As the cost of living crisis continues to impact UK households, the Department for Work and Pensions (DWP) is set to issue a £450 Cost of Living Payment in May 2025.
This initiative targets low-income and vulnerable individuals, offering timely financial support amid rising inflation and elevated utility costs.
Unlike previous one-off grants, this payment is part of a broader government strategy aimed at delivering sustained assistance to eligible citizens.
The £450 payment is automatic, requiring no application, and is directly deposited into recipients’ bank accounts.
Who Is Eligible for the £450 Payment in May 2025?
To receive the £450 Cost of Living Payment, individuals must be claiming at least one of the following means-tested benefits during the eligibility window of 1 March 2025 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
Those receiving contribution-based benefits only—such as Contribution-based JSA or ESA—are not eligible unless they also receive a qualifying income-based benefit.
Payment Timeline: When Will You Receive the £450?
The DWP has announced a structured timeline for distributing the £450 Cost of Living Payment:
| Recipient Group | Payment Start Date | Payment End Date |
|---|---|---|
| DWP Benefit Claimants | 13 May 2025 | 24 May 2025 |
| HMRC Tax Credit Recipients | 20 May 2025 | 28 May 2025 |
Payments will appear on your bank statement as “DWP COL” or “HMRC COL”, depending on the issuing agency.
Additional Support Measures Active in May 2025
Besides the £450 payment, the government and local councils have rolled out additional support schemes during May:
| Scheme | Support Offered | Eligibility Criteria |
|---|---|---|
| Warm Home Discount | £150 electricity bill credit | Low-income households receiving certain benefits |
| Council Tax Reduction | Discount or exemption | Based on income and living situation |
| Energy Price Cap | Capped per-unit energy rates | Automatically applied to all consumers |
| Discretionary Housing Payments | Extra rent assistance | Must be receiving Housing Benefit or Universal Credit |
| Household Support Fund | Food vouchers or bill support | Varies by local council |
These schemes are complementary to the £450 support and can be accessed independently.
Didn’t Receive Your £450 Payment? Here’s What to Do
If you were expecting a payment and it doesn’t arrive by 29 May 2025, follow these steps:
- Check Eligibility – Review whether you received one of the qualifying benefits during the specified period.
- Bank Statement Check – Look for transactions labeled “DWP COL” or “HMRC COL”.
- Wait Until After 29 May – Delays are possible due to phased rollouts.
- Report It – Use the official GOV.UK portal or call DWP/HMRC with your National Insurance number ready.
The £450 Cost of Living Payment in May 2025 is a vital form of relief for millions of UK residents facing continued financial pressure.
Eligibility is tied to specific benefits, and payments are issued automatically, ensuring streamlined support without additional paperwork.
Make sure you understand whether you qualify, verify your benefit status, and monitor your bank account for the payment.
Additional schemes like the Warm Home Discount and Council Tax Reduction offer even more financial relief during this period.
FAQs
Do I need to apply for the £450 Cost of Living Payment?
No, it is issued automatically to those receiving eligible benefits.
What if I receive Tax Credits from HMRC?
Your payment will be made between 20–28 May 2025 and appear as “HMRC COL.”
How do I know if I’m eligible?
You must be receiving a qualifying benefit between 1 March and 30 April 2025.