The UK government has officially announced a new £450 Cost of Living Payment set to be rolled out in July 2025. This one-time payment aims to support households still facing financial pressure due to rising prices of food, energy, rent, and other essentials.
It comes as part of a broader government strategy to protect low-income families and individuals during economic uncertainty.
This article explains who is eligible, when the payment will arrive, how it works, and what steps you should take to make sure you receive it without delay.
Table of Contents
Reason
The decision to provide this £450 payment isn’t sudden. Even though inflation is slowing in some areas, it remains high for everyday essentials like food, electricity, rent, and transportation. Many households, especially those relying on benefits, are struggling to manage.
This one-off payment is designed to help people pay energy bills, buy groceries, or catch up on loan repayments. It’s part of the government’s plan to offer temporary yet meaningful financial support during a challenging period.
Details
This payment is entirely government-funded and delivered through the Department for Work and Pensions (DWP). No application is needed. If you qualify, the money will be paid automatically to the same account where you receive other benefits.
| Detail | Information |
|---|---|
| Payment Amount | £450 |
| Start Date | From 19 July 2025 |
| Eligible Benefits | Universal Credit, Pension Credit, ESA, JSA, Income Support |
| Application Required | No |
| Payment Method | Direct deposit via DWP |
| Payment Reference | “DWP COLP” + National Insurance number |
| Final Payment Date | By end of July 2025 |
| Official Info Source | gov.uk/dwp |
Eligibility
To be eligible for this payment, you must be receiving at least one of the following income-related benefits:
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
Some recipients of Working Tax Credit or Child Tax Credit may also qualify, depending on their circumstances. However, if you only receive New Style ESA or JSA without income-based elements, you will not be eligible.
The government will announce the specific “qualifying week” to determine who qualifies, so keep an eye on DWP updates.
Payment
There is nothing you need to do to receive the £450 payment if you are eligible. It will be deposited automatically into your bank account between 19 and 31 July 2025.
- The money will be sent to the same bank account used for your benefit payments.
- The transaction will appear with the reference “DWP COLP” followed by your National Insurance number.
- If you don’t receive your payment by 31 July 2025, contact DWP immediately.
Purpose
Several key issues prompted this cost of living support:
- Continued inflation, especially for low-income households
- Ongoing high energy costs
- Rising rent and grocery prices
- Increased travel and transport expenses
- Global economic instability
These factors have made it hard for many people to keep up, especially those on fixed or limited incomes.
Preparation
To avoid missing out on the payment, make sure to:
- Check that your bank details with DWP are current
- Confirm that you are receiving an eligible benefit
- Watch for the “DWP COLP” transaction on your statement
- Notify DWP of any recent changes, such as a new address or job
Other Support
In addition to the £450 payment, the government is offering several other support schemes:
- Household Support Fund – financial help from local councils
- Energy Price Guarantee – to reduce energy costs
- Fuel Duty Freeze – to stabilise fuel prices
- Local Housing Allowance Update – new rent assistance from April 2025
These programmes work alongside the £450 payment to ensure broad support for those most affected by the cost of living crisis.
Quick Facts
Who will get the £450 payment?
- Universal Credit recipients
- Pension Credit recipients
- Those on income-based ESA, JSA, or Income Support
- Some eligible Tax Credit recipients
What to do before receiving the payment?
- Update your bank info with DWP
- Track transactions for “DWP COLP”
- Report life changes to DWP
- Check your bank regularly in July
The £450 Cost of Living Payment in July 2025 is a targeted, one-time relief measure for people most affected by financial hardship. It represents a compassionate and proactive effort by the UK government to support those struggling to make ends meet.
If you believe you’re eligible, ensure your details are accurate and stay informed via gov.uk/dwp or by contacting DWP directly. Acting early and staying prepared can make the entire process smooth and stress-free.
FAQs
When will the £450 payment start?
Payments begin on 19 July 2025 and end by 31 July.
Who is eligible for the £450 payment?
People on Universal Credit, Pension Credit, and other income-based benefits.
Is an application needed?
No, payments are automatic for those eligible.
What will the payment reference be?
It will appear as “DWP COLP” plus your National Insurance number.
What if I don’t receive the payment?
Contact DWP after 31 July 2025 if no payment appears.
