With inflation continuing to push up household bills, grocery prices, and housing costs, the UK government has unveiled another crucial lifeline for struggling families. The £450 Cost of Living Payment is scheduled for August 2025, and will be distributed to millions of eligible households already receiving state benefits. This latest measure forms part of a broader campaign to ease financial stress on low-income individuals amid ongoing economic challenges.
The Department for Work and Pensions (DWP) has confirmed that this one-time payment will be automatically deposited into recipients’ bank accounts, with no need for a separate application. If you received any qualifying benefits between 10 July and 4 August 2025, you may be on track to receive this mid-year payout.
Table of Contents
Overview
| Category | Details |
|---|---|
| Payment Amount | £450 (one-time) |
| Eligibility Period | Must be receiving qualifying benefits between 10 July and 4 August 2025 |
| Disbursement Window | 12 August to 30 August 2025 |
| Payment Method | Direct deposit into usual benefits bank account |
| Application Required | None – processed automatically |
| Issuing Departments | Department for Work and Pensions (DWP) or HMRC |
Eligibility Criteria
This August 2025 payment is reserved for UK residents who are currently receiving certain means-tested benefits. These benefits act as the primary eligibility criteria for the automatic payout. Individuals who received a payment for any of the following between 10 July and 4 August 2025 are covered:
- Universal Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
As long as a qualifying benefit was active during the stated period—even if only for part of it—recipients are eligible to receive the full £450. This ensures that no one is excluded due to brief gaps or low award amounts.
DWP August Payment Schedule
The DWP and HMRC have planned a staggered disbursement throughout August 2025 to manage the massive volume of transactions. Each group will receive the payment based on the benefit they claim:
| Benefit Type | Expected Payment Window |
|---|---|
| Universal Credit | 12 August – 15 August 2025 |
| Income Support / ESA / JSA | 16 August – 20 August 2025 |
| Child or Working Tax Credit | 22 August – 26 August 2025 |
| Pension Credit | 27 August – 30 August 2025 |
How Will the £450 Be Delivered?
The £450 DWP payment will be clearly marked in bank statements as “DWP COLP” (for DWP-related benefits) or “HMRC COLP” (for those receiving Tax Credits). It’s important to note that:
- Only one payment per eligible person or household will be made
- Recipients of both DWP and HMRC-administered benefits will get just one payment, not double
- The payment is non-taxable and will not affect existing benefits or benefit caps
- There’s no need to apply – the process is fully automatic
This straightforward rollout ensures that eligible individuals can receive the funds without having to navigate complex forms or systems.
Although not a permanent solution, this support offers breathing space while long-term economic policies are reviewed.
Payment Delay?
If you believe you’re eligible but don’t receive the £450 payment by the end of August, here are the steps to follow:
- Wait until September – Payments are made in stages and delays are possible due to banking variations
- Check your benefit status – Confirm you received a qualifying benefit between 10 July and 4 August 2025
- Verify your bank details – Make sure your payment information with the DWP or HMRC is current
- Contact the issuing agency – Reach out to the DWP or HMRC through the official contact channels
Addressing the issue promptly can help avoid further delays in receiving your entitled support.
FAQs
Q1:- Do I need to apply for the £450 payment?
A = No, the payment is automatic if you’re eligible during the qualifying period.
Q2:- Will the £450 payment affect my other benefits or taxes?
A = No, it’s a tax-free, non-deductible one-time support that doesn’t impact other benefits.
Q3:- When will I receive the £450 payment?
A = Between 12 and 30 August 2025, depending on the benefit you receive.
