Have you heard rumours that you will soon receive a £450 cost of living payment? If you’re one of the millions feeling the financial squeeze in 2025, you’re probably wondering if this payment is real, who gets it, and when. There’s a lot of buzz online—some of it fact, some fiction. That’s why we’ve put together this easy-to-follow guide to clear the confusion and give you the straight facts about what’s happening, what’s been confirmed, and what remains a rumour.
- No official confirmation: As of 18 July 2025, the UK Government has not confirmed a £450 payment.
- Rumoured details: The payment is believed to support means-tested benefit recipients, but it remains speculative.
- Expected date if real: Payment could occur between 19 and 31 July 2025.
- Eligibility: Universal Credit, Pension Credit, income-based JSA/ESA, and certain tax credits.
- Verification tip: Always check GOV.UK or DWP announcements before believing social media rumours.
What is the £450 Cost of Living Payment 2025, and why does it matter?
This proposed one-off, tax-free payment aims to provide financial relief to low-income households struggling with ongoing economic pressure. Although widely discussed online, as of 18 July 2025, there has been no official confirmation from the UK Government or the Department for Work and Pensions (DWP) about the existence of a £450 payment scheduled for July. The concept mirrors earlier cost of living support packages, which helped cover essential costs like food, energy, and rent. If confirmed, it could benefit millions across the UK—but for now, it remains speculative and unverified.
Who is eligible for the £450 Cost of Living Payment 2025?
What benefits qualify you for the payment?
To be eligible, you must have been receiving one of the following means-tested benefits during the qualifying week:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
The DWP will automatically issue the payment to those eligible, and there’s no need to apply separately.
Are there any exceptions or exclusions?
You won’t be qualified if you just get:
- New-Style ESA or JSA (contribution-based)
- Disability Living Allowance (unless combined with a qualifying benefit)
- Personal Independence Payment (PIP) without other income-based benefits
Joint claimants will receive only one payment per household, even if both individuals qualify individually.
What exact dates form the qualifying week for the £450 Payment?
While the official dates haven’t been released yet, it’s expected to follow a similar pattern to past cost-of-living payments. For example, the qualifying period for the earlier £250 payment in 2025 was 15 January to 28 February. We anticipate that the qualifying week for the £450 payment will fall between May and June 2025. Keep checking the DWP or GOV.UK for updates.
When will the £450 Cost of Living Payment 2025 be paid?
- Payment window: Between 19 and 31 July 2025
- Method of payment: Direct transfer to the bank account associated with your benefits
- Payment reference: Your National Insurance number is followed by “DWP COLP” as the payment reference
If you have not received your payment by 31 July, it’s advisable to contact the DWP or HMRC, depending on which benefit you claim.
How is the £450 paid, and is it taxable?
What is the payment method?
Payments are made automatically to the account where you receive your benefits. No application or separate claim is necessary.
Is the payment taxed or does it affect other benefits?
No. The £450 cost-of-living payment:
- Is non-taxable
- Won’t affect existing benefits or tax credits
- Doesn’t count towards the benefit cap
This ensures you receive the full amount without deductions or penalties.
How does the £450 compare with previous payments?
| Payment Year | Amount | Beneficiaries | Qualifying Period |
|---|---|---|---|
| 2022 | £325 | Universal Credit, ESA, JSA, etc. | September 2022 |
| 2023 | £299 | Means-tested benefits | February 2023 |
| July 2025 | £450 | Same as above | To be confirmed (May-June) |
Compared to previous years, the 2025 payment is the highest yet, recognising the severity of ongoing cost pressures.
Is the £450 Cost of Living Payment Confirmed by the Government?
The £450 cost of living payment has not been formally confirmed by the UK government as of July 18, 2025. Neither the Department for Work and Pensions (DWP) nor His Majesty’s Revenue and Customs (HMRC) has issued a press release or update on GOV.UK regarding such a payment. Until there is formal guidance or announcement, treat the £450 payment as speculative.
Why Are So Many People Talking About the £450 Payment?
The rumour gained traction due to the resemblance to previous confirmed payments, like the £301 and £299 payments in 2023 and 2024. These were legitimate, structured support phases widely shared on media. Because the £450 rumour includes similar eligibility references and payment timelines, it has appeared credible despite a lack of official validation.
Could the £450 Payment Be Introduced Later in 2025?
Although not confirmed, it remains possible that the government could announce such support later this year. If introduced, it would follow:
- An official announcement by HM Treasury or DWP
- Updates on GOV.UK
- Eligibility criteria and payment timelines
- Communication to local authorities
Until these steps occur, the payment remains unconfirmed.
Can I get the £450 and other support too?
Yes, the £450 payment does not disqualify you from receiving other forms of support. You can also:
- Use the Household Support Fund to apply for assistance from the local council (£180–£500).
- Receive the Winter Fuel Payment if you’re a pensioner (£200-£300)
- Request Budgeting Advances for emergencies
- Apply for discretionary housing payments and council tax support
This layered support system ensures that the most vulnerable can access multiple financial relief streams.
What if I don’t receive the £450 Payment?
Who to contact?
- Universal Credit: Contact the Universal Credit helpline
- Tax Credits: Call HMRC’s tax credit hotline
- Pension Credit or others: Contact DWP
Common reasons for delay:
- Bank account details are outdated
- You’re outside the qualifying week
- You recently applied but your benefit wasn’t awarded yet
You can report a missing payment through your benefits portal or by phone.
Where else can I get help in 2025?
- Local council support: Household Support Fund – Funded until March 2026, this scheme provides cash, vouchers, and utility grants. Eligibility varies by council.
- Pensioner support: Winter Fuel Payment – Reinstated in June 2025, offers £200-£300 automatically to eligible pensioners.
- Charitable and community aid: Turn2Us grants, British Gas Energy Trust, and StepChange debt advice.
These organisations offer practical, one-on-one support beyond government schemes.
Why did the government introduce the £450 Payment?
With inflation on essentials like food and energy still high, the government implemented this one-off payment to cushion low-income families. Experts such as Martin Lewis of MoneySavingExpert.com have praised such measures for helping those “most impacted by the cost-of-living crisis.”
It also acts as a follow-up to previous support packages and addresses criticisms that earlier payments weren’t enough.
What is the £450 payment in May?
Is there a confirmed £450 payment scheduled for May 2025?
As of 18 July 2025, there is no confirmed or officially announced £450 cost of living payment scheduled for May. Although the Department for Work and Pensions (DWP) and HMRC have not released a formal announcement or press release confirming its existence, the notion that such a payment exists has spread rapidly on social media and unofficial news websites.
Why do people believe there is a £450 payment in May?
The rumour mimics previously verified cost of living support, including payments in 2023 and 2024. These legitimate payments followed official announcements, included eligibility criteria, and were reported on government portals. The similarity in payment amount and eligibility has led to widespread confusion.
What should you do if you’ve seen posts about this payment?
- Check GOV.UK or the DWP site for any new announcements
- Avoid sharing personal details in response to unofficial messages
- Contact your benefits provider or a local adviser if you’re unsure about your status
Until formal confirmation appears on official platforms, the £450 payment for May should be considered speculative.
Conclusion
If you were on a qualifying benefit during the DWP’s upcoming qualifying week, expect a £450 cost-of-living payment automatically between 19 and 31 July 2025. It’s tax-free, non-repayable, and designed to help with essentials during an economically turbulent time. Additional help is also available through local councils, the Winter Fuel Payment, and charitable grants. Check your eligibility now and stay informed.
FAQs about £450 cost of living payment
Do I need to apply for the £450 payment?
No. It is paid automatically if you’re eligible.
What if I receive Universal Credit and Pension Credit?
You will only receive one payment per household.
Will this affect my income-related benefits?
No. It’s non-taxable and doesn’t count towards the benefit cap.
I’m on disability benefits—do I qualify too?
Only if you’re also receiving one of the qualifying means-tested benefits.
Can I expect more cost of living payments later this year?
There are no confirmed additional payments, but further support may be announced in the Autumn Statement.
I’m Laura Wilson, a passionate blogger and content creator with a deep interest in business, finance, and entrepreneurship. I’ve had the opportunity to write for several premium blogs, sharing insights & practical advice for individuals & small businesses. I’m the founder and publisher of ukbusinessmag.co.uk, where I focus on creating valuable, easy-to-understand content to help UK startups & SMEs grow.
