As households feel the squeeze of rising bills, the UK Government is rolling out a £450 Cost of Living Payment in May 2025 to help those most in need. Delivered automatically or via simple claims, this one-off boost aims to ease energy, food, and transport costs. Here’s everything you need to know.
What is the £450 Cost of Living Payment?
The £450 Cost of Living Payment is a one-off, tax-free grant paid by the Department for Work and Pensions (DWP). It builds on previous support packages and targets households on means-tested benefits to help cover day-to-day expenses during spring and summer 2025.
Who’s Eligible?
You qualify if, on 1 May 2025, you’re in receipt of any of the following means-tested benefits:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Housing Benefit*
*Note: Housing Benefit only qualifies if you do not receive any of the above benefits.
You must also have a valid National Insurance number and a UK bank account in your name to receive payment.
How Much and When?
- Amount: £450 one-off payment.
- Payment Date: Scheduled to arrive in your bank account between 5–9 May 2025.
- No Action Needed: If you’re already receiving a qualifying benefit on the payment date, you’ll get the money automatically.
What If You Miss the Cut-Off Date?
If you start receiving a qualifying benefit after 1 May 2025, you can still claim your £450 by 30 June 2025:
- Log in to your GOV.UK account or create one.
- Go to “Manage your Cost of Living Payment.”
- Follow the prompts to confirm your identity, benefit details, and bank account.
- Submit your claim.
Make your claim before the 30 June 2025 deadline to ensure you receive your payment.
How Will You Get Paid?
- Automatic Payment: Most claimants will see the £450 credited straight to their bank account.
- Claim-Only Payment: If you start a benefit after 1 May or your account details change, you’ll be prompted to claim manually.
You’ll receive a letter from DWP confirming payment details.
What If You Move or Change Bank Accounts?
If you change address or bank details before your payment:
- Update your details via your online benefit account (e.g., Universal Credit journal) or by calling DWP.
- If you’re on Pension Credit, update your details through the Pension Service:
Pension Credit Manage Account
Updating ensures the payment goes to the right place.
FAQs
Q: Is the £450 payment taxable?
No. It’s tax-free and won’t affect your benefit entitlement or tax code.
Q: Can I receive multiple payments?
No. Only one £450 payment per household, even if you receive more than one qualifying benefit.
Q: I’m on legacy benefits. Do I qualify?
Only the specific means-tested benefits listed above qualify. Tax Credits or contributory benefits (e.g., New Style ESA) do not qualify.
Q: What if I receive Council Tax Reduction but no other benefit?
Council Tax Reduction alone does not qualify—you must also receive one of the listed benefits.
Q: Who to contact for help?
- Universal Credit & DWP benefits: call 0800 328 5644
- Pension Credit: call 0800 99 1234