The £450 Cost of Living Payment is part of the UK government’s ongoing efforts to support households struggling with rising bills, food costs, and overall inflation. This payment is being rolled out in August 2025 and is intended to help low-income families, pensioners, and those on specific benefits to cope with the ongoing financial pressures. It’s not a loan and won’t affect any other benefits you receive.
This new instalment has been announced as a one-off support package for eligible households, and is particularly aimed at helping during the end of summer when energy bills and back-to-school costs typically surge. If you’re eligible, you don’t need to apply—payments will be made automatically to qualifying individuals.
Who Will Receive the Payment?
Eligibility is one of the most important factors for this cost of living support. To get the £450 payment, you must be receiving at least one of the following means-tested benefits during a qualifying period (which is expected to be in late June or early July 2025):
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
You must have been entitled to one of these benefits during the qualifying dates. If your claim was pending or under appeal during that time, you may still be eligible once your benefit is approved.
When Will Payments Be Made?
The Department for Work and Pensions (DWP) has confirmed that payments will begin from Monday, 19 August 2025, and will continue to roll out over a few weeks. Most people should receive the payment by Friday, 6 September 2025.
Those receiving tax credits and no other qualifying benefits will get their payment slightly later, typically from HMRC around the first week of September.
You do not need to contact DWP or HMRC about your payment—it will be paid automatically into your account, using the same method you usually receive your benefits.
How Will I Know I’ve Been Paid?
The £450 payment will appear in your bank statement with the reference that includes your National Insurance Number followed by “DWP COL” or “HMRC COL”, depending on the agency handling your payment. This helps distinguish the payment from other regular benefits or pensions you receive.
It’s worth noting that this is a tax-free, non-repayable payment and it will not affect any other benefits, housing payments, or council tax support you currently receive.
What If I Don’t Receive the Payment?
If you believe you’re eligible but haven’t received the payment by mid-September, the government will open a reporting tool on GOV.UK for you to flag your missing payment. Be sure your benefit details and bank information are up to date to avoid delays.
There will also be an official window where you can report missing payments or errors, which is likely to open around 16 September 2025.
Why This Payment Matters
The £450 Cost of Living Payment comes at a critical time. Many UK households continue to feel the pinch from inflation, especially with food prices and household bills still above pre-2022 levels. While energy bills have stabilised, they remain a challenge for many families and pensioners on tight budgets.
Back-to-school expenses, rising fuel costs, and upcoming winter planning have made August a tough month financially. This one-time support is meant to help relieve some of that burden, even if temporarily.
Is This the Only Support Available?
This £450 payment is part of a broader package of cost of living help offered by the UK government in 2025. Other assistance you may be entitled to includes:
- Energy Price Guarantee Support (if you’re on a prepayment meter)
- Warm Home Discount (for winter 2025/26)
- Winter Fuel Payments for pensioners
- Discretionary Housing Payments from local councils
Check with your local authority or visit GOV.UK to find out about other types of assistance you may qualify for.
How to Stay Updated
For the most accurate and up-to-date information, keep checking:
- www.gov.uk
- DWP’s official press releases
- Your Universal Credit or benefit journal
You can also sign up for email alerts on GOV.UK for cost of living news and benefit changes, especially if you are on a low income.
What If I’m Not on Benefits?
Unfortunately, if you’re not receiving any of the qualifying benefits, you won’t get this payment. However, there may be local schemes run by your council or energy provider that can help with bills, food, or essential household goods. It’s worth contacting your local council to see what’s available.
Some households not receiving benefits may still qualify for help through Hardship Funds, especially if they’ve recently had a change in circumstances such as job loss, illness, or increased family costs.
Don’t Fall for Scams
As with previous cost of living payments, there’s a risk of scammers targeting people with texts or emails pretending to be from DWP or HMRC. Remember:
- You do not need to apply for this payment.
- The DWP will never ask for personal or bank details over text or email.
- Always use GOV.UK to check official information.
If you receive a suspicious message, report it to Action Fraud or forward scam texts to 7726.
Final Thoughts
The £450 Cost of Living Payment coming this August is a helpful relief for many UK households. If you’re already receiving means-tested benefits, you likely qualify and can expect the money to be paid automatically to your bank account.
Make sure your benefit details are accurate, keep an eye on your account from mid-August onwards, and don’t hesitate to report missing payments if necessary.
In uncertain times, even a one-off payment like this can make a meaningful difference. Keep checking official sources for updates, and stay aware of other support schemes that might also be available to you and your family.
