As energy bills, food costs, and everyday expenses continue to rise, millions of UK residents are awaiting the confirmed scheduled £450 Cost of Living Payment for July 2025.
The UK government has reportedly finalised a new support package designed to assist low-income and vulnerable households in managing ongoing financial pressures. This £450 payment, part of a broader welfare initiative, is not available universally. Instead, it targets individuals receiving specific benefits or those in economically vulnerable groups. With inflation still impacting families and energy prices remaining high, this payment is viewed as a crucial support, especially as previous rounds of cost-of-living assistance ended earlier this year.
What is the £450 Cost of Living Payment?
The £450 Cost of Living Payment is a one-time support payment intended to help households that are already receiving means-tested benefits. It follows the earlier cost-of-living payments made between 2022 and 2024, where eligible households received between £150 and £900 in staged instalments.
This 2025 initiative is designed to provide continued relief, especially during the high-expense summer months when families typically face increased childcare and food costs.
Unlike regular benefits, this payment is tax-free, does not count towards the benefit cap, and will not affect any other benefits you receive.
Who Is Eligible?
To receive the £450 payment in July 2025, you must be receiving at least one of the following benefits during the qualifying period:
- 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
Eligibility is determined by whether you were entitled to receive any of the above benefits between 10 June and 30 June 2025. If your claim was backdated to this period, you may still qualify.
However, individuals who only receive contributions-based JSA or ESA (without income-based support) will not qualify for this payment.
When Will the £450 Be Paid?
The UK government has announced that payments will begin on 22 July 2025 and will continue through the end of the month. The funds will be deposited directly into the same bank account where you receive your regular benefits. No separate application is required.
If you only receive Tax Credits, your payment will likely be made in early August 2025 and will be processed directly by HMRC.
£450 Cost of Living Payment – Key Details
| Detail | Information |
|---|---|
| Payment Amount | £450 (one-time) |
| Payment Start Date | 22 July 2025 |
| Eligibility Benefits | Universal Credit, Pension Credit, Income-based JSA/ESA, Tax Credits |
| Qualifying Period | 10 June – 30 June 2025 |
| How It’s Paid | Automatic bank deposit |
| Affects Other Benefits? | No, tax-free and separate |
How to Check If You’re Receiving the Payment
The Department for Work and Pensions (DWP) will notify those who are eligible via text, email, or letter. You can also check your payment history on your Universal Credit online account or contact HMRC if you receive Tax Credits. If you believe you’re eligible but haven’t received your payment by mid-August, you can contact the relevant department to report a missing payment.
Be cautious of phishing scams—official government payments will never request personal or banking information via text or social media.
Why This Payment Matters
The £450 Cost of Living Payment is coming at a critical time for households struggling with rising prices and stagnant wages. It aims to bridge the gap left by previous support measures and help prevent the most vulnerable from falling deeper into financial hardship.
This payment also reflects the government’s recognition of the ongoing challenges faced by families, retirees, and workers on low incomes, providing essential support even beyond the winter energy crisis.
