Millions of people across the UK have begun receiving the much-anticipated £450 Cost of Living Payment this July, offering crucial relief during ongoing economic challenges. With inflation still impacting household budgets and utility costs remaining high, this payment from the Department for Work and Pensions (DWP) is designed to support low-income individuals, pensioners, and those receiving means-tested benefits.
If you’re wondering whether you’re eligible and when exactly the payment will reach your account, this article will walk you through everything you need to know – from qualification criteria to exact payment timelines and what to do if you haven’t received it yet.
What Is The £450 Payment?
The £450 Cost of Living Payment is part of the UK Government’s continuing support package aimed at easing the financial burden on vulnerable and low-income households. This specific payment is separate from previous instalments of the cost of living support and is designed to tackle rising living expenses, especially over the summer.
Unlike the standard benefit payments, this one-off sum is non-taxable, will not affect existing benefits, and will be sent automatically to eligible individuals.
Who Is Eligible?
Eligibility is based on the benefits you were receiving during a specific qualifying period. To qualify for the £450 Cost of Living Payment in July, you must have been receiving one of the following benefits between 26 May and 24 June 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
Note: Contribution-based benefits like New Style ESA or JSA do not qualify unless combined with income-based support.
Payment Window
The Department for Work and Pensions confirmed that most payments started arriving from 8 July 2025 and will continue to be distributed until 23 July 2025. If you are receiving tax credits but no other DWP benefits, your payment may arrive slightly later, typically between 16 July and 23 July 2025.
All payments are made directly to your bank account – the same one where you usually receive your benefit.
How Will I Receive It?
You do not need to apply for the £450 Cost of Living Payment. It will be paid automatically by the DWP or HMRC depending on which benefits you claim.
When you receive the payment, it will appear in your bank account with a reference such as:
- DWP COLP (if paid through DWP)
- HMRC COLS (if paid through HMRC)
This helps to easily distinguish the payment from your regular benefit income.
What If I Don’t Receive It?
If you’re eligible and haven’t received your payment by 24 July 2025, you can report it directly to the DWP using the official GOV.UK portal.
However, before doing that, ensure:
- Your bank details are up to date
- You meet the eligibility criteria during the qualifying period
- You didn’t have a sanction or suspension on your benefit during the qualifying period
Payments can sometimes be delayed due to banking issues or technical errors, so it’s recommended to wait until the final date of the payment window before contacting DWP.
Pensioners And The £450 Payment
Many pensioners receiving Pension Credit will also qualify for this £450 support. If you applied for Pension Credit by 23 July 2025, and your claim is backdated to cover the qualifying period, you may still get the payment even if your award is confirmed later.
This is especially beneficial for elderly households struggling with fixed incomes and high utility bills during the summer.
Tax Credits Claimants
For those receiving Working Tax Credit or Child Tax Credit and not on any other DWP benefit, HMRC is handling the payment separately.
Your payment will come later than DWP-issued payments, typically by 23 July 2025. No separate application is required. The bank reference for these payments will read “HMRC COLS”.
If you are unsure whether you qualify based on tax credit claims alone, it is advisable to review your claim statements from HMRC or contact the HMRC helpline for further clarification.
What To Do If You’re Newly Eligible
If you weren’t receiving any qualifying benefits during the eligibility window but believe you now meet the criteria, unfortunately, you won’t receive this round of the Cost of Living Payment.
However, keep an eye out for future government support schemes or apply for benefits such as Universal Credit or Pension Credit if your financial circumstances have changed.
In some cases, Pension Credit applications can be backdated by up to three months, which may still help you become eligible – but only if you apply within the official backdate window.
Impact On Benefits And Taxes
The good news is that the £450 payment won’t affect your existing benefits, tax credits, or income-based thresholds. It’s entirely tax-free, and you don’t need to declare it when applying for other government support.
This means you can receive the full £450 without worrying about it being deducted from your regular entitlements.
Why This Payment Matters
The cost of essentials such as groceries, energy, and housing remains high in 2025. Many households are still recovering from inflation-driven spikes in previous years. This £450 support is expected to help reduce immediate financial pressure, especially for those on a fixed or low income.
While this payment alone may not cover all increased expenses, it’s part of a wider strategy that includes energy bill discounts, housing support, and increased thresholds for certain benefits.
Be Aware Of Scams
As with any government payment, be cautious about scams. You do not need to provide your bank details or click any links to receive the payment.
If you get a suspicious email, text, or call claiming to be from DWP or HMRC asking for your personal information to release the payment, ignore it and report it to Action Fraud or the official gov.uk site.
More Help Available
If the £450 payment is not enough and you’re still struggling, consider looking into:
- Local council welfare assistance
- Charities offering crisis grants
- Help with rent and energy bills through your local authority
- Debt support services such as StepChange, Citizens Advice, or National Debtline
There is also a wide range of food banks and community support organisations offering emergency help across the UK.
Final Words
The £450 Cost of Living Payment is a timely boost for millions of UK residents facing economic uncertainty. It’s simple, automatic, and designed to cushion the impact of rising prices on essential goods and services.
If you’re eligible and haven’t seen the payment yet, don’t panic – the rollout continues until 23 July 2025. And if you believe you’re missing out, take the time to verify your benefit status and contact the relevant authority.
In times like these, every bit of support matters. Stay informed, stay safe, and ensure you’re getting the help you’re entitled to.
