The Department for Work and Pensions (DWP) has confirmed a £450 one-time Cost of Living Payment that will be issued in August 2025. Targeting millions of low-income households, the payment is designed to ease the ongoing financial strain of rising food, energy, housing, and transport costs.
Purpose of the £450 Payment
The UK’s cost-of-living crisis continues to impact everyday essentials. Grocery prices remain volatile, energy bills stay elevated despite seasonal fluctuations, and housing costs put increasing pressure on families.
The £450 payment forms part of a broader government initiative aimed at supporting vulnerable households. The goal is simple: ensure that people on low incomes have enough to cover critical daily expenses without sliding into further debt.
Key Details of the £450 Cost of Living Payment
| Detail | Information |
|---|---|
| Country | United Kingdom |
| Administering Body | Department for Work and Pensions (DWP) |
| Payment Amount | £450 |
| Payment Type | One-off Cost of Living Support |
| Target Group | Low-income households on qualifying benefits |
| Payment Month | August 2025 |
| Application Required | No |
| Official Website | gov.uk |
Eligibility Criteria for the August 2025 Payment
To qualify, households must have been in receipt of at least one of the following benefits between July 10 and August 4, 2025:
- Universal Credit
- Pension Credit
- Income Support
- Working Tax Credit
- Child Tax Credit
- Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA)
Importantly, there is no separate application. The DWP and HMRC will automatically identify eligible claimants and issue payments.
Payment Schedule for August 2025
To manage the scale of distribution, the £450 payment will be issued in stages across the month:
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| Benefit Type | Estimated Payment Dates |
|---|---|
| Universal Credit | August 12–15, 2025 |
| Income Support / ESA / JSA | August 16–20, 2025 |
| Tax Credits | August 22–26, 2025 |
| Pension Credit | August 27–30, 2025 |
This staggered schedule ensures smooth processing across millions of bank accounts.
How the £450 Will Be Paid
The payment will be deposited directly into the same bank account used for regular benefit payments. Claimants should look for a reference such as “DWP COLP” (for DWP-administered benefits) or “HMRC COLP” (for tax credits).
Key features include:
- No application required – eligibility is automatic.
- Tax-free – the payment will not be subject to income tax.
- No impact on benefits – it does not affect caps or reduce other entitlements.
Why This Payment Matters in 2025
For millions of UK families, the £450 payment is more than a headline—it’s a vital financial buffer. The payment helps cover:
- Rising food prices in supermarkets and local shops.
- High energy bills, which remain a significant strain year-round.
- Rent and housing costs, particularly in urban centres.
- Transport expenses, hitting commuters and working families hardest.
By cushioning these costs, the government aims to provide short-term stability during another difficult financial year.
Preparing for the Payment
While no action is required to receive the £450, eligible households can take steps to ensure everything goes smoothly:
- Verify Benefit Status – check that you are in receipt of a qualifying benefit during the eligibility period.
- Confirm Bank Details – make sure the account linked to your benefits is up to date.
- Monitor Accounts – look out for the “DWP COLP” or “HMRC COLP” reference in August 2025.
This preparation ensures no delays in receiving the payment.
The Bigger Picture
The £450 Cost of Living Payment is part of a series of government relief measures rolled out over recent years to counteract inflation, energy price spikes, and housing market challenges. While some critics argue that these one-off payments are temporary fixes, supporters maintain they are essential in preventing the most vulnerable households from falling deeper into hardship.
FAQs – £450 Cost of Living Payment
1. Who will receive the £450 Cost of Living Payment in August 2025?
Households receiving qualifying benefits such as Universal Credit, Pension Credit, Income Support, ESA, JSA, Child Tax Credit, or Working Tax Credit during the eligibility window will automatically receive the payment.
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2. Do I need to apply for the £450 payment?
No. Payments are automatic for eligible households—there is no application process.
3. When will I receive the payment?
Payments will be issued in stages between August 12 and August 30, 2025, depending on the benefit you receive.
4. How will the payment appear in my bank account?
It will show as “DWP COLP” for benefits paid by DWP, or “HMRC COLP” for tax credit recipients.
5. Will the £450 payment affect my other benefits or taxes?
No. It is tax-free, will not affect benefit caps, and will not reduce other entitlements.