£450 Cost of Living Payment Coming In June 2025 – Check If You Qualify Now

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.

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.

The £450 Cost of Living Payment in June 2025 offers vital support to low-income households facing financial challenges. Ensure you meet the eligibility criteria and remain vigilant against scams.

FAQs

Can I receive the £450 payment if I’m on New Style ESA or JSA?

No, only income-based ESA or JSA qualify. New Style and contributory versions are not means-tested and do not meet the eligibility criteria.

Will this payment affect my other benefits or tax credits?

No, the £450 payment is non-taxable and does not count as income for benefit calculations. It will not affect your existing benefits or tax credits.

Do I need to apply for the £450 Cost of Living Payment?

No, the payment is automatic. If you’re eligible, it will be paid into your bank account without the need for an application.