UK £450 Cost of Living Support in August 2025 – Who’s Eligible and When You’ll Be Paid

Millions of low-income households in the UK are set to receive vital financial support in August 2025. The Department for Work and Pensions (DWP) has announced a one-time £450 Cost of Living Payment, aimed at helping people handle the impact of inflation and rising daily expenses.

If you’re on certain benefits, this payment could hit your account soon—without the need to apply.

Overview

To combat inflation and provide relief from increasing costs, the UK government will give a £450 payment to eligible low-income families. This payment is part of the August 2025 cost-of-living support package and will be delivered through the DWP.

The aim is to help those most affected by financial pressure cover essential needs like food, healthcare, rent, and energy bills.

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Here’s a quick breakdown:

Payment

The £450 DWP payment is a one-time support initiative for families who are already getting state benefits. The rising cost of food, rent, energy, and healthcare has put pressure on millions of households. This payment is meant to ease that burden and ensure people don’t fall behind on essential costs.

It’s a direct response to economic challenges caused by persistent inflation. The government wants to make sure support reaches those who are truly in need.

Who Qualifies

To be eligible for the £450 payment in August 2025, you must have received at least one of the following benefits between July 10 and August 4, 2025:

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• Universal Credit
• Pension Credit
• Income Support
• Working Tax Credit
• Child Tax Credit
• Jobseeker’s Allowance (JSA)
• Employment and Support Allowance (ESA)

You don’t need to apply separately—the DWP will automatically process the payment if you meet the conditions.

Payment Schedule

The DWP will send out the payments on different dates in August 2025, depending on which benefit you receive.

How You’ll Be Paid

All payments will be made via direct deposit. You don’t have to submit an application or contact the DWP. If you’re eligible, the money will be paid directly into the same account where you already receive your benefits.

The payment will appear in your account with a reference like DWP COLP or HMRC COLP, depending on which agency handles your benefits.

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Important notes:

• No application required
• It will not count toward benefit caps
• This one-time payment is tax-free
• It doesn’t affect your existing benefits

Why It Matters

This £450 payment is more than just extra money—it’s a way for families to stay afloat during financially difficult times. The cost of living in the UK has risen sharply in recent years, and essentials like food, rent, transport, and utilities are now more expensive than ever.

Here’s why this support is crucial:

• High inflation has pushed household budgets to the limit
• Energy bills remain a significant burden
• Food and rent costs are rising, especially in cities
• Public transport expenses are up, impacting daily commutes

This one-time payment helps bridge the gap and provides some breathing room for households trying to manage on limited income.

Final Thoughts

The £450 DWP Cost of Living Payment arriving in August 2025 will offer meaningful support to those who need it most. While it won’t solve every financial problem, it provides immediate relief for millions of families across the UK.

Make sure your benefit payments are up to date, and check your account around the scheduled dates—because if you’re eligible, no action is required on your part.

FAQs