In response to the ongoing financial pressures caused by inflation and rising living costs, the UK Government is rolling out a new £450 Cost of Living Payment in May 2025. Managed by the Department for Work and Pensions (DWP), this one-off payment is designed to ease the burden on millions of low-income families and individuals across the country.
Who Can Receive the £450 Cost of Living Payment?
This payment targets those receiving key means-tested benefits. Eligibility is based on having received any of the following benefits between 1 March and 31 March 2025:
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Universal Credit
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Pension Credit
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Income Support
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Income-based Jobseeker’s Allowance (JSA)
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Income-related Employment and Support Allowance (ESA)
It’s important to note that claims made outside this qualifying window typically won’t be accepted unless under special appeal conditions.
How and When Will Payments Be Made?
Starting from 14 May 2025, the DWP began distributing funds directly into the bank accounts of qualifying recipients. These payments usually appear on bank statements as “DWP COL.” Most payments will be completed by the end of May. However, those receiving payments through tax credits, handled by HM Revenue and Customs (HMRC), should expect their funds between 3 June and 7 June 2025.
Also Read – DWP £812 Budgeting Loan 2025: Know Application, Eligibility & Payment Dates
| Benefit Group | Payment Handler | Payment Window |
|---|---|---|
| Universal Credit Recipients | DWP | 14 May – 31 May 2025 |
| Pension Credit Beneficiaries | DWP | 14 May – 31 May 2025 |
| Income-based JSA/ESA Recipients | DWP | 14 May – 31 May 2025 |
| Tax Credit Recipients | HMRC | 3 June – 7 June 2025 |
Why Is This Payment Important?
With inflation driving up essential costs like groceries, rent, and energy bills, this £450 payment offers a vital financial cushion for households on tight budgets. Unlike some previous government relief measures that had restrictions on spending, this payment offers full flexibility — recipients can use it however they see fit, whether that’s groceries, bills, or emergency expenses.
The payment also fits within a broader safety net that includes energy bill subsidies, housing assistance programs, and local food aid initiatives.
What To Do If You Haven’t Got Your Payment Yet?
If you haven’t received your payment by early June and believe you’re eligible, the first step is to verify your details, such as bank account info and National Insurance number, are correct on your benefits profile. Sometimes, minor errors cause delays.
The DWP advises waiting until 7 June 2025 before making an inquiry. If after that date your payment is still missing despite accurate details, you should report the issue through the official DWP website’s missing payment service.
Additional Insight: How This Payment Fits into the UK’s Broader Cost-of-Living Strategy
This £450 grant is part of a layered approach by the Government to address the cost-of-living crisis. Alongside one-off payments, ongoing schemes like the Warm Home Discount and local council support services aim to provide both immediate and sustained relief. For many, this payment will be a welcome boost, but it’s also a reminder of the continuing economic challenges many face.
FAQs: Everything You Need to Know About the £450 Cost of Living Payment
Q: Who qualifies for this payment?
A: Individuals or households receiving Universal Credit, Pension Credit, Income Support, income-based JSA, or income-related ESA during March 2025 are eligible.
Also Read – DWP 2025 Extra Cost of Living Payment: Find Out If You Qualify
Q: When will the payments be made?
A: Payments started on 14 May 2025 and will continue through May for DWP-administered benefits. Tax credit recipients will get theirs in early June.
Q: Is this payment taxable or counted against my benefits?
A: No, this payment is tax-free and does not affect other benefits or the benefit cap.
Q: What if I don’t get my payment by June?
A: Verify your details are correct and wait until after 7 June 2025. If it’s still missing, report it via the DWP website.
Q: Do I have to pay back this £450?
A: No, this is a one-time non-repayable grant, not a loan.
f you’re eligible, keep an eye on your bank account in the coming weeks and take advantage of this government support to help manage your household expenses. For detailed information, always refer to the official GOV.UK website.