Millions of people across the UK are set to receive a £450 cost of living payment in August 2025 as part of the government’s ongoing support to help with rising household expenses. With inflation and utility bills still higher than pre-2020 levels, this one-off payment aims to offer timely relief. If you’re wondering whether you’re eligible and when the money will arrive in your account, here’s everything you need to know.
Who will receive the £450 payment?
The government has confirmed that the £450 payment will be made to eligible individuals who are already receiving means-tested benefits. These include:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
If you are on any of these benefits during the qualifying period, you should automatically be considered for the payment. There’s no need to apply separately.
What is the qualifying period?
The Department for Work and Pensions (DWP) has announced that to be eligible for the £450 cost of living payment, you must have received one of the qualifying benefits between 8 June 2025 and 7 July 2025.
If your benefit payment was delayed or backdated for this period, you may still be eligible, but it could take longer to process your payment.
When will payments be made?
DWP has confirmed that the £450 payments will start being issued from Monday, 19 August 2025 and are expected to continue through to Friday, 30 August 2025.
Payments will be made in batches, so not everyone will receive the money on the same day. It is advised to wait until 3 September 2025 before contacting DWP if you believe you’re eligible but haven’t received the payment.
How will the money be paid?
The £450 payment will be made directly into the same bank account where your benefit is usually deposited. The transaction will appear on your statement with a reference like “DWP COL” or “HMRC COL” depending on the type of benefit you receive.
You do not need to apply or do anything extra — it will be processed automatically by DWP or HMRC.
Are tax credits recipients included?
Yes, if you’re only receiving Working Tax Credit or Child Tax Credit and not receiving other DWP benefits, you are still eligible for the £450 payment.
However, in this case, HMRC (not DWP) will handle your payment. These recipients might receive their payment slightly later, usually within the first week of September 2025.
Will the payment affect other benefits?
No, the £450 cost of living payment is not taxable and will not affect your existing benefits or entitlements. It is treated as a one-off support payment and will not be considered as income or savings when calculating other benefit claims or Universal Credit payments.
What if you don’t receive the payment?
If you believe you are eligible but don’t receive your payment by 3 September 2025, you should first:
- Check your bank account and benefit statement again
- Ensure you met the qualifying dates (8 June – 7 July 2025)
- Confirm that you are on one of the eligible benefits
If all is correct, then you should contact the DWP or HMRC directly, depending on who pays your benefit. You may be asked to provide proof of eligibility or supporting documents.
Scams to watch out for
As with previous cost of living payments, scammers may try to exploit this announcement. Be careful of:
- Texts or emails asking you to “apply” for the payment
- Messages with suspicious links
- Calls claiming to be from DWP asking for bank details
Remember: You do not need to apply for this payment. DWP or HMRC will never ask for personal or banking information via unsolicited messages. Always check official websites before taking any action.
Why is the government offering this payment?
The government introduced a series of cost of living payments starting in 2022 to ease the financial strain on households due to inflation, energy price hikes, and food costs. Though inflation has begun to fall in 2025, many low-income families are still struggling to meet daily expenses.
This £450 payment is part of a wider support package announced in the Spring Budget 2025, aiming to protect the most vulnerable groups from further financial hardship.
Will there be more cost of living payments in 2025?
While the government has not officially confirmed any additional cost of living payments beyond August, several reports suggest that a winter energy support scheme may be introduced later in 2025.
This could include fuel vouchers or direct support for those on Pension Credit or disability benefits. Further announcements are expected around October 2025, ahead of the winter months.
What if you’re newly eligible?
If you begin receiving a qualifying benefit after 7 July 2025, unfortunately, you will not be eligible for the August payment. However, staying updated with DWP announcements is important, as new support payments may come in future months for newly eligible claimants.
Will people on PIP or DLA get this payment?
No, Personal Independence Payment (PIP) and Disability Living Allowance (DLA) recipients are not covered under this particular £450 cost of living payment unless they also receive a means-tested benefit like Universal Credit or Income Support.
Separate disability support payments were made earlier in the year, and another may be issued later depending on government plans.
How to get help if you’re struggling financially
If you’re still facing financial difficulties even after receiving the £450 payment, here are some additional support options:
- Contact your local council for help with housing, food vouchers, or emergency grants
- Citizens Advice UK can guide you on budgeting and benefits
- Energy support schemes like the Warm Home Discount may be available
- Food banks and charities often provide short-term relief
You can also check gov.uk for the latest benefits calculators and resources available in your region.
Final thoughts
The £450 cost of living payment in August 2025 is a crucial lifeline for many UK households still feeling the effects of economic pressures. If you’re eligible, the payment will be sent automatically and will not affect your other benefits. While this support may not solve every problem, it is designed to provide timely relief where it is needed most.
Stay informed, avoid scams, and keep track of further government announcements that may offer more help in the months ahead.