In the face of ongoing financial challenges and rising living costs, the UK government has announced a £450 Cost of Living Payment, set to be issued in June 2025. This one-off payment, managed by the Department for Work and Pensions (DWP), aims to provide temporary relief to those hardest hit by high energy bills, rising rent, and food inflation.
While many households are still struggling to recover from the financial fallout of recent years, this payment offers a bit of a lifeline. However, it does raise some important questions: who is eligible, when will it be received, and how does it fit into the broader landscape of support available?
What is the £450 Cost of Living Payment?
The £450 payment is a non-taxable, one-off grant aimed at supporting low-income households. It’s part of the government’s broader Cost of Living Support Package, which has offered various forms of assistance in recent years, such as energy discounts, council tax rebates, food vouchers, and direct payments. The payment this year replaces the tiered structure used in 2022-2024, offering a single universal amount to eligible households, simplifying the process.
Who Is Eligible for the £450 Payment?
To qualify for the £450, recipients must be receiving certain means-tested benefits during a specific period—March 11 to April 7, 2025. These benefits include:
- Universal Credit (except for those with a ‘zero award’),
- Income-based Jobseeker’s Allowance (JSA),
- Income-related Employment and Support Allowance (ESA),
- Income Support,
- Pension Credit,
- Working Tax Credit and Child Tax Credit (administered by HMRC).
It’s important to note that if you only receive contributory or new-style JSA/ESA, you won’t qualify, as these are not means-tested benefits. Additionally, you need to have an active claim during the qualifying period, and no sanctions should result in a zero benefit award—unless it’s due to deductions.
When Will It Be Paid?
The DWP is scheduled to begin issuing payments starting May 13, 2025, with most recipients expecting to receive the payment by the end of the month. Here’s the expected timeline:
- May 13–24: Payments for most Universal Credit, Income Support, and Pension Credit recipients.
- May 20–31: Payments for those on Tax Credits, issued by HMRC.
No application is needed. Payments will be made automatically into the same bank account used for your regular benefit payments. If there are any delays or issues, the DWP’s helpline or Universal Credit journal can help.
How Will You Receive It?
The £450 will show up in your bank statement with a reference code like:
- DWP COLP June 2025 (for DWP-administered payments), or
- HMRC COLP June 2025 (for Tax Credit recipients).
Since it’s not taxable, the payment won’t impact your benefit calculations or existing entitlements. You’re free to use it however you like—whether it’s for groceries, rent, fuel, or other essentials.
Why Was This Payment Introduced?
The government explains that the continued high cost of living, with food inflation at over 8%, average energy bills still hovering near £1,800 per year, and record-high rents, is why they’ve introduced this payment. The £450 is intended as short-term relief for those struggling to keep up.
While the payment is appreciated by many, some critics argue it’s only a temporary fix to a much deeper problem, calling for permanent increases to benefits, more affordable housing, and better regulation of energy prices.
Who Will Benefit Most?
The £450 payment is designed to help some of the most vulnerable groups:
- Single-parent households,
- Pensioners living alone,
- Disabled individuals on low incomes,
- Families relying on top-up benefits like Universal Credit or Tax Credits.
Renters, in particular, will benefit, especially those who are dealing with increasing rent and council tax bills.
Beware of Scams
When large-scale payments like this are announced, scams often follow. Be cautious of:
- Emails or texts asking you to “claim” your payment,
- Unofficial websites asking for personal information,
- Calls asking for your bank details.
The DWP will never ask for personal information in relation to this payment. If you’re unsure, contact the official helpline or check GOV.UK for updates.
What If You Don’t Get Paid?
If you think you’re eligible but haven’t received your payment by May 31, 2025, here’s what to do:
- Wait until June 1, as some payments might be delayed.
- Check your benefit account to ensure your details are up to date.
- Contact DWP or HMRC based on your benefit type.
You can also reach out to welfare advisors through Citizens Advice or local charities for assistance.
Conclusion: Temporary Relief, Not a Long-Term Solution
While the £450 Cost of Living Payment will provide immediate help for millions of struggling UK households, it’s a short-term measure in the face of a long-term crisis. With inflation still high and wages stagnating, more comprehensive reforms in benefits, housing, and energy markets are urgently needed.
In the meantime, eligible families can look forward to receiving this much-needed boost in June 2025—without having to navigate a mountain of paperwork.
