To provide additional support during the ongoing cost of living crisis, the UK government has introduced a £450 Cost of Living Payment in August 2025.
Rolled out by the Department for Work and Pensions (DWP), this one-time payment will help low-income families, pensioners, and benefit claimants tackle the continued rise in energy, food, and housing costs.
This financial relief initiative forms part of the government’s broader August cost of living support strategy, aiming to deliver timely assistance where it’s needed most.
Who Is Eligible for the £450 DWP Payment in August 2025?
The payment is specifically targeted at means-tested benefit recipients. To qualify for the £450 DWP payment, individuals must have been receiving at least one of the following benefits between 10 July and 4 August 2025:
| Qualifying Benefit | Eligibility Condition |
|---|---|
| Universal Credit | Active claim during qualifying window |
| Income-Based Jobseeker’s Allowance (JSA) | Ongoing payment or backdated eligibility |
| Income-Related Employment and Support Allowance | Must be receiving income-related ESA |
| Income Support | Claimants meeting income threshold |
| Pension Credit | Low-income pensioners with eligible status |
| Working Tax Credit | Must meet low-income work requirements |
| Child Tax Credit | For families with dependent children under income limits |
Only one payment will be made per eligible household to prevent duplication.
DWP Payment Schedule – August 2025 Rollout
The £450 DWP payment will be distributed automatically, with no need for recipients to apply. The rollout will occur in stages, based on the type of benefit being claimed.
| Benefit Type | Expected Payment Date Range |
|---|---|
| Universal Credit | 12 August – 15 August 2025 |
| Income Support / ESA / JSA | 16 August – 20 August 2025 |
| Tax Credit Recipients | 22 August – 26 August 2025 |
| Pension Credit | 27 August – 30 August 2025 |
This staggered payment structure allows the DWP and HMRC to manage millions of transactions efficiently.
How Will You Receive the £450 Payment?
All qualifying individuals will receive the £450 Cost of Living Payment directly into their bank accounts. You do not need to apply, and the payment will appear with one of the following references:
- “DWP COLP” – For DWP-administered benefits
- “HMRC COLP” – For tax credit recipients
Important points to note:
- The payment is non-taxable
- It will not affect benefit caps
- It is not considered income for tax or benefit calculation
- Those eligible through both HMRC and DWP will only receive one payment from one agency
Why This £450 Payment Is Crucial in August 2025
This August cost of living support plays a critical role in helping families and individuals manage essential costs, especially during a financially burdensome summer period.
With energy bills, food prices, and housing expenses remaining high, this payment provides direct relief.
Key benefits of the payment include:
- Help with electricity and gas bills
- Support for food and daily essentials
- Assistance with back-to-school expenses for families with children
- Reduced dependency on credit cards or payday loans
It also offers peace of mind to elderly and vulnerable individuals who may be struggling on fixed incomes.
The UK £450 Cost of Living Payment in August 2025 is a targeted relief measure designed to ease the pressure on the country’s most financially vulnerable citizens.
With automatic disbursement, clear eligibility criteria, and a defined payment schedule, the government aims to make the process as efficient and impactful as possible.
If you receive Universal Credit, Pension Credit, or another qualifying benefit, check your bank account in August for the £450 payment. For many households, it’s a timely boost during an ongoing period of economic stress.
FAQs
Do I need to apply for the £450 DWP payment in August 2025?
No. The payment is automatic for eligible benefit recipients with no separate application required.
What if I qualify under both DWP and HMRC benefits?
You will receive only one £450 payment, regardless of how many qualifying benefits you receive.
Will the £450 payment affect my other benefits or tax credits?
No. It is a non-taxable one-time payment and will not affect your existing benefits or tax thresholds.