The UK Government is once again stepping in to help low-income households tackle the rising cost of living. A new £450 Cost of Living Payment is expected to roll out in August 2025, aiming to ease financial pressure for millions of people across the country. If you’re wondering whether you qualify and when you might receive the payment, this detailed guide will help you understand everything you need to know.
Why This £450 Payment Matters Now
The UK has been experiencing persistent inflation, with energy prices, food bills, and rent continuing to burden millions. In response, the Department for Work and Pensions (DWP) and HM Treasury have planned a £450 Cost of Living Payment to support vulnerable individuals and families. The payment is not automatic for everyone, and eligibility criteria have been clearly defined. For many, this could be a lifeline as energy bills are expected to rise again in the coming months.
Who Will Receive the £450 in August 2025?
Not everyone in the UK will receive this payment. It is targeted toward individuals on specific means-tested benefits. If you’re receiving any of the following, you may be eligible:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
You must have received one of these benefits between 10 July 2025 and 5 August 2025, or have a later entitlement backdated to this period.
What If You’re On State Pension?
Many pensioners living on a low income are also eligible, provided they’re claiming Pension Credit. The government has been encouraging pensioners to apply for Pension Credit even if they have modest savings or a small private pension, as it can unlock access to this £450 payment and additional benefits such as free NHS dental treatment and Cold Weather Payments.
How Will the £450 Payment Be Made?
The £450 Cost of Living Payment will be made directly into your bank account, using the same method and account details used for your benefits. There is no need to apply separately or fill out any forms. DWP will identify eligible recipients automatically based on their benefit records during the qualifying period.
The payment will appear in your bank statement as “DWP COL” or “HMRC COLS”, depending on whether you’re receiving DWP benefits or tax credits.
What Are the Official Payment Dates?
According to government sources, the £450 payment window will begin from Monday, 19 August 2025, and will continue until Friday, 30 August 2025. Most recipients should receive their funds within this time frame. However, in some cases, delays might occur due to verification checks or bank processing times.
If you haven’t received your payment by the first week of September 2025, you’ll be advised to contact DWP or HMRC (if on tax credits).
Will There Be More Cost of Living Payments in 2025?
While this £450 payment is the main support announced for August, the government has hinted at additional seasonal support later in the year—especially during the winter period. Past schemes like the Winter Fuel Payment and Cold Weather Payment may also return, alongside new one-off grants depending on how inflation and energy prices evolve.
Can You Still Get It If You Apply Late for Benefits?
Yes, but only if your benefit application is backdated to include the qualifying period (10 July to 5 August 2025). For example, if you apply for Pension Credit in September but request it to be backdated to July (and you’re eligible), you might still receive the £450 payment.
It’s crucial to apply for benefits like Pension Credit or Universal Credit as soon as possible if your circumstances have changed. Waiting too long might make you miss out on this one-off support.
Is the £450 Payment Taxable?
No, the £450 Cost of Living Payment is tax-free. It will not count toward your benefit cap or affect your existing benefit entitlement. This means you don’t have to worry about losing money from your other payments or having to report it as income.
What to Do If You Don’t Receive the Payment
If you meet the eligibility criteria and don’t receive the payment by the end of August, follow these steps:
- Check your benefit statement to ensure you received payment during the qualifying window.
- Look for the reference “DWP COL” or “HMRC COLS” in your bank account.
- If no payment appears by 6 September 2025, contact the appropriate office:
- For DWP-related benefits: Call the Universal Credit or ESA helpline.
- For tax credit recipients: Contact HMRC.
You’ll be asked for personal information and may need to verify your claim, so have your National Insurance Number and bank details ready.
Scams Around Cost of Living Payments
As with previous support schemes, scams are on the rise. Be cautious of:
- Text messages claiming you need to “apply” for the £450 payment.
- Emails asking you to “verify your account” to receive funds.
- Phone calls offering to help you claim your payment for a fee.
Remember, DWP or HMRC will never contact you asking for bank details or payment to process this support. Always check official websites before taking action.
What If You’re a Couple?
If both members of a couple receive a qualifying benefit, you’ll receive one payment of £450 per household, not per person. This rule has remained consistent with previous cost of living support schemes.
How This Payment Fits Into Wider Support
The £450 payment is part of a broader set of measures, including:
- Extended Energy Price Guarantee
- Increased Local Housing Allowance caps
- Council Tax Support via local authorities
- Free school meals for eligible children
- Help with NHS costs
Make sure you’re also taking advantage of local council support funds and other discretionary help available in your area.
Final Words
The £450 Cost of Living Payment in August 2025 offers vital relief for millions of households across the UK. With inflation and energy prices still affecting daily life, this support can help families manage their finances more comfortably.
If you think you might be eligible, double-check your benefit status, and ensure your information with DWP or HMRC is accurate and up to date. Even if you’re not currently receiving any qualifying benefits, it’s worth checking your eligibility—especially for Pension Credit or Universal Credit, which could open the door to additional support.
