The UK government, through the Department for Work and Pensions (DWP), has confirmed a one-off £450 Cost of Living Payment to be distributed in June 2025. This measure is intended to provide financial relief to households most affected by the ongoing cost-of-living crisis. It is a non-taxable, non-repayable grant, and forms part of the broader government response to economic challenges such as inflation, high energy prices, and rising food and housing costs.
Unlike previous tiered payments (£301-£900 in 2023-2024), the 2025 model simplifies support by introducing a single, flat-rate payment of £450.
Summary Table: UK £450 Cost of Living Payment Confirmed
| Key Point | Details |
|---|---|
| Payment Amount | £450 (one-time, non-taxable) |
| Payment Window | June 13 to June 31, 2025 |
| Eligibility Period | June 11 to July 7, 2025 |
| Qualifying Benefits | Universal Credit, Income-based JSA, Income-related ESA, Pension Credit, Income Support, Working/Child Tax Credit |
| Administered by | DWP (Department for Work and Pensions) and HMRC |
| Application Required | No, payments are automatic |
| Official Site | https://www.gov.uk |
Eligibility Criteria for the £450 Payment
To receive the payment, you must have been receiving one of the following means-tested benefits during the qualifying period (June 11 to July 7, 2025):
- Universal Credit (excluding ‘zero award’ cases not due to deductions)
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit (handled by HMRC)
Important Notes:
- You must have had an active claim during the window.
- Contributory and New Style JSA/ESA do not qualify as they are not means-tested.
- If your payment was reduced to zero due to sanctions (excluding deductions), you will not qualify.
Payment Schedule and Distribution Details
The payment schedule has been split based on the issuing authority:
- DWP Recipients (e.g., Universal Credit, Pension Credit, etc.): June 13 to June 24, 2025
- HMRC Recipients (e.g., Tax Credits): June 20 to June 31, 2025
All payments are automatic. There is no need to apply or contact the DWP unless an issue arises.
Bank Statement Reference
- DWP Payments:
DWP COLP June 2025 - HMRC Payments:
HMRC COLP June 2025
How Will You Receive the Payment?
Payments will be made to the same bank account used for your existing benefit claims. The payment is:
- Tax-free
- Not counted as income for benefit calculations
- Exempt from deductions (e.g., for debts or arrears)
Why Is This Payment Being Issued?
The £450 Cost of Living Payment is a direct response to:
- Ongoing inflation and elevated food prices
- High energy bills (average still near £1,800/year)
- Record rental increases
By targeting households on means-tested benefits, the government aims to reduce short-term financial hardship and improve purchasing power during an economically volatile period.
Who Will Benefit Most?
The following groups are likely to experience the most benefit:
- Single parents with children
- Pensioners living alone
- People with disabilities on low incomes
- Low-income working families on Universal Credit
- Renters struggling with increased housing costs
This payment can assist with expenses such as:
- Utility bills
- Food and groceries
- Transport costs
- Rent and council tax
What to Do If You Don’t Receive the Payment
If you’re eligible but haven’t received the payment by July 1, 2025:
- Wait until June 1 before contacting authorities (delays are possible).
- Check your benefit account for any missed communication or issues.
- Contact DWP or HMRC based on the type of benefit you receive.
- Consult Citizens Advice or local charities if disputes arise.
Warning: Avoid Scams
Scammers often exploit benefit announcements. Be cautious of:
- Texts or emails asking you to “apply” or “claim” your payment
- Links to unofficial websites
- Calls asking for bank information
DWP and HMRC will never contact you to ask for your bank details or personal info regarding this payment.
Always refer to the official site: https://www.gov.uk
Frequently Asked Questions (FAQs)
1. Do I need to apply for the £450 Cost of Living Payment?
Ans. No, payments are made automatically to those who qualify.
2. Will the payment affect my current benefits?
Ans. No, it is tax-free and does not impact your existing benefit entitlements.
3. What if I missed the qualifying period?
Ans. Unfortunately, you will not be eligible if you were not receiving a qualifying benefit between June 11 and July 7, 2025.
4. Can I receive the payment if I only get Child or Working Tax Credits?
Ans. Yes, as long as your claim was active during the qualifying period.
5. Where can I get more updates?
Ans. Visit the official UK government portal: https://www.gov.uk
Conclusion: Temporary Relief, Long-Term Issues
The £450 Cost of Living Payment offers immediate relief to millions of financially vulnerable households across the UK. While it may ease pressure temporarily, experts agree that it does not solve the underlying economic problems such as low wages, insufficient housing supply, and energy market instability.
Nonetheless, for eligible recipients, this grant provides a welcome financial cushion at a time when many are struggling to stay afloat.
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