The UK government has officially confirmed the new £450 Cost of Living Payment for eligible low-income households, starting in August 2025. As inflation and energy prices continue to pressure millions of families, this financial relief is seen as a welcome support during difficult times. If you’re wondering whether you qualify, when you’ll get paid, and what updates you need to know—this article covers everything in detail.
Why the £450 Payment Is Being Issued
The rising cost of essential goods, fuel, rent, and electricity has forced the government to introduce additional financial support to protect vulnerable groups. This £450 one-off payment is part of the broader Cost of Living Support Package 2025, designed to help low-income earners, pensioners, and benefit claimants.
This payment comes in addition to the existing help such as Universal Credit, Pension Credit, and previous energy bill discounts. It’s meant to help offset rising expenses and is not taxable, nor does it affect other benefits.
Who Qualifies for the £450 Cost of Living Payment
Eligibility for the £450 Cost of Living Payment in August 2025 depends on your benefit status during a specific qualifying period. You may qualify if you are receiving any of the following benefits:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Child Tax Credit
- Working Tax Credit
To be eligible, you must have been entitled to receive one of these benefits between 1 July and 31 July 2025. If your claim was under review during this period, your payment may be delayed until a decision is made.
What If You’re Only Receiving Tax Credits
If you’re only receiving Working Tax Credit or Child Tax Credit, and not Universal Credit or other DWP-administered benefits, you’ll still be eligible for the £450 payment. However, your payment may arrive a few weeks later, likely toward the end of August or early September, since HMRC handles those payments separately from the DWP.
You do not need to apply for this support—it will be issued automatically to eligible individuals.
When Will the £450 Payment Be Made
The payment will be distributed in phases starting from 12 August 2025. According to DWP, most payments will be completed by 23 August 2025. Those on tax credits may see payments arriving up to 10 days later, depending on their circumstances.
The payment will appear in your bank statement as “DWP COLP” or “HMRC COL”, depending on which department pays you.
How Will You Receive the Payment
Eligible households will receive the payment directly into their bank accounts used for benefit payments. You don’t need to contact DWP or HMRC. If you have recently changed your bank details or moved address, it’s recommended to update your records as soon as possible to avoid payment delays.
If you’re receiving a joint benefit claim, such as with your partner, only one £450 payment will be issued per household—not per person.
Can You Get This Payment If You Work
Yes. Many people who work full-time or part-time but earn a low income and receive Universal Credit or Working Tax Credit are still eligible. Your earnings must be within the qualifying range for your benefits to remain active during the July 2025 eligibility period.
This payment is meant to support working families as well as those who are unemployed or retired.
What to Do If You Don’t Receive the Payment
If you’re eligible but haven’t received the payment by 2 September 2025, you’ll be able to report a missing payment via the official GOV.UK website. A dedicated portal will be launched for this purpose. Make sure your benefit payments were active during the qualifying dates and double-check your bank account for any unexpected transactions.
Also, make sure you weren’t subject to any sanctions or pending reviews during the eligibility window, as this might delay or block your payment.
Payment Won’t Affect Other Benefits
The £450 payment is non-taxable, and it will not count towards the benefit cap or reduce your existing benefit entitlements. It will also not affect any local support schemes or grants you may be receiving.
This makes it a much-needed financial boost for households already struggling with monthly expenses.
Other Support Available Alongside This Payment
In addition to the £450 Cost of Living Payment, you may also be entitled to:
- Winter Fuel Payment 2025/26 for pensioners
- Disability Cost of Living Payment (additional £150 if you receive certain disability benefits)
- Cold Weather Payments (if temperature drops)
- Local Housing Allowance and Council Tax Reduction
It’s advisable to check with your local council for any additional support schemes in your area.
Avoid Scams and Phishing
Be cautious. The DWP and HMRC will never ask you to click on a link, call a number, or provide personal details to claim your £450 payment. These payments are automatic, and no application is required.
If you receive a suspicious text, call, or email, report it to Action Fraud UK immediately.
What About Scotland, Wales, and Northern Ireland
The £450 Cost of Living Payment applies across England, Wales, Scotland, and Northern Ireland. However, payment timelines may differ slightly due to local administrative differences.
Devolved governments may also introduce additional top-ups or grants for those who qualify under their unique schemes. Check with mygov.scot, gov.wales, or nidirect.gov.uk for updates in your region.
Government Statement on the Support
According to the latest DWP press release, the government remains committed to supporting struggling households through inflationary pressures. The £450 payment is part of a wider economic strategy to protect the most vulnerable during a challenging financial year.
Officials have hinted that if inflation continues to rise into 2026, further cost-of-living support may be considered in next year’s Autumn Budget.
Final Thoughts
The £450 Cost of Living Payment in August 2025 is a major relief for millions of UK residents struggling with rising living expenses. If you’re receiving Universal Credit, Pension Credit, Tax Credits, or other qualifying benefits, and met the eligibility period in July, you should automatically receive your payment in your account by late August.
Make sure your bank details are up to date and monitor your statements for “DWP COLP” or “HMRC COL”. This support doesn’t reduce your existing benefits and is meant to give you breathing space during tough times.
Stay informed by following official GOV.UK updates, and avoid scams by never sharing personal information with unknown sources.
