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The Department for Work and Pensions (DWP) is rolling out a £450 Cost of Living Payment this May 2025, providing much-needed financial relief to millions of low-income and vulnerable households across the UK.
This initiative is part of a continued government response to rising inflation, energy bills, and essential living costs that have burdened households nationwide.
This article outlines who is eligible, when you can expect your payment, and what to do if you don’t receive it.
Who Qualifies for the £450 Cost of Living Payment?
To receive the £450 Cost of Living Payment, individuals must have been eligible for at least one of the following means-tested benefits during the qualifying window from 1 March to 30 April 2025:
- Universal Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
It is crucial to note that contribution-based benefits (like Contribution-based JSA or ESA) do not count toward eligibility unless the individual is also receiving an income-based benefit.
When Will the £450 Be Paid?
The DWP will begin issuing payments from 13 May 2025, with most recipients receiving the funds by 24 May 2025. For those whose benefits are administered by HMRC, payments will be made between 20 and 28 May 2025.
The payment will be automatically deposited into bank accounts with the reference “DWP COL” or “HMRC COL,” depending on the issuing agency.
Payment Schedule
| Agency | Payment Start Date | Payment End Date | Bank Statement Reference |
|---|---|---|---|
| DWP | 13 May 2025 | 24 May 2025 | DWP COL |
| HMRC | 20 May 2025 | 28 May 2025 | HMRC COL |
Additional Government Support Available in May 2025
In addition to the £450 Cost of Living Payment, several support schemes are available this May for eligible households:
| Support Scheme | Benefit | Eligibility |
|---|---|---|
| Warm Home Discount | £150 off electricity bills | Low-income, vulnerable households |
| Council Tax Reduction | Discount/exemption from Council Tax | Income and circumstances-based |
| Energy Price Cap (Ofgem) | Limits on energy unit pricing | Automatically applied |
| Discretionary Housing Payment | Extra support for rent or housing costs | Must receive Housing Benefit or UC |
| Household Support Fund | Vouchers/cash for essentials via local councils | Varies by local authority |
Households are encouraged to check with local councils and community organisations for additional support and time-sensitive programs during May and June.
What to Do If You Don’t Receive the Payment
If eligible individuals have not received the payment by 29 May 2025, the DWP advises the following steps:
- Check eligibility during the qualifying period (March–April 2025).
- Review bank statements for “DWP COL” or “HMRC COL” entries.
- Wait until 29 May before contacting support.
- Contact DWP or HMRC via the GOV.UK website to report a missing payment.
Have your National Insurance number and benefit information ready for verification.
The £450 DWP Cost of Living Payment in May 2025 is a timely financial lifeline for many struggling households.
By streamlining distribution and pairing this support with complementary schemes like the Warm Home Discount and Council Tax Reductions, the government aims to ease the burden of inflation and rising living costs.
Be sure to check your eligibility, monitor your account, and act quickly if you encounter issues with the payout.
FAQs
Who will automatically receive the £450 payment?
Anyone receiving eligible means-tested benefits between 1 March and 30 April 2025 will automatically receive the payment—no application is necessary.
Will the £450 payment affect my existing benefits?
No, this payment is non-taxable and does not affect your benefit entitlements.
What if I recently applied for a qualifying benefit?
If you receive a decision showing you were eligible during the qualifying dates, you will still receive the payment, even if the decision is made later.