Millions of people across the UK are set to receive a one-off £450 Cost of Living Payment this July 2025. The UK government has confirmed this financial boost to help low-income households navigate ongoing challenges, including inflation, steep energy costs, and rising housing expenses. This support will be paid automatically to those who qualify, mainly individuals on means-tested benefits.
If you’re currently receiving benefits such as Universal Credit or Pension Credit, you may be among those who receive this vital financial support. Here’s a detailed guide to what the payment covers, when it will arrive, and how to make sure you don’t miss out.
What Is the £450 July Cost of Living Payment?
The £450 payment is a one-off, non-taxable financial support measure approved by the UK government for July 2025. It aims to help benefit claimants cope with the high cost of living by offering a timely cash injection. Administered by the Department for Work and Pensions (DWP), the payment will go directly into recipients’ bank accounts.
There is no application process. The payment will be issued automatically to eligible households who were receiving qualifying benefits during a yet-to-be-confirmed assessment period.
Overview
| Details | Information |
|---|---|
| Amount | £450 (one-time payment) |
| Start Date | From July 19, 2025 |
| Payment Method | Direct deposit into existing benefits bank account |
| Eligibility | Receiving income-based benefits during qualifying week |
| Reference Code | “DWP COLP” + National Insurance number |
| Final Payment Date | July 31, 2025 |
Eligibility Crriteria
To receive the payment, you must have been entitled to income-related benefits during a government-defined qualifying period. Although the exact qualifying week is yet to be announced, the payment will cover recipients of:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
Those who receive Working Tax Credit or Child Tax Credit may also be eligible, though only if they meet specific additional criteria.
Payment Schedule
Eligible individuals will start receiving their £450 payments from July 19, 2025, with all disbursements expected to be completed by July 31, 2025.
There will be no advance notice—so recipients should regularly check their bank account activity during this period. The payment will be listed under the transaction code “DWP COLP” followed by your National Insurance number.
If you do not see the payment by the end of July and believe you’re eligible, you should contact the DWP immediately.
How Will You Know If You’ve Received It?
There won’t be any formal letter or message announcing your payment. You’ll need to track the deposit via your bank account. Look for the line item labeled:
“DWP COLP [Your NI Number]”
This is the only identifier you’ll receive. If the payment doesn’t arrive by July 31, and you believe you meet the criteria, reach out to DWP through your usual contact method, such as the online portal or local Jobcentre.
FAQs
Q: Will I need to apply for the £450 payment?
A = No, it will be issued automatically if you’re eligible.
Q: What is the payment reference I should look for?
A = “DWP COLP” followed by your National Insurance number.
Q: When will I receive the payment?
A = Between July 19 and July 31, 2025.
