New £450 Cost of Living Payment Announced by DWP: Check If You Qualify in May 2025

In view of rising inflation and DWP rising cost of living, the UK government has come up with another relief scheme – a new Cost of Living Payment of £450. This payment is especially for those families and people who are receiving Universal Credit, Pension Credit or other low-income benefits. The aim of the government is to provide some relief to the weaker sections of the country, so that they can manage daily expenses like electricity bills, food items and rent etc. without getting into debt.

Now we will tell you about this new scheme in easy and detailed – who is eligible, when will the payment be received, and how to avail this money.

What is this £450 Cost of Living Payment?

This is a one-time government assistance, which the Department for Work and Pensions (DWP) has announced to start giving from May 2025. Its main objective is to make needy families financially strong, especially at a time when the price of every essential thing is increasing.

Key details about the payment

Detail	Information
Total Payment Amount	£450 per eligible person
Payment Start Date	From 6 May 2025
Who is Eligible	Recipients of Universal Credit, Pension Credit, ESA, Income Support, JSA
Need to Apply	No, payment will be automatic
How Payment Will Be Made	Direct deposit into bank account

Who is eligible?

The Government has clarified that people receiving certain benefits will be eligible for this payment. If you’re receiving any of these benefits, you may be eligible for the scheme:

• Universal Credit
• Pension Credit
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Working Tax Credit or Child Tax Credit in some cases

Note: If someone is only receiving “New Style ESA” or “New Style JSA” and no other eligible benefits, they will not be eligible for this payment.

Qualifying Period

The DWP will soon announce a “qualifying week” — a week in which you will be eligible to receive a payment if you have received the above benefits. So you should keep checking your recent benefit statement.

How and when will you get paid?

• The money will be deposited straight into the same bank account you receive your other benefits in.
• You won’t need to make a new application.
• The DWP will start sending this payment gradually from May 2025, and in some cases payments may arrive as late as June.
• When the payment arrives, your National Insurance Number will appear in your bank account along with “DWP COLP”.

What if you don’t get a payment?

If you think you are eligible but you haven’t received the money by 30 June 2025, you should contact the DWP immediately. You can get in touch through your existing benefit service.

Why is this payment important?

Inflation in the UK has remained above the government’s target level for a long time. People’s incomes are not rising as fast as expenses. For example:

• Electricity and gas bills have become very expensive.
• The price of basic items such as milk, bread, vegetables is rising every day.
• Fare and travel expenses are also becoming out of reach for ordinary people.

In such a situation, this amount of £450 gives some relief to people, so that they can meet their essential expenses. If someone wants, someone can buy food items with this money, while someone can pay electricity bill with it. The government has called it “flexible support” – that is, people can use it according to their needs.

What should you do before this payment?

Even though there is no need to apply for this payment, you should still take care of some things so that the money is received on time and without any hassle:

• Check your bank account information – is that information correct in the DWP’s records?
• Keep your National Insurance Number safe.
• Keep an eye on your bank statements between May and June 2025, especially on payments coming in the name of “DWP COLP”.
• If you have recently moved house, or your bank account has changed, then inform the DWP immediately.

Other government schemes also continue

This £450 payment is a part of the government’s larger plan. Apart from this, the government is taking many other steps so that people can get relief from inflation:

Expansion of Household Support Fund – Through this scheme, local councils help needy families with food, bill payments and everyday things.

• Energy Price Guarantee – Certain categories are being given discounts in electricity bills.
• Fuel Duty Freeze – Tax on petrol and diesel has not been increased.
• Increase Local Housing Allowance – This allowance has been increased to provide rent relief from April 2025.

Conclusion

This new Cost of Living Payment of £450 from the UK government is a very important and timely help, which will provide some relief to millions of people. If you are receiving Universal Credit or other related benefits, you will automatically receive this payment – just make sure your personal information is correct in the DWP’s records.

Like every year, this time too the government’s aim is that no person should be left behind in times of need. Therefore, if you or someone in your family can take advantage of this scheme, then update all the information in time.
If you want, you can also get complete information by visiting the government’s official website (www.gov.uk/dwp).

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