UK Confirms £450 Cost of Living Payment for June 2025 – Who’s Eligible and When It’s Paid

As the UK continues to face rising costs for food, energy, and daily essentials, the government has confirmed a £450 Cost of Living Payment to help people most affected by inflation. This one-off payment, announced by the Department for Work and Pensions (DWP), is aimed at low-income households and individuals on certain benefits.

The first round of payments began in May 2025, but many eligible people will see the money in their accounts during June 2025. The good news? You don’t need to apply — if you’re eligible, the payment will land in your bank account automatically.

What Is the £450 Cost of Living Payment?

The £450 payment is part of the government’s plan to support people struggling with higher living costs. It’s non-taxable, won’t affect your other benefits, and is paid directly into the account where you usually receive your benefits.

Unlike some past schemes, there’s no need to fill out forms or apply. If you qualify, the payment comes to you automatically.

How Is the £450 Paid?

The £450 is split into two parts:

£301 for people on means-tested benefits like Universal Credit or Pension Credit.
£150 for those receiving disability benefits such as Personal Independence Payment (PIP) or Disability Living Allowance (DLA).

If you qualify for both types of support, you’ll receive the full £450.

Who Is Eligible?

You’ll get the payment if you were receiving one or more of these benefits during the qualifying period (expected between February and April 2025):

Universal Credit
Pension Credit
Income-based Jobseeker’s Allowance (JSA)
Income-related Employment and Support Allowance (ESA)
Income Support
Child Tax Credit
Working Tax Credit
PIP
DLA

Even if your payment was reduced to zero because of rent or debt deductions, you might still qualify.

When Will You Get Paid?

DWP benefits (like Universal Credit, ESA): Payments between mid-May and early June.
HMRC benefits (like Tax Credits): Payments expected between late May and mid-June.

Keep an eye on your bank account for a payment labeled “DWP COLP” or “HMRC COL Payment”.

What If You Haven’t Received It?

If you don’t see the payment by the end of June:

Check your bank account again for any unusual transactions.
Review your benefit records to confirm eligibility.
Contact DWP or HMRC — have your National Insurance number handy for quicker help.

Why Is This Support Needed?

With inflation making it harder for families to cover basic costs, this payment gives vital support to those who need it most. It’s part of the government’s effort to ease financial pressure during tough times.

Will There Be More Payments in 2025?

At the moment, this is the only confirmed Cost of Living Payment for 2025. But keep an eye on government updates later this year — especially the Autumn Statement 2025 — for news of any additional help.

Final Thoughts

The £450 Cost of Living Payment is a much-needed boost for millions of people across the UK. If you receive benefits that qualify, you don’t have to do anything — just make sure your information with DWP or HMRC is up to date and watch for the payment this June 2025.

FAQs

Q1: Do I need to apply for the £450 Cost of Living Payment?
No, the payment is automatic if you’re eligible.

Q2: How will the payment appear in my account?
Look for “DWP COLP” or “HMRC COL Payment” in your bank statement.

Q3: When will I get the payment?
Most people will get it between mid-May and late June 2025.

Q4: Will this payment affect my other benefits?
No, it won’t affect your benefits or tax status.

Q5: Could there be more payments this year?
No further payments are confirmed yet, but watch for updates later in 2025.