In today’s life, the price of everything is increasing – be it ration, rent or electricity-water bill. The burden of inflation on the pockets of common people is increasing day by day. Especially for those who are already dependent on any help or benefit from the government. To give relief from this inflation, the UK government is taking an important step in June 2025 – £450 Cost of Living Payment.
If you or your family members are taking advantage of some special government benefits or schemes, then this lump sum amount can be very helpful for you.
Why is this £450 Cost of Living Payment being given?
Inflation in Britain has made the life of common people difficult. Essential expenses such as gas, electricity, food and rent have increased more than ever before. The government has provided financial assistance several times before, but the pace of rising inflation has been so fast that the earlier measures now seem insufficient.
For this reason, the government decided to once again provide direct cash assistance, so that people can better meet their daily needs. This amount of £450 is for those who have a low income or who are already part of a benefit scheme.
This money will especially help in these things:
- Paying electricity and gas bills at home
- Fulfilling needs such as children’s school fees, uniforms or tiffins
- Funding everyday food items
- Paying council tax or rent
Who are eligible for this payment?
If you were receiving money from any of the following government benefit schemes around June 2025, you will receive the £450 Cost of Living Payment automatically:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
You don’t need to fill out any new forms. The government will check and send the money into the same account your benefit amount is credited to.
When will the money arrive?
The government has decided that the £450 payment will start going out in June 2025. Some people could get it as early as July, and those with a Pension Credit case could get it by the end of August.
This means that if you’re eligible, you could get the money in your account anytime between June and August 2025.
How will the money arrive?
You’ll receive the money in the same bank account as your government benefit money. It may appear on bank statements as “DWP COL” (Department for Work and Pensions Cost of Living) or “HMRC COL” (Her Majesty’s Revenue and Customs Cost of Living).
If your account has recently changed, or there have been changes to your claim, the money may be delayed.
What to do if you haven’t received the money by July?
If you still haven’t received the money by the end of July 2025, here are the steps you should take:
- Check if you were part of an eligible benefit scheme when the qualifying period was in place.
- Check your bank account details—the account hasn’t been closed or the details have changed.
- Contact the DWP (Department for Work and Pensions) or HMRC.
- Keep your National Insurance number, details of benefit scheme and ID ready.
Based on this information, the department will review your file and resolve the issue.
How much difference can £450 make?
Now you may think that £450 is not a very big amount. But when it is a time of inflation, and the weekly budget is tight, this amount can be a big relief.
Suppose:
- You can buy ration for the whole month with this money.
- Or you can pay electricity and gas bills for 1-2 months.
- Children’s uniforms or books can be purchased from this.
- Some people can adjust it in the rent.
This step of the government shows that it is understanding the needs of the general public and is taking timely steps.
What other help can be available apart from £450?
The government is not helping with just this one scheme. Apart from this, there are some schemes through which low income families can get relief:
- Winter Fuel Payment: This is given to the elderly in winter so that the expenses of running heaters etc. can be met.
- Cold Weather Payment: When the weather becomes very cold, extra money is given in some areas.
- Discretionary Housing Payment: If you are having trouble paying rent, you can get additional help from the local council.
- Free School Meals and Uniform Grant: Free food and uniform support for school-going children.
You can contact the Citizens Advice Bureau or local council to find out what other schemes are available to you.
At a glance – a summary of Cost of Living Payment
| Features | Details |
| Amount | £450 (one-time) |
| Who will get | the benefits mentioned above |
| When will you get it | Between June and August 2025 |
| Application required | No application required – will be given automatically |
| Purpose | To give relief from inflation |
Some frequently asked questions (FAQs)
Q1. Do I have to apply for this?
No, if you are already part of eligible benefit schemes, this money will be automatically credited to your account.
Q2. If I have recently started taking benefits, will I get it?
Only if you have started taking benefits during the qualifying period. Otherwise you’ll have to wait until the next payment.
Q3. Will this payment reduce my remaining benefits?
No, this is additional support and will not affect your regular benefits.
Q4. I only get Child Tax Credit, am I eligible?
If you took Child Tax Credit at the qualifying time you are eligible.
Q5. Is this the last Cost of Living Payment?
The Government has not said anything about future plans yet. But for now this payment is being made in light of the current economic situation.
One last thing
Millions of persons on low incomes or receiving government support will have their Cost of Living Payment of Swindon (Swindon, also affected) to the tune of pound 450 in June 2025. You do not need to do anything, in case of eligibility this money will be directly on your account.
This small support can make a great difference. And be alert, keep checking your bank account and get in touch with the DWP or HMRC should you hit any hitch. There are more schemes that can be initiated in the future so look out at announcements of the government.
Shreya Singh is a dedicated financial journalist known for her in-depth coverage of government programs and economic updates. She consistently delivers accurate information on U.S. topics such as Stimulus Checks, IRS announcements, and federal relief efforts. Shreya also reports on UK welfare programs, covering developments in Universal Credit, PIP, and DWP news. Her clarity and commitment to trustworthy reporting have earned her a loyal following among readers seeking insightful financial updates.