£450 Cost of Living Payment: The £450 Cost of Living Payment has been confirmed by the UK government to support low-income households dealing with ongoing financial pressure. With inflation still high, energy prices unmanageable for many, and essential goods like food continuing to rise in cost, this relief payment arrives at an important moment for struggling families.
This article explains everything you need to know about the £450 Cost of Living Payment coming in June 2025. From who qualifies, to how and when it will be paid, we’ll break down all the key points. You’ll also find a useful overview table, benefit eligibility details, and steps to make sure you receive it without delays.
£450 Cost of Living Payment – What You Need to Know
The government is providing a £450 Cost of Living Payment starting in mid-June 2025. It’s a one-time, tax-free financial boost given automatically to people on qualifying benefits. No application is needed, and the amount will be paid directly into the bank accounts already registered with the Department for Work and Pensions (DWP).
This payment is part of a broader effort to support families during difficult times. It complements other assistance such as the Energy Price Guarantee and Household Support Fund, aimed at keeping vulnerable households afloat.
Overview
| Detail | Information |
| Payment Amount | £450 per eligible claimant |
| Start Date | From June 16, 2025 |
| Eligibility | UC, Pension Credit, ESA, JSA, Income Support |
| Application Needed | No – automatic if you qualify |
| Payment Method | Direct deposit to your DWP-registered account |
| Reference Code | “DWP COLP” + National Insurance number |
| Deadline to Receive | End of June 2025 |
| Official Website | gov.uk/dwp |
Purpose
The £450 Cost of Living Payment has been introduced to help UK residents cope with the rising cost of living. Inflation has stayed above target, energy bills are affecting millions, and everyday prices for essentials are not easing. This payment is meant to reduce short-term financial pressure on those already struggling to cover rent, food, energy, and transportation costs.
It also plays a preventative role, helping families avoid rent arrears, unpaid bills, or increasing debt.
Eligibility
Not everyone will receive the £450 Cost of Living Payment—you must be on a qualifying benefit during a specified period. Eligible benefits include:
- Universal Credit
- Pension Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
In some cases, claimants of Working Tax Credit or Child Tax Credit may also qualify. However, people only receiving ‘New Style’ ESA or JSA without an income-based benefit will not be eligible.
Timeline
There is no need to apply for this payment. It will be sent out automatically by the DWP starting June 16, 2025. The funds will be deposited directly into the bank account linked to your existing benefits.
On your bank statement, the payment will appear as “DWP COLP” followed by your National Insurance number. You won’t receive a letter or notice beforehand, so it’s important to monitor your account closely. If you haven’t received it by the end of June 2025, you should contact DWP through your normal benefit communication method.
Reason
This payment has been introduced due to continued economic challenges in the UK. While inflation was expected to ease, prices for energy, food, and services remain high. Many families continue to feel the pinch, especially those on low or fixed incomes.
The main reasons behind this support payment include:
- Inflation that remains above expected levels
- High utility and energy costs
- Increasing prices for food, rent, and transport
- General financial strain caused by global economic instability
This payment gives households some temporary relief and breathing space.
Preparation
Although you do not need to apply for the £450 Cost of Living Payment, you can take a few simple steps to prepare:
- Ensure your bank details with DWP are correct and updated
- Keep track of your benefit statements during June 2025
- Look for the payment reference “DWP COLP” in your bank transactions
- Notify your benefit office if there are any recent changes in your circumstances
Taking care of these details will help you receive the payment on time and without issues.
Extras
The £450 Cost of Living Payment is just one part of a larger financial assistance package from the UK government. Other related support includes:
- Household Support Fund: Offered through local councils to help families in urgent need
- Energy Price Guarantee Extensions: For vulnerable homes to protect them from rising bills
- Fuel Duty Freezes: Keeping petrol prices steady
- Revised Local Housing Allowance Rates: Updated in April 2025 to reflect local rental markets
These additional measures work together to create a safety net for households who are finding it hard to manage rising living costs.
FAQs
When is the £450 payment due?
The payments begin rolling out from June 16, 2025, and will continue until the end of the month.
Who qualifies for the payment?
Anyone receiving UC, Pension Credit, Income Support, or income-based ESA or JSA is eligible.
Do I need to apply for this payment?
No, the payment is automatic if you are receiving one of the qualifying benefits.
What will the payment reference show in my bank account?
It will show as “DWP COLP” followed by your National Insurance number.
What if I don’t receive the payment?
Contact the DWP using your usual benefit contact method after June 30, 2025.
Final Thought
The £450 Cost of Living Payment offers essential financial support to many UK residents during tough times. If you receive a qualifying benefit, you’ll automatically receive this payment, helping ease the burden of everyday expenses. Make sure your bank details are up to date, and keep an eye on your statements from mid-June.
If this article helped you, feel free to comment, share, or explore more cost-of-living updates and support options on our site. You deserve to stay informed and supported.
