving certain benefits, this could be extra cash in your account to help with rising bills and everyday costs.
This guide covers who qualifies, when you’ll get paid, how it’s paid, and what you need to do (if anything) to secure it.
What Is the £450 Cost of Living Payment?
The £450 payment is a tax-free, one-off support payment from the UK Government aimed at helping low-income households cope with high living costs in summer 2025.
Unlike previous multi-phase cost of living schemes (2022–2024), this payment is a single lump sum and will not affect your benefits or tax status.
The money will be sent directly to qualifying recipients’ bank accounts — you do not need to apply.
Who Is Eligible for the £450 Payment?
You may qualify if you received one of the following benefits between 10 July and 4 August 2025:
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Universal Credit
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Income-based Jobseeker’s Allowance (JSA)
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Income-related Employment and Support Allowance (ESA)
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Income Support
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Pension Credit
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Working Tax Credit
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Child Tax Credit
Important notes on eligibility:
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You only need to have received one payment of a qualifying benefit during the eligibility window.
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If you receive tax credits only, your payment will come from HMRC, not DWP.
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Households with joint benefit claims will get one payment per household, not per person.
When Will the £450 Be Paid?
Payments will be staggered depending on the type of benefit you receive:
| Benefit Type | Expected Payment Window |
|---|---|
| Universal Credit | 12–15 August 2025 |
| Income Support / JSA / ESA | 16–20 August 2025 |
| Pension Credit | 21–25 August 2025 |
| Tax Credits | 26–30 August 2025 |
💡 Tip: Payments may show up earlier or later depending on your bank’s processing times.
Do You Need to Apply?
No — payments will be made automatically if you meet the eligibility criteria.
The money will appear in your account with a payment reference such as:
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DWP COLP (if from the Department for Work and Pensions)
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HMRC COLP (if from HMRC for tax credit claimants)
What If You Don’t Receive It?
If you believe you’re eligible but don’t receive the payment by 6 September 2025, you should:
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Check your bank account again (including savings accounts linked to your benefit claim).
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Contact DWP or HMRC (depending on your benefit type).
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Have your National Insurance number and benefit claim details ready for verification.
Why Is This Payment Being Made?
The £450 payment is designed as a mid-year boost for households still struggling with high costs.
Rising food prices, energy bills, and transport costs have made it difficult for many families to stay afloat — this payment aims to ease that pressure before the colder months begin.
Key Takeaways
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Amount: £450 (tax-free, one-off).
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When: August 2025 (dates vary by benefit type).
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Who: Low-income households on certain benefits.
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Action needed: None if eligible — payment is automatic.
Final Point of View:
If you’re on a qualifying benefit, this £450 Cost of Living Payment could provide a much-needed financial cushion this summer. Mark the payment dates in your calendar, keep an eye on your bank account, and make sure your benefit details are up to date to avoid delays.