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To combat the continuing effects of inflation and rising living costs, the UK government has introduced a new £450 Cost of Living Payment, to be issued in May 2025.
Administered by the Department for Work and Pensions (DWP) and HMRC, this one-off support measure is set to benefit millions of low-income households struggling with high bills, food inflation, and housing costs.
If you’re wondering who qualifies, when you’ll get it, and what to expect, this guide provides all the up-to-date information.
What Is the £450 Cost of Living Payment?
The £450 payment is a non-taxable, one-time financial support introduced under the government’s 2025 Cost of Living Support Package.
It replaces the previous tiered approach (e.g., £301, £300, £299 payments), consolidating support into one straightforward payment.
This grant aims to ease the burden of soaring expenses, including:
- Energy bills, still averaging £1,800 per year
- Food inflation, remaining above 8%
- Rent increases, at historic highs across the UK
Who Is Eligible for the £450 Payment?
To qualify for this payment, you must have been receiving one of the following means-tested benefits during the qualifying period from 11 March to 7 April 2025:
| Eligible Benefits | Administered By |
|---|---|
| Universal Credit (excluding zero awards) | DWP |
| Income-based Jobseeker’s Allowance (JSA) | DWP |
| Income-related Employment and Support Allowance (ESA) | DWP |
| Income Support | DWP |
| Pension Credit | DWP |
| Working Tax Credit and Child Tax Credit | HMRC |
Note: Those on new-style JSA/ESA or contributory-only benefits are not eligible.
When Will You Be Paid?
The payment schedule for the £450 grant is split based on the issuing agency:
| Payment Group | Expected Date Range |
|---|---|
| DWP-administered benefits | 13 May – 24 May 2025 |
| HMRC (Tax Credits recipients) | 20 May – 31 May 2025 |
- No application is needed.
- Payments will be automatic to the bank account where you receive your benefits.
How Will You Receive the Payment?
The £450 payment will appear on your bank statement with a reference such as:
- DWP COLP May 2025
- HMRC COLP May 2025
This amount is not taxable, will not affect other benefits, and is yours to use freely.
Why Is the Payment Being Made?
The DWP has cited continued financial pressure as the key reason for this intervention. The payment is intended to provide:
- Temporary relief from living cost hikes
- Assistance to those most economically vulnerable
- Support to working families, pensioners, and disabled individuals
While not a long-term solution, it serves as a buffer against inflation and housing strain.
Who Will Benefit Most?
Those expected to benefit significantly from the payment include:
- Single-parent households
- Elderly pensioners living alone
- Disabled individuals with low or fixed incomes
- Low-income families in rented accommodation
Beware of Scams
With any large-scale payment, scams are on the rise. Stay safe by:
- Ignoring texts or emails asking for bank info
- Not clicking on suspicious links
- Always checking GOV.UK for official updates
DWP will never ask for personal details for this payment.
What If You Don’t Get Paid?
If you think you’re eligible but haven’t received your payment by 31 May 2025, you should:
- Wait until 1 June, as payments may still be processing.
- Check your benefits account and ensure your details are current.
- Contact DWP or HMRC (depending on your benefit) for assistance.
The £450 Cost of Living Payment in May 2025 is a timely and welcome relief for millions. It offers real, short-term help amid ongoing economic challenges.
However, with costs still climbing and many households on the brink, the need for long-term policy reforms in housing, energy, and welfare remains urgent.
Until then, this payment can help cover the essentials—and give breathing space to those who need it most.
FAQs
Do I need to apply for the £450 Cost of Living Payment?
No. The payment is made automatically if you meet eligibility criteria during the qualifying period.
Will the payment affect my other benefits or taxes?
No. It is non-taxable, won’t impact existing benefits, and won’t count toward your income.
What should I do if I don’t get the payment?
Wait until June 1, then contact DWP or HMRC. Also, verify that your benefit claim was active during 11 March to 7 April 2025.