Millions across the UK are continuing to feel the squeeze from soaring prices and increasing household bills. In light of this, the Department for Work and Pensions (DWP) has confirmed a new one-off £450 Cost of Living Payment, due to begin rolling out from June 16, 2025.
If you’re currently receiving benefits like Universal Credit or Pension Credit, this support could offer some real relief.
Here’s everything you need to know—who qualifies, how you’ll get it, and what else the government’s lining up.
Overview
The £450 payout is tax-free and will arrive automatically—no paperwork or applications required. It’s meant to ease the pressure from everyday costs like food and energy. For many low- to middle-income households, it could be just the breathing space they need as inflation continues to bite.
| Detail | Information |
|---|---|
| Payment Amount | £450 per eligible person |
| Payment Start Date | From June 16, 2025 |
| Eligibility | UC, Pension Credit, ESA, JSA, Income Support |
| Application Needed | No – paid automatically |
| Payment Method | Direct bank transfer from DWP |
| Bank Statement Label | “DWP COLP” + National Insurance number |
| Deadline to Receive | End of June 2025 |
| DWP Website | www.gov.uk/dwp |
Eligibility
Not sure if you’re covered? This support is aimed at people receiving specific income-based benefits during a qualifying week (yet to be officially set). Here’s what qualifies:
- Universal Credit
- Pension Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
Some people on Working Tax Credit or Child Tax Credit might also be included, though that will be confirmed later. Just a note—if you’re only on “New Style” ESA or JSA, you won’t be eligible unless you also get an income-based benefit.
Process
The good news? You don’t need to do anything. The DWP will send the money straight to your bank account. Watch for a payment reference that says “DWP COLP” followed by your National Insurance number.
And if it’s not there right away, don’t panic. Payments are being made in phases starting June 16 and should be completed by the end of the month. Still nothing after that? Then it’s worth reaching out to the DWP via your usual benefit contact route.
Purpose
Why this payment now? Simple—it’s meant to help households stay afloat amid continued financial strain.
With inflation staying stubbornly high, and prices for food, rent, and energy showing no sign of easing, the government hopes this cash injection can help people avoid debt, cover their basics, and reduce financial stress.
Steps
To make sure there’s no hiccup in receiving the payment:
- Double-check your bank details with the DWP—old info could block the payment
- Review your benefit letters or statements in June
- Look out for the reference “DWP COLP” in your transactions
- Notify the DWP of any recent changes—like moving or switching banks
A little prep now can save a lot of hassle later on.
Extras
The £450 is part of a wider support effort introduced under Budget 2024, aimed at protecting vulnerable groups. You could also benefit from:
- The Household Support Fund, distributed locally via councils
- The Energy Price Guarantee, with extra help for pensioners and disabled people
- A freeze on fuel duty to reduce travel costs
- New Local Housing Allowance rates (updated from April 2025)
Altogether, these programs offer a stronger safety net to help people stay on their feet.
At the heart of it, the government’s goal is to ease the financial pressure in manageable steps. And if you qualify, this £450 could offer real, timely support—now that you know what to expect.
FAQs
Who gets the £450 payment?
People on UC, ESA, JSA, Pension Credit, or Income Support.
Do I need to apply for the payment?
No. It’s automatic if you’re eligible.
When will the payment arrive?
Between June 16 and end of June 2025.
What does ‘DWP COLP’ mean on my bank?
It’s the payment reference with your NI number.
What if I don’t get paid by June end?
Contact DWP using your usual benefit channel.
