With inflation still squeezing household budgets, the UK government has confirmed a £450 Cost of Living Payment for eligible citizens in May and June 2025.
This one-off financial boost, issued by the Department for Work and Pensions (DWP) and HMRC, aims to ease rising costs for those on means-tested and disability benefits.
If you’re receiving Universal Credit, Pension Credit, or certain disability benefits, you could be on the payout list for June 2025.
Here’s everything you need to know—eligibility, payment dates, and what to do if you haven’t received yours yet.
What Is the £450 Cost of Living Payment?
The £450 payment is part of the government’s ongoing effort to support low-income households through the cost-of-living crisis. It is:
- Non-taxable
- Doesn’t affect benefit levels
- Automatically issued—no need to apply
The amount combines two separate components:
- £301 for those on means-tested benefits
- £150 for those on disability-related benefits
Some recipients will qualify for both, bringing the total to £450.
£450 Cost of Living Payment – Key Details
| Detail | Information |
|---|---|
| Total Amount | Up to £450 |
| Split | £301 (means-tested) + £150 (disability) |
| Payment Period | May – June 2025 |
| Eligibility Period | Likely between Feb – April 2025 |
| Who Pays | DWP or HMRC |
| Application Needed | No – Payment is automatic |
| Bank Statement Label | “DWP COLP” or “HMRC COL Payment” |
| Affects Other Benefits? | No, it is non-taxable and does not reduce support |
Who Is Eligible for the £450 Cost of Living Payment?
You may qualify for the payment if you were receiving any of the following during the qualifying period:
- Universal Credit
- Pension Credit
- Income Support
- Income-based ESA or JSA
- Child Tax Credit
- Working Tax Credit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
Even if you received a nil award during that period (due to deductions), you may still be eligible.
When Will the £450 Be Paid?
The timeline depends on the benefit agency:
| Agency | Benefit Types | Payment Window |
|---|---|---|
| DWP | UC, ESA, JSA, Pension Credit | Mid-May to early June 2025 |
| HMRC | Child/Working Tax Credit | Late May to mid-June 2025 |
Watch your bank account for a transaction labeled “DWP COLP” or “HMRC COL Payment”.
What If You Haven’t Received the Payment Yet?
If you think you’re eligible but haven’t received your payment by late June, here’s what to do:
- Check your benefit history during the qualifying period
- Look for a separate deposit labeled as COL payment
- Contact DWP (for Universal Credit, ESA, etc.) or HMRC (for tax credits)
- Keep your National Insurance number ready for verification
Why Is This Support Being Given?
The payment is a direct response to ongoing inflation, energy bill hikes, and rising food and rent costs. With 2025 still being a financially tough year for many, the government aims to provide immediate relief for the most vulnerable.
Will There Be More Cost of Living Payments in 2025?
At the time of writing, this is the only confirmed support payment for 2025. However, further assistance could be announced in the Autumn Statement, depending on the economic outlook.
The £450 Cost of Living Payment is a critical lifeline for millions of UK households facing increased expenses in 2025. If you’re receiving qualifying benefits, check your bank account this June—no need to apply, just make sure your payment details are correct and stay informed through DWP or HMRC updates.
This financial support may not solve everything, but it could make a meaningful difference this month.
FAQs
Do I need to apply for the £450 Cost of Living Payment?
No. It will be paid automatically if you meet the eligibility criteria during the qualifying period.
How will the payment appear in my account?
It will be listed as “DWP COLP” or “HMRC COL Payment” in your bank statement.
Will there be more cost of living payments later in 2025?
Not currently confirmed, but more help could be announced in the Autumn 2025 Budget or Statement.