£450 Cost of Living Support Confirmed in UK: In today’s time, the blow of inflation has affected every household. The situation in the UK is no different. Rising inflation, expensive electricity and water bills, increased prices of food items and energy crisis have broken the back of the common people. It is becoming difficult for many families to manage the household budget.
In such a situation, the UK government has made a relief announcement. The government is going to give a one-time ‘cost of living payment’ of 450 pounds in June 2025.
Now this question must be coming to your mind that who will get this payment, how will it be given and when will it be given? Don’t worry, in this article I will explain the whole information to you in detail in easy language.
What is the Purpose of This Payment?
This step of the government is to give financial relief to those families who are being most affected due to rising inflation.
Come on, when electricity and gas bills reach thousands of pounds, food and drink become more expensive than before, and on top of that, the expenses of children’s education, transport fare and the prices of everyday goods start skyrocketing – then any family faces a huge financial burden.
This is why the government has decided to give 450 pounds as this relief amount so that people can get some relief. This money will be tax-free, that is, you will not have to pay any tax on it.
This scheme is part of the many relief initiatives of the government that were announced in the 2024 budget. These include:
- Energy Price Guarantee Scheme
- Household Support Fund
- Fuel duty exemption
- Changes to Local Housing Allowance
Key Points About the Payment
Let’s first take a look at how this payment will be paid:
- Payment amount: £450 per eligible person
- Start date: From 19 June 2025 (expected)
- Eligibility: If you’re receiving any of the following benefits:
- Universal Credit (UC)
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Application requirement: No, automatically paid if eligible
- Payment method: Direct deposit into your bank account
- Appears on bank statement: DWP COLP + your National Insurance number
- Payment deadline: End of June 2025
Eligibility Rules
Now the question is – who will be eligible?
People who are receiving the following benefits will automatically receive this amount:
- Universal Credit (UC)
- Pension Credit
- Income-based JSA
- Income-related ESA
- Income Support
In addition, in some cases people receiving working tax credit or child tax credit may also be eligible. The DWP will issue specific guidelines for this.
Remember – if you are only receiving ‘new style’ ESA or JSA, you will not receive this payment. You must be receiving income-based benefits for this.
How and When Will You Get the Payment?
You do not need to fill in any separate form or apply for this payment. If you are eligible, the government will deposit this money directly into your bank account based on its records.
Note that this payment will come into the same account in which you already receive your benefits.
When the money arrives, the transaction will look like this on your bank statement:
DWP COLP + your National Insurance number
If you haven’t received this money by 30 June 2025, you should contact the DWP.
Why Is This Payment Being Paid Now?
Inflation has consistently remained above the Bank of England’s target level.
Rapid rises in energy bills, food prices, house rents and transport costs have disrupted the budgets of millions of families.
The main reasons why this payment is being paid are:
- Persistently high inflation
- Increases in energy and utility bills
- Rising food prices
- Rises in rent
- Global economic instability
The government’s aim is to provide some relief to people with this amount so they can pay off outstanding rent, credit bills or energy bills and get some financial stability.
How to Prepare?
Although you will receive this payment automatically, it is a good idea to keep a few things in mind so you don’t run into any problems:
- Keep your bank details up to date: If there are any changes to your bank account, let the DWP know as soon as possible.
- Keep an eye on your statements: Check your bank statements regularly during June 2025.
- Check the “DWP COLP” reference: This is the reference you will see when you receive a payment.
- If there are any changes: Let your benefits officer know immediately if there are any changes to your income or circumstances.
Read more: Understanding DWP’s 2026 PIP Policy Changes
Other Government Support
This £450 payment is just one part of the government’s many relief schemes. Other schemes are also running alongside:
- Household Support Fund: Distributed through local councils.
- Energy Price Guarantee: Provides relief to vulnerable and older households.
- Fuel duty deferral: Affects the price of petrol and diesel.
- Reforms to Local Housing Allowance: Comes into effect from April 2025.
If you are eligible, the £450 will be a great relief to your finances, especially during the summer when other expenses tend to rise.
Frequently Asked Questions (FAQs)
When will the £450 be paid?
Payments are expected to start on 19 June 2025.
Who is eligible?
Those receiving UC, Pension Credit, ESA, JSA or Income Support.
Do you need to apply?
No, the payment will automatically come into your account if you are eligible.
How will the payment appear on your bank statement?
In the name of DWP COLP + your National Insurance number.
What to do if you don’t get paid?
If you do not receive your payment by the end of June 2025, contact your usual DWP contact.
Conclusion
This scheme is not just a rule change, but an economic support for millions of people who are struggling to make ends meet these days.
If you are prepared with the right information, you will be able to take full advantage of this scheme.
- Keep your documents correct
- Give timely updates
- Seek advice from support groups
