Ashley Grahm
As rising living expenses continue to strain household budgets, the UK government has introduced a £450 Cost of Living Payment set to be rolled out in August 2025.
Administered by the Department for Work and Pensions (DWP), this one-time financial boost aims to ease the pressure on low-income households, especially during a time when utility bills, food prices, and housing costs remain high.
This £450 support payment is part of the government’s ongoing plan to help vulnerable families navigate the lasting effects of inflation.
Who Is Eligible for the £450 DWP Payment?
The £450 DWP payment is exclusively for individuals and families who were receiving means-tested benefits during the qualifying period. These benefits include:
- Universal Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
To qualify, recipients must have received one of the above benefits between 10 July and 4 August 2025.
This targeted approach ensures that financial assistance reaches those most impacted by the ongoing cost-of-living crisis.
Payment Schedule: When Will You Get Paid?
The DWP will roll out payments in phases throughout August 2025, based on the type of benefit received.
No application is necessary, and payments will be automatically deposited into claimants’ accounts.
August 2025 DWP £450 Payment Schedule:
| Benefit Type | Expected Payment Date |
|---|---|
| Universal Credit | August 12–15, 2025 |
| ESA / JSA / Income Support | August 16–20, 2025 |
| Tax Credit Recipients | August 22–26, 2025 |
| Pension Credit | August 27–30, 2025 |
Payments will appear with the reference “DWP COLP” or “HMRC COLP”, depending on which department administers your qualifying benefit.
How Will the Payment Be Delivered?
The £450 Cost of Living Payment will be sent directly into eligible claimants’ bank accounts. There is no need to apply, and the amount is non-taxable. It will not impact other benefits, tax thresholds, or benefit caps.
Key Highlights:
- Automatically processed by DWP or HMRC
- Non-taxable
- One-time payment
- No duplication (you will receive it from only one department if you qualify for multiple benefits)
Why This Payment Matters in 2025
The August 2025 Cost of Living Payment is part of a broader effort by the UK government to address the financial struggles of low-income and vulnerable groups.
With the back-to-school season, rising energy bills, and overall inflationary pressures, this £450 payment offers timely support.
Benefits of the £450 DWP Payment:
- Helps manage utility costs
- Eases burden of food and rent expenses
- Provides extra assistance during school reopening
- Reduces reliance on credit or savings
The payment is designed not only as a short-term solution but also to promote financial stability among those facing the harshest economic conditions.
Summary: £450 DWP Payment Overview
| Feature | Details |
|---|---|
| Payment Amount | £450 (one-time) |
| Start Date | August 12, 2025 |
| Eligibility Window | 10 July to 4 August 2025 |
| Benefits That Qualify | UC, JSA, ESA, IS, PC, WTC, CTC |
| Distribution Method | Direct bank deposit |
| Payment Reference | “DWP COLP” / “HMRC COLP” |
The £450 DWP Cost of Living Payment in August 2025 is a crucial support initiative designed to ease financial stress during a time of economic uncertainty.
If you’re already receiving qualifying state benefits, you don’t need to do anything—just keep an eye on your bank account in August.
For millions of UK residents, this payment could mean relief from immediate financial pressure, allowing for better management of energy, rent, and food expenses.
As prices continue to fluctuate, every bit of assistance counts—and the DWP’s timely rollout aims to deliver that when it’s needed most.
FAQs
Do I need to apply for the £450 cost of living payment?
No, the payment is automatic if you’re eligible based on your benefit status during the qualifying period.
What if I qualify for benefits from both DWP and HMRC?
You’ll receive the payment from only one department to avoid duplication, but rest assured—you won’t miss out.
Is the £450 payment taxable or does it affect other benefits?
No, it is non-taxable and does not affect any other benefits or tax thresholds.