As living expenses remain persistently high in the UK, the Department for Work and Pensions (DWP) has unveiled a new £450 Cost of Living Payment to assist households facing financial strain.
With inflation impacting energy, food, and essential goods, this support package, scheduled for May 2025, is expected to provide relief to millions of struggling individuals.
The new payment follows earlier financial aid initiatives but comes with updated eligibility criteria and payment procedures.
This article outlines everything claimants need to know about the scheme, including who qualifies, how to prepare, and what to expect during the rollout.
Key Information at a Glance
| Topic | Details |
|---|---|
| Payment Amount | £450 per eligible recipient |
| Start Date | May 6, 2025 |
| Eligible Recipients | Universal Credit, Pension Credit, ESA, Income Support, JSA recipients |
| How It’s Paid | Automatically via direct deposit |
| Need to Apply? | No – Payment is issued based on existing benefit claims |
| Payment Reference | “DWP COLP” + National Insurance Number |
Who Is Eligible for the £450 Payment?
The £450 Cost of Living Payment will be automatically issued to individuals who were receiving specific benefits during the DWP’s qualifying period. To qualify, claimants must have been receiving any of the following:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit or Child Tax Credit (in some cases)
Claimants receiving only New Style ESA or New Style JSA will not be eligible unless they also receive one of the above qualifying benefits.
When Will the Payment Be Made?
The rollout begins on May 6, 2025, and will continue over several weeks depending on bank processing times. There will be no need to apply, and no letter will be issued before the payment arrives.
Key payment details include:
- The deposit will be directly sent to the same bank account where benefits are normally received.
- The payment reference will appear as “DWP COLP” followed by the claimant’s National Insurance number.
- Those who do not receive the payment by the end of June 2025 should contact DWP via their usual benefit service.
Why Is the Government Issuing This Payment?
The UK government continues to respond to growing economic pressures and the rising cost of essentials. The £450 support is part of an ongoing effort to stabilise household finances, particularly for those on fixed or low incomes.
Primary reasons for the new payment include:
- Above-target inflation levels
- Skyrocketing energy and utility prices
- Continued disruption in global supply chains
- Rising costs of food and basic transport
This financial aid offers flexibility, allowing recipients to allocate funds toward their most urgent household needs.
What Should Eligible Claimants Do?
Although no formal application is necessary, claimants are advised to:
- Verify that bank account details with DWP are current
- Monitor benefit statements throughout May and June 2025
- Look out for “DWP COLP” on bank statements
- Notify DWP immediately if payment is missed or personal information has changed
Ensuring accurate personal information with DWP can prevent delays and ensure timely payment.
How the £450 Payment Aligns With Broader Government Aid
This payment is not an isolated initiative. It complements other support mechanisms currently offered or extended by the UK government to help combat the cost of living crisis. These include:
- Household Support Fund extensions through local councils
- Energy Price Guarantee extensions for vulnerable groups
- Fuel duty freeze
- Increased Local Housing Allowance as of April 2025
Together, these efforts aim to shield low-income and vulnerable individuals from the compounding effects of economic instability.
The £450 Cost of Living Payment in May 2025 is a timely lifeline for many UK households struggling with soaring costs.
By automatically distributing funds to those already receiving support through specific benefits, the DWP ensures immediate, targeted financial aid.
Staying informed and keeping details updated with DWP will be essential to receiving the payment without delays.
FAQs
Will everyone receiving Universal Credit automatically get the £450 payment?
Yes, as long as they were eligible during the specified assessment period and their personal details with DWP are accurate.
What happens if the payment doesn’t arrive by the end of June 2025?
Claimants should contact the DWP via their benefit service to investigate the delay or confirm eligibility.
Can someone receive the payment if they only get New Style ESA or JSA?
No, unless they also receive another qualifying benefit like Universal Credit or Pension Credit.