In Britain, the daily living expenses are increasing each day – from household electricity and gas bills to food prices and day-to-day needs; inflation has broken the back of the people. The government tries to alleviate this crisis anytime it can.
According to the announcement, a one-off payment of £450 will be directly credited to the bank accounts of qualified persons during July of 2025. Let us see in detail in this article who will be entitled to receive the payment, when it will be received, and what is its significance?
A scheme look up: Key facts
| Detail | Information |
|---|---|
| Payment Amount | £450 per eligible person |
| Start Date | From July 16, 2025 |
| Eligibility | Universal Credit, Pension Credit, ESA, JSA, Income Support |
| Application Required | No, automatic if eligible |
| Payment Method | Direct deposit to DWP-registered bank account |
| Payment Reference | “DWP COLP” + National Insurance Number |
| Deadline to Receive | By end of July 2025 |
| Official Website | gov.uk/dwp |
Purpose of the payment
This one-off support of £450 is tax-free and meant for those finding it difficult in the face of price hikes.
Basic items like milk, bread, vegetables, and fuel are still expensive. In addition, there is no significant relief in electricity and gas bills. In this situation, this payment will act as a ‘sensitive relief’.
Therefore, this support is part of a wider scheme of the Government that includes Energy Price Guarantee, Household Support Fund, and others.
Who is eligible?
This payment is available for you if you were receiving any of the following benefits any time up to a date to be announced by the Government:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
In exceptional cases, people in receipt of Working Tax Credit or Child Tax Credit may qualify, but this yet again depends upon a confirmation from the DWP.
Important: If you are only on ‘New Style’ ESA or JSA and your benefit is not income-based, you will not be eligible for this support.
When and how would you be paid?
You don’t have to apply for the payment. It would be made automatically if eligible, beginning on 16 July 2025.
The payment would be credited into the same bank account with which you receive all DWP benefits. It would show on your bank statement like this:
“DWP COLP” + National Insurance number
There will be no letter or any advance notice. You will have to get in touch with DWP if this amount does not reach you by the end of July.
Why is the government providing the payment now?
The inflation rate is still above the threshold rate set by the Bank of England. Costs of living such as energy expenses, rents, food, and transportation have shot overboard.
Reasons for giving this support:
- Inflation remains high
- Energy and utility costs are at an all-time high
- Food and transport prices are still embraced by inflation
- Global economic instability
The government wants this payment to help people with their rising expenses, debts or responsibilities like rent.
What do you have to do beforehand?
Even if this money comes automatically, one can do a few simple things to avoid any delays with their payment:
- Ensure that your DWP bank details are up to date.
- During July 2025, keep your eyes peeled for any bank transactions.
- Don’t forget to check “DWP COLP” to find your reference.
If your circumstances have changes (like address, bank account, or state of affairs), inform the DWP.
What scheme are these supports part of?
In addition to this Cost of Living Payment of £450, the Government set forth several other relief schemes in the 2024 Budget:
- Household Support Fund (through local councils)
- Energy Price Guarantee (for selected vulnerable groups)
- Fuel Duty freezes
- Revisions to Local Housing Allowance as of April 2025
In all aspects, these schemes aim at creating a strong social safety net to provide multi-faceted support for families impacted by inflation.
Is this help enough?
This help of £450 cannot solve all the problems but is an excellent temporary relief for those who are trying to juggle income versus expenses month by month.
With this money, you could:
- Pay electricity/gas bills
- Pay rent or a loan
- Meet basic needs such as food and medicine
Conclusion
This Cost of Living Payment of £450 is a ray of hope for millions of people who are struggling with ever-increasing inflation. There is no need to apply for it; it will come directly to your account based on eligibility. If you are receiving Universal Credit, Pension Credit or other eligible benefits, then this payment is for you. It is significant that you keep your details updated in time, and contact DWP in case of any confusion. This initiative of the government will help support those who are the most affected during this inflationary period.
FAQs
Q1.Who is eligible for the £450 Cost of Living Payment?
A. If you receive benefits like Universal Credit, Pension Credit, Income Support, or income-based ESA/JSA, you’re likely eligible. The DWP will confirm eligibility based on a qualifying week, which they will announce soon.
Q2. Do I need to apply to receive this payment?
A. No, there’s no need to apply. If you meet the criteria, the payment will be made automatically to your DWP-registered bank account.
Q3. When will I receive the £450 payment?
A. Payments will begin rolling out from July 16, 2025. Most eligible people should receive it by the end of July without any delays.
Q4. How will the payment appear on my bank statement?
A. It will show up as “DWP COLP” followed by your National Insurance number. This is the official marker for the cost of living payment.
Q5. What should I do if I don’t receive the payment by July-end?
A. If the payment hasn’t arrived by July 30, contact the DWP using your usual benefit support channel. Make sure your bank and benefit details are up to date beforehand.
