With rising inflation continuing to push up food, energy, and housing costs, the UK government has announced a one-time £450 Cost of Living Payment in August 2025.
The payment, run by the Department for Work and Pensions (DWP) in partnership with HM Revenue & Customs (HMRC), aims to provide immediate relief to low-income households, pensioners, and those receiving certain benefits.
Why This Payment Is Needed
The cost of everyday essentials has been climbing steadily in the UK, making it difficult for low-income families, elderly pensioners, and people on social assistance to make ends meet. The £450 payment is designed to ease this pressure and provide targeted support to those most in need.
This is a one-off payment and will not require any application. Eligible individuals will receive it automatically into their bank accounts.
Who Is Eligible?
To receive the £450 payment, you must already be receiving, or be eligible for, one of the following benefits:
- Universal Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
If you receive benefits from both DWP and HMRC, the payment will be issued only once from one agency.
Payment Dates
| Benefit Type | Payment Date |
|---|---|
| Universal Credit | 12–15 August 2025 |
| Income Support / ESA / JSA | 16–20 August 2025 |
| Working and Child Tax Credit | 22–26 August 2025 |
| Pension Credit | 27–30 August 2025 |
Payments will appear in your bank statement as “DWP COLP” or “HMRC COLP,” depending on which agency issues it.
Key Points to Remember
- No need to apply — payments are automatic
- Completely tax-free and will not affect other benefits
- Update bank details with DWP or HMRC to avoid delays
- Paid once, even if you qualify through multiple benefits
How This Helps
The £450 can help with:
- Covering higher energy and utility bills
- Paying rent or mortgage costs
- Buying food and household essentials
- Supporting children’s school expenses ahead of term start
- Reducing reliance on credit or savings
For many families, especially during the back-to-school season, this payment will provide timely and much-needed support.
Government Support at the Right Time
This Cost of Living Payment shows the government’s commitment to helping those most affected by inflation. By targeting existing benefit recipients, it ensures that money goes directly to the people who need it most without extra forms or delays.
Anyone who qualifies should keep their banking details updated and watch for official messages from DWP or HMRC to make sure their payment is processed smoothly.
FAQs
How much is the UK Cost of Living Payment in August 2025?
It is a one-off £450 payment.
Do I need to apply for the £450 payment?
No, it will be paid automatically if you are eligible.
Will the payment affect my other benefits?
No, it is tax-free and will not affect existing benefits.
When will Universal Credit recipients be paid?
Between 12 and 15 August 2025.
What will the payment show as on my bank statement?
It will appear as ‘DWP COLP’ or ‘HMRC COLP’.
