Rising prices across the UK have put enormous pressure on households, especially those with limited incomes. From food and fuel to rent and utilities, families are finding it harder to manage their monthly expenses. The ongoing cost-of-living crisis has led the government to step in once again, offering financial support to those most affected. In June 2025, the Department for Work and Pensions (DWP) announced a new relief measure designed to provide direct assistance to eligible individuals and families.
The £450 Cost of Living Payment June 2025 is a one-time payment targeted at people already receiving certain government benefits. This article provides all the key details about the payment—who qualifies, when and how it will be paid, and what to do if you don’t receive it. With inflation continuing to affect basic living costs, this payment comes at a crucial time for many.
£450 Cost of Living Payment June 2025
The £450 Cost of Living Payment June 2025 is part of the UK government’s ongoing efforts to support low-income households during tough economic conditions. Announced by the DWP, this payment aims to provide financial relief to those struggling with rising food, energy, and housing costs. Unlike previous recurring payments, this is a one-time grant and will be distributed automatically to eligible individuals.
This payment is specifically meant for recipients of various benefits like Universal Credit, Pension Credit, Jobseeker’s Allowance, and others. It will be credited directly to the bank accounts where individuals already receive their benefits. No separate application is required, making the process smoother for those who qualify.
Overview Table of £450 Cost of Living Payment
| Topic | Details |
| Amount | £450 (one-time payment) |
| Start Date of Payment | June 2025 |
| Final Payment Deadline | August 2025 |
| Eligibility | Benefit recipients (UC, JSA, ESA, Pension Credit, etc.) |
| Application Required | No, payment is automatic |
| Payment Method | Direct deposit to registered benefit bank account |
| Indicator on Statement | “DWP COL” or “HMRC COL” |
| Purpose | Support with food, energy bills, and basic living expenses |
Why was the new initiative of the government necessary in this era of inflation?
In recent years, inflation in the UK has hit record highs, making it difficult for low-income families to keep up with rising costs. Essential goods and services like groceries, electricity, gas, and rent have all seen noticeable price hikes. Despite earlier support measures, many families have continued to struggle with basic needs.
The £450 payment is a timely response to these challenges. It is designed to ease the immediate financial strain on vulnerable groups and to prevent households from falling deeper into hardship. By providing this direct, one-off assistance, the government aims to help people manage critical expenses without additional stress.
Who will be able to take the £450 Cost of Living Payment?
This payment is not universal—it is meant for people already receiving certain forms of financial support. If you’re part of any of the following categories, you are likely eligible:
- Universal Credit recipients
- Pension Credit beneficiaries
- Income-based Jobseeker’s Allowance (JSA) claimants
- Income-related Employment and Support Allowance (ESA) recipients
- Working Tax Credit or Child Tax Credit beneficiaries
- Housing Benefit claimants in low-income brackets
If you were receiving one or more of these benefits during the qualifying period, the payment will be automatically transferred to your registered bank account. There’s no need to apply separately.
When will you get the payment? Know the timeline
The government has announced a clear timeline for distributing the £450 Cost of Living Payment June 2025. Here’s what to expect:
- Initial payments will begin in June 2025
- Late payments, in special or pending cases, may be issued by July 2025
- Pension-linked payments could extend until August 2025
This one-time payment will not be repeated monthly. However, eligible recipients can expect it to land directly in their accounts sometime within this three-month window, depending on when their benefits were processed.
How will you get the payment?
The payment will be made directly to the same bank account where you usually receive your benefits. There’s no extra step or additional form to fill out.
On your bank statement, you may see a reference such as “DWP COL” or “HMRC COL”. This code identifies the payment as a Cost of Living grant. This simple and direct method ensures that the money reaches the intended recipients without unnecessary delays or complications.
What to do if you haven’t received a payment?
If you believe you are eligible but haven’t seen the payment by the end of July 2025, here’s what you should do:
- Check your eligibility – Were you receiving the qualifying benefits during the correct period?
- Review your bank details – Make sure your account information is correct and updated with DWP or HMRC.
- Contact the department – Reach out to DWP or HMRC for further clarification and assistance.
Delays may happen due to changes in benefit status, pending verification, or bank detail mismatches. But rest assured, support is available if you reach out on time.
Why is this £450 payment special?
While £450 may not seem like a huge amount, it can significantly impact households struggling to pay monthly bills. For many, it represents a lifeline. Here are a few ways it might be used:
- A month’s worth of groceries for a small family
- A partial or full energy bill payment
- Buying school uniforms or covering tuition fees
- Public transport passes or essential local travel costs
This payment is more than financial aid—it’s a signal that the government recognizes the challenges families are facing and is willing to act.
Are there other support schemes available?
Yes, along with the £450 payment, several other support schemes continue to provide assistance:
- Winter Fuel Payment – For older adults during colder months
- Cold Weather Payment – Issued when temperatures drop
- Discretionary Housing Payment – Helps with housing-related costs
- Free school meals and uniform grants – Available in certain areas
To learn more or apply for these programs, visit your local council’s website or speak with a benefits adviser.
In brief: Key highlights at a glance
| Topic | Description |
| Amount | £450 (one-time) |
| Eligible Groups | Universal Credit, Pension Credit, JSA, ESA, Tax Credits, etc. |
| Payment Dates | June–August 2025 |
| Application Needed? | No |
| Purpose | Support with food, energy, school, and other daily expenses |
Conclusion
The £450 Cost of Living Payment June 2025 could make a meaningful difference for thousands of UK families this summer. With inflation squeezing budgets and energy bills remaining high, this one-time payment is timely and essential. It helps cover crucial household expenses, offering some breathing space to those who need it most.
If you’re among the eligible recipients, watch your bank account for the payment, check your statements, and follow up if delays occur. Every bit of support counts—and this payment may be the help many families have been waiting for.
