The way inflation has gained momentum in the United Kingdom in the last few years has made the financial condition of the common citizens unstable. Energy prices, the cost of food items, and necessities like rent have now become a big challenge for the middle- and low-income groups. In such a situation, this move of the government—giving a Cost of Living Payment of £450 in June 2025—is like a lifesaver for those who are struggling to make ends meet or find themselves in loss by the end of every month. This one-time payment can provide immediate relief to millions of people and will also provide them financial stability for some time.
What is this £450 payment scheme?
This £450 payment announced by the government is not like any regular salary or benefit, but it should be seen as a special relief payment. It will be delivered by the Department for Work and Pensions (DWP) on behalf of the government to those who are already availing certain special social benefits. This scheme is part of the government’s Cost of Living Payment Series, under which payments like £301, £299 and £150 have already been given.
The objective of this scheme is very clear—to provide relief to the common people from rising inflation. This amount is not a loan, nor does it have to be repaid. It is a one-time and tax-free payment that will not affect your existing benefits in any way.
When and how will the payment be made?
The government has already made it clear that this payment will be sent to the accounts of eligible beneficiaries from mid-June 2025 to the end of the month. The payment process will be automatic; that is, you will not need to fill out any form or apply once the eligibility is confirmed. If you are already availing Universal Credit, Pension Credit or other prescribed benefits from the government, then this amount will be automatically transferred to your registered bank account.
When the amount is sent, this transaction will appear in your bank statement with a name like “DWP COL” or “HMRC COL” so that you can easily identify that it is the Cost of Living Payment.
Who will get this payment? Know the eligibility conditions.
If you are wondering whether you are eligible for this scheme, then first of all, it is important to know that this payment is for beneficiaries associated with means-tested benefits, i.e., income-based benefits. If you are receiving any of the benefits given below in June 2025, then you will be eligible for this £450 Cost of Living Payment:
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
It is worth noting that there is no age limit for this scheme. Whether you’re young, elderly or a family member—if your financial situation is in line with the set benefits, you’re eligible for this payment.
Who won’t get this payment?
People who are only receiving New Style JSA or New Style ESA and are not eligible for any other means-tested benefit will not receive this £450 payment. Also, if your Universal Credit claim has been suspended by the DWP or you have recently stopped, you will not be eligible for this payment.
So, it’s important to keep your benefits status updated regularly and visit the DWP portal to make sure your claim is active.
What will the payment process be like?
As mentioned earlier, this amount will be credited directly to the same bank account as your other benefits. There’s no process involved. You don’t have to fill in any separate forms or log in to any website. If your eligibility is correct and your claim status is active, the DWP will automatically transfer this amount to your bank account.
This payment will be made using a simple, transparent and reliable system to avoid any inconvenience to beneficiaries.
Will this amount affect your other benefits?
The answer to this question is a relief to most people—no, this amount will not affect your existing benefits at all. It is tax-free, non-refundable and a completely separate relief. It will not affect your Universal Credit, Pension Credit, Housing Benefit or any other support scheme.
This means you can use this amount for whatever you wish, whether it’s to pay rent, pay bills or support your children.
What if you don’t get paid?
If this amount does not appear in your account by 30 June 2025, and you think you are eligible, first take the following steps:
- Check your bank statement—see if there is a “DWP COL” or “HMRC COL” transaction.
- Log in to your Universal Credit or other benefit account and check your claim status.
- If the situation is not clear, call or contact the DWP helpline.
- If you may be eligible for Pension Credit but have not yet applied, you can apply before June 2025 and join this scheme.
Why is this relief amount needed?
In the last few years, the COVID-19 pandemic, energy crisis, and global economic instability have had a profound impact on the UK’s economic situation. In such a situation, the cost of not only food items but also electricity, gas, transport and health services has increased manifold. Amidst all this, the life of the common man has been affected and many families have become unable to meet even the basic needs of life.
This £450 payment has been started by the government as a protective shield so that needy families can breathe a little easier in these difficult times.
How is this payment linked to other schemes?
This scheme is completely a part of the Cost of Living Payment Series, under which the government has already made several payments of £301, £299 and £150. The purpose of all these is the same—to provide necessary financial assistance to every citizen of the country who is finding it difficult to live without it.
Seen in this way, this initiative of the government is not just a relief scheme but a discharge of a moral responsibility.
Conclusion: This relief is not just financial but also mental.
In this era of inflation, this £450 Cost of Living Payment given by the government is an important relief for millions of families who are worried about rising prices every day. It is not just about money—it is about the trust that should be established between the government and the general public. When the government comes forward to help, it is not only financial assistance but also gives mental peace to the citizens.
So if you are taking advantage of Universal Credit, Pension Credit or other eligible benefits, then rest assured—this amount of £450 is for you. Just keep your DWP records updated and bank account active, and then this relief will definitely reach your pocket in June 2025.
FAQs
Q. Who is eligible for the £450 Cost of Living Payment in June 2025?
A. Anyone receiving means-tested benefits such as Universal Credit, Pension Credit, Income Support, income-based JSA or ESA, Working Tax Credit, or Child Tax Credit during the qualifying week in June 2025.
Q. Do I need to apply to receive the £450 payment?
A. No. If you are eligible and receiving qualifying benefits, the payment will be made automatically to your registered bank account.
Q. When will I receive the £450 payment?
A. The payment will be made between mid to late June 2025 directly into eligible beneficiaries’ bank accounts.
Q. Will the £450 payment affect my other benefits?
A. No. The £450 payment is tax-free, does not count as income, and will not affect your existing benefits.
Q. What should I do if I don’t receive the payment by 30 June 2025?
A. Check your bank statement for “DWP COL” or “HMRC COL,” log in to your benefits portal, and contact DWP customer service if the payment is missing.