According to an announcement from the UK government, they will be issuing a one-off payment of £450 in August of 2025 intended for lower income households. The payment is intended to help with the ever increasing prices of living. Payments will be made through the Department for Work and Pensions (DWP). The payment will be made at the time when the household financial situation is under severe strain.
Who is Eligible for the Payment?
The payment is targeted towards individuals who are documented to be under certain benefits during a specific time window from 11th March to 7th April 2025. Some of the qualifying benefits are: Universal Credit (with the exception of zero award claims), Income Based Jobseeker’s Allowance, Income Related Employment and Support Allowance, Income Support, Pension Credit along with a combination of Working Tax Credit and Child Tax Credit. Unlike previous years’ tiered support systems, which ranged from £301 to £900, this year’s support is in the form a flat amount for all who meet the qualifying criteria.
| Aspect | Details |
|---|---|
| Amount | £450 one-time, non-taxable payment |
| Eligibility Period | Receiving specified means-tested benefits between March 11 – April 7, 2025 |
| Payment Dates | May 13 – May 31, 2025 (automatic deposits) |
| Primary Beneficiaries | Low-income households, pensioners, disabled, renters |
| Purpose | Short-term relief from inflation and high living costs |
When and How Will It Be Paid?
As no application is required for payment, it will be deposited automatically into the bank accounts reciepients used for their benefits from May 13, 2025 onwards. As is standing, the DWP expects to have most payments completed by the end of May, but different groups will receive funds on a staggered schedule starting with Universal Credit, Income Support, and Pension Credit claimants, followed by Tax Credit recipients. The payment is non-taxable and will show on bank statements with “DWP COLP August 2025” or “HMRC COLP August 2025” as payment references.
Why This Payment Matters
With food prices more than 8% higher than a year ago, average household energy expenditures nearing £1,800 per year, and exorbitant rent prices for housing across the United Kingdom, numerous families and pensioners are finding it difficult to cope. This £450 payment is particularly beneficial for single-parent families, elderly pensioners living on their own, low-income disabled persons, working poor families, and renters with high council tax bills. As helpful as this payment is, experts are still warning that this is ultimately a temporary measure for more comprehensive reforms to be made regarding the benefits system, housing, and the energy markets.
Beware of Scams
With every large payment announced, there is always a possibility of a scam. The DWP warns through their emails, calls, or texts requesting personal details or claiming recipients must “apply” for the payment. As stated through official DWP guidance, no personal information will be solicited regarding this payment. DWP advises that if anyone has payment issues they should approach official DWP help or Citizens Advice.