The UK government has announced a new £450 Cost of Living Support payment set to arrive between 15 and 25 July 2025.
This one-off, tax-free support will help over a million low-income households manage essential expenses such as food, rent, and energy bills amid continuing inflation and economic pressure.
This payment is designed to cushion the financial impact for vulnerable groups, especially those on certain means-tested benefits.
With rising living costs and stagnant income growth, the £450 grant serves as a crucial safety net in 2025.
Who Will Receive the £450 Support Payment?
The Department for Work and Pensions (DWP) and HMRC will deliver this automatic payment to eligible claimants.
No application is needed, but eligibility is based on benefit receipt as of a specific qualifying date—likely in April or May 2025.
Eligible Benefits 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 receive any of these, and your claim was valid on the qualifying date, the payment will go directly into your bank account.
Payment Details
| Category | Details |
|---|---|
| Payment Amount | £450 (one-time) |
| Payment Window | 15 to 25 July 2025 |
| Application Required? | No – automatic if eligible |
| Qualifying Benefits | Universal Credit, Pension Credit, etc. |
| Qualifying Date | Likely April or May 2025 |
| Taxable? | No |
| Effect on Other Benefits? | None – will not impact existing support |
| Payment Method | Direct bank deposit from DWP/HMRC |
Why Is This Payment Being Issued?
The £450 Cost of Living Support comes at a time when inflation in 2025 is affecting household essentials across the board. Energy bills, groceries, and housing costs have surged, and vulnerable individuals—particularly pensioners and low-income families—are under immense strain.
This support aims to:
- Provide immediate financial relief
- Help with daily essentials
- Prevent further financial hardship
How to Ensure You Receive the Payment
- Check your benefit status through the DWP or HMRC portals.
- Confirm your eligibility date to ensure your claim was active at the cut-off.
- No need to apply – payments are processed automatically for qualifying claimants.
Past Cost of Living Payments
This initiative follows a series of past government relief measures:
| Year | Amount | Details |
|---|---|---|
| 2022-23 | £650 | Paid in two instalments |
| 2023 | £900 | Split into three payments |
| 2024 | £299 | One-time payment |
| 2025 | £450 | Scheduled between 15–25 July |
These payments have helped households cope with ongoing economic challenges. The 2025 installment reflects the continued need for targeted support.
What to Do If You Don’t Receive the £450
If you haven’t received your £450 payment by late July 2025, take the following steps:
- Log in to the DWP or HMRC portal to confirm your benefit status
- Check that your claim was active on the qualifying date
- Call the DWP or HMRC for support or visit Citizens Advice
Act quickly to resolve any discrepancies and avoid missing out on this important support.
The £450 Cost of Living Support arriving in July 2025 is a lifeline for many UK residents struggling with rising prices and stagnant wages.
With no application required, those on qualifying benefits will see the funds directly deposited, offering vital help during uncertain financial times.
If you believe you qualify, double-check your benefit status and stay alert for payment notifications. This support could make a meaningful difference in managing your essential living costs this summer.
FAQs
When will the £450 cost of living payment arrive?
Between 15 and 25 July 2025, directly deposited into eligible claimants’ bank accounts.
Do I need to apply for the payment?
No, if you’re eligible based on your benefit status, the payment will be automatically issued.
Will this payment affect my other benefits or tax status?
No, the payment is non-taxable and will not affect any other benefits you receive.