In response to the continuing cost of living crisis, the UK Government has confirmed a £450 Cost of Living Payment for eligible residents in May 2025.
Rolled out by the Department for Work and Pensions (DWP) and HMRC, this one-time financial relief is aimed at easing the burden of rising costs for low-income families, pensioners, and benefit recipients.
This article explains who qualifies, when it’s paid, and what to do if you don’t receive it.
What Is the £450 Cost of Living Payment?
The £450 payment is a non-taxable, one-off grant provided to help cover essential living expenses such as food, housing, energy, and transport. Unlike recurring benefits like Universal Credit, this is a separate lump sum and does not affect other benefits.
Key Details at a Glance
| Aspect | Details |
|---|---|
| Payment Amount | £450 (per eligible household/individual) |
| Payment Window | May 6 – May 24, 2025 |
| Application Required? | No – Paid automatically |
| Administered By | DWP & HMRC |
| Payment Marked As | “DWP COLP” or “HMRC COLP” on bank statements |
Who Is Eligible for the £450 DWP Payment?
To qualify, recipients must have been receiving one of the means-tested benefits during the eligibility window from April 8 to May 5, 2025.
Eligible Benefits Include:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit (Guarantee Credit)
- Housing Benefit (in specific qualifying combinations)
Not Eligible If You Receive Only:
- Contribution-based JSA
- New Style ESA
- New State Pension or PIP without other qualifying benefits
Payment Schedule and Method
The DWP May 2025 payment is being issued in two waves based on the agency and benefit type.
| Paid By | Eligible Benefits | Payment Window | Payment Method |
|---|---|---|---|
| DWP | Universal Credit, ESA, JSA, Income Support, Pension Credit | May 6 – May 17, 2025 | Direct Bank Transfer |
| HMRC | Working/Child Tax Credit | May 14 – May 21, 2025 | Separate HMRC Bank Payment |
If you receive both DWP and HMRC benefits, you’ll only get one payment, with DWP taking priority.
How This Payment Supports Households
The £450 cost of living payment is designed to ease financial pressure by covering:
- Increased food prices driven by inflation
- Heating and utility bills for families and elderly
- School expenses like uniforms and transportation
- Rent or mortgage shortfalls not covered by other benefits
This support aligns with the government’s broader £3.9 billion relief fund, helping millions bridge the gap during financially tight months.
What to Do If You Don’t Receive the Payment
If you believe you’re eligible but don’t see the payment by May 25, 2025, follow these steps:
- Verify Eligibility
Check if you were receiving a qualifying benefit between April 8 and May 5, 2025. - Confirm Bank Details
Ensure your DWP/HMRC profile has your updated banking information. - Report the Missing Payment
- Use the “Report a missing Cost of Living Payment” form on GOV.UK
- Or call DWP at 0800 169 0310 for assistance
Note: Claims can be submitted only after May 25, 2025.
Future DWP Payments in 2025
The £450 May payment is just one part of the government’s phased approach to financial support. Additional payments scheduled for later in the year include:
- £299 Autumn Cost of Living Payment (October 2025)
- Winter Fuel Payment Boost for pensioners (November–December 2025)
- Disability Cost of Living Payments for PIP/DLA recipients (date TBC)
The £450 Cost of Living Payment in May 2025 offers crucial relief for millions of struggling UK residents. With automatic disbursement, clear eligibility rules, and additional support lined up for later in the year, it’s vital to stay informed and check your benefit status.
Whether it’s for heating, food, or transport, this payment helps bridge the gap during tough economic times—making it more than just a one-off grant; it’s a lifeline for vulnerable households.
FAQs
Who qualifies for the £450 cost of living payment in May 2025?
You must have received a qualifying means-tested benefit between April 8 and May 5, 2025.
Do I need to apply for the £450 payment?
No. The payment is automatic for eligible recipients and appears as “DWP COLP” or “HMRC COLP” on your bank statement.
What if I don’t receive the payment by May 25, 2025?
Report it via the official GOV.UK form or call DWP for assistance after May 25.