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The UK government is stepping in once again to support low-income households as the cost of living continues to rise in 2025. A new £450 cost of living payment is set to arrive in October 2025, offering vital relief for millions struggling with bills, food prices, and rent.
If you’re wondering who qualifies, when you’ll be paid, and how to know if you’re eligible, this guide breaks everything down clearly and simply.
🔍 What Is the £450 Cost of Living Payment?
The £450 cost of living payment is a one-off financial boost announced to help people manage the ongoing pressure of high inflation and increased household costs.
It’s part of the UK government’s wider cost-of-living support package, targeting those receiving income-related benefits. The goal is simple — to ease financial strain for vulnerable groups as winter approaches.
Unlike loans or grants, this payment is tax-free and does not affect other benefits. You don’t need to apply — it will be paid automatically if you’re eligible.
💰 Who Is Eligible for the Payment?
To qualify for the £450 cost of living payment in October 2025, you must be receiving at least one of the following benefits during the government’s official eligibility period (usually a few weeks before the payment is made):
- Universal Credit
- Income Support
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
If you receive both tax credits and another qualifying DWP benefit, you’ll get the payment only once, not twice.
It’s important to note that you must have been entitled to receive the qualifying benefit during the eligibility period — even if you were paid a small amount (for example, due to deductions).
📅 When Will the £450 Be Paid?
The Department for Work and Pensions (DWP) and HMRC are expected to begin issuing payments in mid-October 2025, continuing over a few weeks.
Payments will be made automatically, meaning there’s no need to apply or contact your benefit office.
- DWP recipients (e.g., Universal Credit, Income Support, ESA, JSA, Pension Credit) will receive payments first.
- HMRC recipients (e.g., those on Working Tax Credit or Child Tax Credit only) will receive their payments a few days later.
If you haven’t received your payment by early November 2025, it’s best to contact the DWP or HMRC directly.
🏦 How Will You Receive the Payment?
You’ll get the payment directly into your bank, building society, or credit union account — the same one where your usual benefits are paid.
Payments will appear on your statement with one of the following references:
- “DWP COLP” – if paid by the Department for Work and Pensions
- “HMRC COLP” – if paid by HMRC
There’s no separate form to fill out or claim to submit. If you qualify, it will be processed automatically.
⚠️ What If You Don’t Receive the Payment?
If you were expecting the payment but haven’t received it two weeks after the final announced payment date, here’s what you should do:
- Double-check your benefit status – confirm that your benefit claim was active during the eligibility window.
- Review your bank statement – look for “DWP COLP” or “HMRC COLP.”
- Contact DWP or HMRC – use the official GOV.UK contact pages for assistance.
Avoid clicking on links or responding to messages that claim to help you “apply” for the cost-of-living payment — the government will never ask for personal information or payment details via text, email, or phone.
💡 Additional Support Available
If you don’t qualify for the £450 payment, you might still be eligible for other support options in 2025, including:
- Local Council Hardship Funds – check with your local authority for emergency grants or energy support.
- Energy Bill Support – certain suppliers and councils still offer winter energy assistance.
- Charitable Grants – organisations like Turn2Us, StepChange, and British Gas Energy Trust can provide extra help.
- Pensioner Support – those above State Pension age may qualify for the Winter Fuel Payment or Pensioner Cost of Living Payment.
It’s also worth visiting GOV.UK for a complete list of current financial support options.
🗓️ Key Takeaways
| Topic | Details |
|---|---|
| Payment Amount | £450 (one-off, tax-free) |
| Payment Date | Mid to late October 2025 |
| Eligible Benefits | Universal Credit, Pension Credit, Income-based JSA, ESA, Tax Credits, etc. |
| How Paid | Automatically via bank account |
| No Application Needed | Yes – automatic payment |
🏁 Final Thoughts
The £450 cost of living payment in October 2025 is a welcome relief for millions of UK households still feeling the squeeze of inflation.
If you’re receiving a qualifying benefit, you don’t need to do anything — just keep an eye on your account in October for the “COLP” reference.
And if you don’t qualify this time, explore other financial help options from your local council, charities, or the government’s online support hub.
Every little bit of support helps — and staying informed ensures you never miss out.
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