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

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 July 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 July 19, 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 July 19, 2025 (Tentative Date). 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 July 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.

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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.

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FAQs

When is the £450 payment due?
The payments will begin rolling out from July 19, 2025 (Expected Date).

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 July 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.

Meet Sienna Johns, a writer driven by curiosity and a love for meaningful stories. From early mornings scanning headlines to late nights reading about star signs, she blends real-world news, educational insights, and astrology into content that feels both personal and relevant. When she’s not writing, you’ll find her journaling at a quiet café or helping friends make sense of their birth charts.

29 thoughts on “UK Confirms £450 Cost of Living Payment for July 2025? – Who’s Eligible and When It’s Paid

  1. Really hoping for this due to being in hospital and pip not allowed in use till I leave I’m on low budget thanks

  2. Hi, I am on Universal Credit and have not received my £450 yet which I should be eligible for.

    Kind regards
    Wendy Breakspear

    1. It’s all a load of BS people need to stop saying that cash is available when it’s not if in doubt call DWP

  3. Only people who don’t contribute to UK by working get it.
    So the les you do the more you get from us NOT the government!!!
    I think it’s best to sit in a pub drink a few beer from us the working tax payer.

    1. Who do u think u r im a domacillary carer I contributed by working but still get it due to low hours and not earning enough not everyone is able to work disabilities etc u have no idear so butt out stupid people

      1. Well said sam everyone has different disabilities and their not all the same so before use jump on bandwagon then check to make sure u have a clue what bubbles your trying to chat silly boy

    2. Who the hell do you think you are.
      My husband and I have both worked for over 30years in our country of birth, BRITAIN.
      IT’S NOT OUR FAULT THAT ILL HEALTH AND HEART ATTACK HAVE PUT US IN A POSTION OF NOT BEING ABLE TO HELP OURSELVES ANY LONGER. ALSO MY HUSBAND IS A MILITARY VETERAN WHO SERVED HIS COUNTRY, DID YOU!!!

    3. I agree with you people that work are penalised for working it’s as if we don’t have the same bills to pay

  4. I telephoned universal credit regarding this on Friday who said that there were no cost of living payments being paid out this year. What is happening?

  5. It all belongs to jesus christ lord of all so believe to receive pray for and see the holy spirit come alive in you Amen. Power in the word …..stay blessed

  6. Here’s a suggestion, instead of handing them more free money, try getting them off their fat backsides and into work. Why should those of us that have a full time job and pay rent/council tax/taxes etc pay for the workshy layabouts .

    1. I work full time and as a white British male I got told by my local council that I’m not a priority for housing so have to rent privately at a cost of 1100.00 a month which over 2 3rds of my monthly wage if didn’t get help I’d be working for nothing.
      I agree there’s lazy people out there but please don’t tar everyone with same brush I work full time in london and thanks to khan and labour who put immigrants 1st I have to get help the money I get is money I pay in

    2. Not everyone on UC is a lazy shit! I work full time at a school and my wages just pay for my rent. So I have to get top up to survive or me and my son would be on the streets.
      Most of us probably don’t want to be on UC but have no choice with wages being so low.
      Just be careful and don’t put everyone in the same box that’s on UC.
      I agree there’s lots of people that do take the piss and don’t work and get a ridiculous amount of money, trust me that pisses me off as well.
      You never really know someone’s situation so try not to judge.

  7. Will I get the vos5 liveing payment I love in Dumfries galloway in Scotland I am 73 years of age and. Strugling

  8. Why doesn’t people on pip not recieve the 450 pounds colp when every body on the benefits you are asking for get it it’s absolutely ridiculous why people on pip don’t get it shame on yous

  9. I’ll believe this when I see it in my bank account. I just looked on the government website, it says clearly there that this is not happening. That was the update on 16th june

  10. I hope it will come to my account soon, as it will come very helpful and in handy for other things i have to do, as also I’m on Universal Credit and I’m eligible for it.

  11. This has been doing the rounds since February. Saying anything from £250-850 one off payment. So I contacted my MP who confirms NO COL PAYMENT THIS YEAR…

    So if anyone dies get it please shout out. Today 24/6/25. Do done should have had it by now. If it is real.

    1. I have contacted Universal credit and they have told me that there’s NO more cost of living payments this year. There’s nothing on the DWP website either. Maybe we will receive good news soon.

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