As the ongoing cost of living crisis continues to put pressure on households across the UK, many are struggling with soaring bills, expensive groceries, and astronomical energy prices.
To ease this burden, the government is stepping in again, offering a £450 Cost of Living Payment, which is set to roll out in June 2025. You might be wondering who qualifies for this payment, how it works, and when it’s coming — so let’s break it all down.
Overview
Here’s a quick glance at the key details:
- Payment Amount: £450 per eligible claimant
- Start Date: From June 16, 2025
- Eligibility: UC, Pension Credit, ESA, JSA, Income Support
- Application Needed: No, it’s 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
This payment is a one-time, tax-free support initiative designed to help households struggling with financial pressures. With inflation still high, food prices refusing to come down, and energy bills weighing heavy on millions, the £450 Cost of Living Payment is one way the government hopes to offer some relief.
It’s part of a broader set of support measures, including the Energy Price Guarantee and the Household Support Fund.
Eligibility
So, who gets this payment? If you’re receiving one of the following benefits during a yet-to-be-confirmed qualifying week, you’re probably on the list:
- Universal Credit (UC)
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
A few Working Tax Credit or Child Tax Credit claimants might also qualify, but only in specific situations that the DWP confirms. However, if you only receive ‘New Style’ ESA or JSA without a qualifying income-based benefit, you won’t be eligible.
Timeline
The best part? You don’t need to apply for this payment — it’s automatic. If you’re eligible, the DWP will send the payment directly to your bank account, starting from June 16, 2025. The money will land in the same account you use for your usual benefit payments.
When it hits your bank, the reference will say “DWP COLP” followed by your National Insurance number. No letter or heads-up will come in advance, so keep an eye on your bank statement.
If the payment isn’t in your account by the end of June 2025, make sure to contact the DWP using your usual benefit communication channels.
Why is this being introduced now?
Inflation has stubbornly stayed above the Bank of England’s target, and things like energy bills, food, and transport prices are still pushing many families to the edge. The government has created this payment to help relieve some of that financial strain — the kind that can lead to rent arrears, mounting debts, or unpaid utility bills.
Key factors contributing to the payment include:
- Ongoing inflation
- High energy and utility costs
- Rising prices for food, rent, and transport
- Global economic instability
In short, this payment is meant to give families a bit of breathing room when they need it the most.
Preparation
Even though the payment is automatic, it’s wise to check a few things in advance:
- Ensure your bank details with the DWP are up to date
- Monitor your benefit statements throughout June 2025
- Look for the “DWP COLP” reference in your transactions
- Notify your benefits office if there are any changes to your circumstances
These simple steps can help avoid any delays or confusion when the payment arrives.
Additional Support
This £450 payment is just one part of a wider financial support package announced in the 2024 Budget. Other measures include:
- The Household Support Fund, which will be distributed through local councils
- Extended Energy Price Guarantee for vulnerable households
- Fuel duty freezes
- Revised Local Housing Allowance rates from April 2025
Together, these programs are designed to provide more comprehensive support for households facing rising living costs. If you qualify, this £450 could certainly help ease some of the growing financial burdens this summer.
FAQs
When is the £450 payment due?
The payments will begin rolling out from June 16, 2025.
Who qualifies for the payment?
Those receiving UC, Pension Credit, ESA, JSA, or Income Support.
Do I need to apply for this payment?
No, the payment is automatic if you’re eligible.
What will the payment reference show?
It’ll appear as ‘DWP COLP’ followed by your National Insurance number.
What if my payment doesn’t arrive?
If the payment hasn’t arrived by the end of June 2025, contact the DWP through your usual benefits communication channel.
By following these guidelines, you’ll be all set to receive the payment and make sure everything runs smoothly.
