The Department for Work and Pensions (DWP) has confirmed that eligible low-income households in the UK will receive a £450 Cost of Living Payment in May 2025. This is part of the government’s continued support for people struggling with the rising cost of essentials such as food, energy, and housing. The payment is automatic for those on qualifying benefits, with no application needed.
DWP Confirms £450 Cost of Living Payment
| Key Detail | Information |
|---|---|
| Payment Name | £450 Cost of Living Payment |
| Amount | £450 |
| Payment Window | May 2025 (Exact dates to be confirmed) |
| Eligibility | Based on receipt of certain DWP or HMRC benefits |
| Disbursement Method | Direct deposit into bank accounts |
| Official Link | https://www.gov.uk/guidance/cost-of-living-payment |
What is the £450 Cost of Living Payment?
The £450 Cost of Living Payment is a one-off support payout issued by the UK government to assist households facing financial stress due to inflation and higher living costs. It is part of a wider package of support that has included similar payments in 2022, 2023, and 2024.
This payment will be delivered in May 2025, directly into the bank accounts of those receiving eligible benefits.
Who Qualifies for the £450 Payment?
To receive the £450, you must be receiving one of the following benefits during the qualifying period (expected to be announced by DWP shortly before payment):
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Universal Credit
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Income-based Jobseeker’s Allowance (JSA)
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Income-related Employment and Support Allowance (ESA)
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Income Support
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Pension Credit
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Working Tax Credit or Child Tax Credit (via HMRC)
Important notes:
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You must have received the benefit during the qualifying dates
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Contribution-based JSA or ESA does not qualify
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Payments are per claim, not per individual
When Will the Payment Be Made?
The government has confirmed the payment will be made in May 2025, but the exact dates will be announced closer to the time. Payments will be staggered across the month to manage processing.
No application is needed. If you’re eligible, the payment will appear automatically in your bank account with the reference including “DWP COL” or “HMRC COL”.
How Will You Receive the Payment?
The £450 payment will be deposited directly into your bank account, using the same account where you currently receive your benefits. There is no need to apply or contact DWP unless you believe you were eligible and did not receive the payment.
What to Do If You Don’t Receive It
If you believe you’re eligible but don’t receive the payment by mid-June 2025, the government will open a reporting tool on GOV.UK to help track and resolve missing payments.
Make sure your bank account details are up to date with the DWP or HMRC, and check your benefit records for any issues.
Why Is This Payment Important?
The £450 payment is intended to offset the continued rise in:
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Energy bills
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Grocery prices
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Rent and housing costs
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Basic living expenses
It provides direct support to lower-income households during periods of economic pressure, and is a critical piece of the government’s welfare support plan for 2025.
Frequently Asked Questions
Do I need to apply for the £450 Cost of Living Payment?
No. If you’re eligible, the payment will be made automatically.
Will the payment affect my existing benefits?
No. The £450 payment is not taxable and will not affect your existing benefit entitlement.
What if I’m only on contribution-based ESA or JSA?
Unfortunately, these types of benefits do not qualify. Only income-based benefits are eligible.
Can both members of a couple receive the payment?
No. The payment is per claim, not per person.
How will I know when the payment is made?
You will see a reference on your bank statement that includes “DWP COL” or “HMRC COL”.
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