Nicki
In May 2025, the UK government, through the Department for Work and Pensions (DWP), is providing a one-off, tax-free £450 Cost of Living Payment.
This initiative aims to support low-income households facing financial challenges due to rising living costs.
Key Details at a Glance
| Detail | Information |
|---|---|
| Payment Amount | £450 per eligible claimant |
| Payment Start Date | From May 13, 2025 |
| Eligibility Period | March 11 to April 7, 2025 |
| Eligible Benefits | Universal Credit, Pension Credit, Income-based JSA, Income-related ESA, Income Support, Working Tax Credit, Child Tax Credit |
| Application Required | No; payments are automatic |
| Payment Method | Direct deposit to registered bank account |
| Payment Reference | “DWP COLP” or “HMRC COLP” followed by National Insurance Number |
| Deadline to Receive Payment | End of May 2025 |
| Official Website | gov.uk/dwp |
Eligibility Criteria
To qualify for the £450 payment, individuals must have been receiving one of the following benefits during the eligibility period (March 11 to April 7, 2025):
- Universal Credit (excluding those with a ‘nil award’)
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
Note: Individuals receiving only “New Style” JSA or ESA, or contributory-only benefits, are not eligible unless they also receive one of the qualifying income-based benefits.
Payment Schedule
Payments will be distributed automatically to eligible individuals without the need for an application. The payment schedule is as follows:
- DWP-administered benefits: Payments from May 13 to May 24, 2025
- HMRC-administered benefits (Tax Credits): Payments from May 20 to May 31, 2025
Recipients should look for the payment reference “DWP COLP” or “HMRC COLP” followed by their National Insurance number on their bank statements.
Purpose of the Payment
The £450 Cost of Living Payment is designed to provide financial relief to households struggling with:
- Rising energy bills
- Increased food prices
- Higher housing costs
- General inflation
This payment is part of the government’s broader strategy to support vulnerable populations during economic challenges.
How to Prepare
While the payment is automatic, recipients should ensure:
- Their bank account details with DWP or HMRC are up to date
- They monitor their bank statements for the payment reference
- They report any changes in circumstances to their benefit provider promptly
Additional Support Measures
Beyond the £450 payment, the government offers other support programs:
- Household Support Fund: Provides assistance with essential costs like food and energy bills.
- Energy Bill Support: Discounts and grants for energy costs.
- Local Council Schemes: Various forms of support depending on the local authority.
Individuals are encouraged to check with their local councils or the gov.uk website for more information on available support.
The £450 Cost of Living Payment in May 2025 is a crucial support measure for many UK households facing financial difficulties.
By understanding the eligibility criteria and ensuring your information is up to date, you can ensure timely receipt of this assistance.
For further support, explore additional government programs designed to alleviate the cost of living pressures
FAQs
Do I need to apply for the £450 Cost of Living Payment?
No. If you’re eligible based on the specified criteria, the payment will be made automatically to your registered bank account.
Will this payment affect my other benefits or taxes?
No. The £450 payment is non-taxable and does not affect any existing benefits or tax credits.
What should I do if I haven’t received the payment by the end of May 2025?
If you believe you’re eligible but haven’t received the payment by May 31, 2025, contact the DWP or HMRC, depending on which benefit you receive, to inquire about your payment status.