As the cost of living crisis continues across the UK, households are still battling rising bills, expensive grocery shops, and sky-high energy prices.
To help ease the burden, the government is stepping in once again — this time with a £450 Cost of Living Payment due in June 2025. If you’re wondering who qualifies, how it works, and when it arrives, let’s break it down.
Overview
Here’s a quick look at the essential details:
| 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
This payment is a one-off, tax-free support measure created to help households deal with ongoing financial pressure. Inflation remains stubbornly high, food prices refuse to ease, and energy bills are still affecting millions.
The £450 Cost of Living Payment is one way the government hopes to relieve some of this pressure and ease the day-to-day struggles for those on a tight budget.
It forms part of a wider range of support programmes like the Energy Price Guarantee and the Household Support Fund.
Eligibility
Now, who actually gets this payment? If you’re receiving one of the following benefits during a yet-to-be-confirmed qualifying week, you’re likely on the list.
Eligible benefits include:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
A limited number of Working Tax Credit or Child Tax Credit claimants may also qualify, but only in specific cases confirmed by the DWP. It’s worth noting that if you’re only on ‘New Style’ ESA or JSA without a qualifying income-based benefit, you won’t be eligible for this payment.
Timeline
No applications are needed for this payment. The DWP will automatically pay eligible claimants from June 16, 2025. The money will arrive in the same bank account used for your usual benefit payments.
On your bank statement, you’ll see it appear as “DWP COLP” followed by your National Insurance number. There won’t be a letter or advance notice before the payment arrives.
If it hasn’t shown up by the end of June 2025, you’ll need to contact the DWP using your regular benefit communication channel.
Reason
Why is this being introduced now? Inflation has stayed above the Bank of England’s target, household energy bills remain high, and the cost of essentials like food and transport continues to rise.
The government created this payment to reduce financial pressure and help avoid situations like rent arrears, growing debts, or unpaid utility bills.
Key reasons for the payment include:
- Persistent inflation
- Expensive energy and utility costs
- Rising prices for food, rent, and transport
- Ongoing global economic instability
The idea is to offer a little breathing space when many families need it most.
Preparation
Even though this payment is automatic, it’s a good idea to do a few quick checks:
- Make sure your bank details with the DWP are up to date
- Keep an eye on your benefit statements throughout June 2025
- Look for the payment reference “DWP COLP” in your transactions
- Notify your benefits office of any changes in your circumstances
Sorting these simple things now can help avoid delays later on.
Extras
This £450 payment is just one part of a larger financial support package announced in the 2024 Budget. Other related measures include:
- Household Support Fund provided through local councils
- Energy Price Guarantee extensions for vulnerable households
- Fuel duty freezes
- Revised Local Housing Allowance rates from April 2025
These support programmes are designed to work together and provide a more complete safety net for households dealing with rising living costs.
If you qualify, this £450 could help cover some of those growing expenses this summer.
FAQs
When is the £450 payment due?
Payments begin rolling out from June 16, 2025.
Who qualifies for the payment?
Those on UC, Pension Credit, ESA, JSA, or Income Support.
Do I need to apply for this payment?
No, it’s automatic based on your benefits status.
What will the payment reference show?
It’ll appear as ‘DWP COLP’ plus your National Insurance number.
What if my payment doesn’t arrive?
Contact DWP via your usual benefit contact channel after June 2025.
I am a few pounds over to claim pension credit, yet l am struggling.
It seems under those on pension credit receive so much more extra financial support .lt seems so unfair.