With ongoing financial pressure from high inflation, soaring energy bills, and everyday essentials still costing more, the UK Government has confirmed a £450 Cost of Living Payment for eligible residents in July 2025.
This one-time payment will be automatically disbursed to help households struggling to keep up with rising expenses.
Here’s everything you need to know about who qualifies, when you’ll get paid, and how to ensure you don’t miss out.
What Is the £450 Cost of Living Payment?
The £450 Cost of Living Payment is a government-approved one-off financial support measure to assist low-income individuals and families during a period of persistent economic stress.
Following similar payments in previous years, this boost targets those on means-tested benefits, including Universal Credit and Pension Credit.
The payment is designed to mitigate rising costs on essential items such as food, rent, and energy—without requiring any application or manual process.
Key Details of the £450 July 2025 Payment
| Details | Information |
|---|---|
| Payment Amount | £450 |
| Disbursement Start Date | July 19, 2025 |
| Final Payment Date | July 31, 2025 |
| Eligibility Criteria | Must be receiving qualifying income-based benefits |
| Application Required | No – automatic payment |
| How It’s Paid | Direct deposit to benefit-linked bank account |
| Payment Reference Code | “DWP COLP” + National Insurance number |
Why Is This Payment Being Issued?
Despite a slowdown in overall inflation, food prices, utility bills, and rent remain unaffordably high for many families. Energy support programs have scaled down, but expenses haven’t followed suit.
The £450 boost is part of a targeted relief strategy to reduce short-term hardship and help beneficiaries avoid falling into debt, arrears, or reliance on high-interest credit. By disbursing the payment directly to those who qualify, the government aims to provide immediate and frictionless support.
Who Is Eligible for the £450 Cost of Living Payment?
To receive the payment, individuals must be entitled to one or more income-related benefits during a yet-to-be-confirmed qualifying week in 2025. Eligible benefits include:
- Universal Credit (UC)
- Pension Credit
- Income Support
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Working Tax Credit or Child Tax Credit (with additional criteria)
Important: People receiving only ‘New Style’ ESA or JSA (not income-based) will not qualify.
The payment is automatic—you do not need to apply. Eligibility will be determined based on benefit status during the qualifying period.
When Will You Receive the Payment?
Payments will be deposited between July 19 and July 31, 2025.
There will be no advance notification. Instead, beneficiaries should monitor their bank accounts for a transaction labeled:
“DWP COLP” followed by their National Insurance number
If the payment hasn’t arrived by July 31, and you believe you qualify, contact the DWP via their standard support channels—online portal, helpline, or local Jobcentre.
How to Prepare Before the Payment Arrives
Even though the payment is automatic, you should take a few proactive steps to ensure smooth processing:
- Check your benefit-linked bank account details are correct
- Update your contact information with DWP if it has changed
- Review your benefits status if your circumstances recently changed
- Monitor your bank account starting from July 19 for the payment code
By confirming your benefit records are up to date, you reduce the risk of delays or missed payments.
Why This Support Matters
The government’s decision to issue the £450 Cost of Living Payment reflects several key economic pressures affecting UK residents:
- Food inflation remains disproportionately high
- Energy bills have dropped from their peak but remain burdensome
- Housing costs continue to rise, especially in urban centers
- Transport fares are increasing faster than average wage growth
For millions, even a one-off payment like this can bridge the gap between wages and essential living costs.
How Will the Payment Be Tracked?
Because the DWP will not send a formal letter or message in advance, the only way to track your payment is via the bank transaction reference:
“DWP COLP” + National Insurance number
This is your confirmation of receipt. If you haven’t seen the payment by end of July, and you believe you’re eligible, reach out to the DWP for assistance.
The £450 Cost of Living Payment in July 2025 is a welcome relief for millions of UK households struggling with high expenses. If you’re receiving means-tested benefits, check your bank account between July 19 and 31 for the “DWP COLP” payment reference.
No application is required—but staying informed, reviewing your details, and watching your account activity can ensure you don’t miss out on this vital support.
FAQs
Do I need to apply for the £450 Cost of Living Payment?
No. The payment will be automatically deposited to eligible recipients receiving certain income-based benefits.
What if I don’t receive the payment by July 31?
If you’re eligible and haven’t received the money by July 31, contact the DWP via the usual support channels.
Will this payment affect my benefits or taxes?
No, the £450 payment is tax-free, and will not affect your existing benefit entitlements.