The Department for Work and Pensions (DWP) has officially announced a new £450 Cost of Living Payment aimed at supporting low-income households during the ongoing financial challenges. As inflation and essential living costs remain high in the UK, this additional support will provide crucial relief to millions of eligible individuals. Set to roll out in May 2025, the payment is part of the government’s broader effort to help vulnerable families manage energy bills, food prices, and daily necessities without falling into debt or poverty.
This payment follows previous cost of living packages but introduces some new eligibility rules and payment methods that claimants must understand clearly to receive their benefit on time.
New £450 Cost of Living Payment Announced by DWP
| Topic | Details |
|---|---|
| Payment Amount | £450 per eligible claimant |
| Payment Date | Starting May 6, 2025 |
| Eligibility | Universal Credit, Pension Credit, ESA, Income Support, JSA recipients |
| How Paid | Direct deposit into the bank account registered with DWP |
| Need to Apply? | No, automatic payment based on existing benefit claims |
| Official Website | www.gov.uk/dwp |
Who Qualifies for the New £450 Payment?
The DWP has confirmed that several groups of benefit recipients are eligible for the £450 Cost of Living Payment. To qualify, individuals must have been receiving certain benefits during a specified assessment period.
Eligible Benefits Include
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Universal Credit
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Pension Credit
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Income-based Jobseeker’s Allowance (JSA)
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Income-related Employment and Support Allowance (ESA)
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Income Support
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Working Tax Credit or Child Tax Credit (in certain cases)
Claimants must have been entitled to one of these benefits during the qualifying week, which DWP will announce soon. Receiving only New Style ESA or New Style JSA will not qualify an individual for the payment unless they also receive another qualifying benefit.
Key Payment Details and Timeline
DWP plans to issue the £450 payments directly to eligible claimants without requiring any application. The money will be deposited into the same bank account where benefits are usually paid.
Important Points About the Payment
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Payments will begin from May 6, 2025
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Distribution may take several weeks depending on banking processes
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There will be no separate notification letter before the deposit
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Payment reference will appear as “DWP COLP” followed by the claimant’s National Insurance Number
Anyone who believes they are eligible but does not receive the payment by the end of June 2025 should contact DWP through their usual benefit service.
Why Has the £450 Payment Been Introduced?
The UK government remains under pressure to address the rising cost of essential goods and services. Energy costs, rent, and food prices continue to burden low and middle-income families, making additional financial support necessary.
Main Reasons for the New Payment
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Inflation rates remain above target levels
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High energy and utility bills across the country
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Ongoing impact of global supply chain disruptions
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Increase in basic food costs and transportation expenses
The £450 payment is intended to provide immediate, flexible support that households can use according to their individual needs.
What You Should Do to Prepare
Eligible claimants do not need to apply separately, but it is important to ensure all personal information with DWP is up to date.
Steps to Take
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Check that your bank account information registered with DWP is correct
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Monitor your regular benefit statements in May and June 2025
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Be alert for the payment reference “DWP COLP” followed by your National Insurance number
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Contact DWP immediately if your details have changed or if you do not receive the payment
Keeping your details updated helps avoid any unnecessary delays in receiving the payment.
How This Payment Fits into Broader Government Support
The £450 payment is part of a wider framework of financial support offered by the UK government in response to the ongoing cost of living crisis. Other measures include:
Additional Support Measures
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Extension of the Household Support Fund to local councils
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Energy Price Guarantee extensions for certain groups
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Fuel duty freezes
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Raising Local Housing Allowance rates in April 2025
These measures are designed to work together to protect the most vulnerable individuals from financial hardship.
FAQs
Who will receive the £450 Cost of Living Payment?
People on Universal Credit, Pension Credit, income-based ESA, Income Support, and income-based JSA during the qualifying period will receive it automatically.
When will the £450 payments start?
Payments will start from May 6, 2025.
Do I need to apply for the £450 payment?
No, the payment will be issued automatically to eligible individuals.
What happens if I do not receive the payment?
If you are eligible but do not receive the payment by the end of June 2025, contact DWP using your usual benefit contact methods.
Will this payment affect my other benefits?
No, the £450 Cost of Living Payment is tax-free, does not count as income, and will not affect your existing benefits or tax credits.
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