The UK government has introduced a one-time £450 Cost of Living Payment for August 2025 aimed at supporting low-income households facing rising inflation. This tax-free payment will be made automatically to eligible individuals, providing vital relief to cover everyday essentials such as food, rent, healthcare, and utility bills.
| Detail | Information |
|---|---|
| Article On | UK £450 Cost of Living Payment August 2025 |
| Country | United Kingdom |
| Department | Department for Work and Pensions (DWP) |
| Beneficiaries | Low-Income Families |
| Amount | £450 |
| Payment Method | Direct Deposit |
| Payment Date | August 2025 |
| Category | Government Aid |
Purpose of the £450 Payment
This payment forms part of the government’s August 2025 cost-of-living support package designed to alleviate financial pressures arising from inflation’s impact on housing, energy, and food costs. It will help vulnerable families manage urgent bills and essential needs, aiming to improve financial stability across the country.
Who Is Eligible
To qualify, recipients must be currently receiving one of these state benefits and have received a payment between 10 July and 4 August 2025:
- Universal Credit
- Pension Credit
- Income Support
- Jobseeker’s Allowance (income-based)
- Employment and Support Allowance (income-related)
- Working Tax Credit
- Child Tax Credit
Eligible individuals will be automatically identified through DWP or HM Revenue and Customs (HMRC) systems.
Payment Schedule for August 2025
Payments will be made directly into recipients’ accounts on the following dates, depending on the specific benefit:
| Benefit Type | Payment Dates (August 2025) |
|---|---|
| Universal Credit | 12-15 August |
| Income Support / JSA / ESA | 16-20 August |
| Tax Credit Beneficiaries | 22-26 August |
| Pension Credit | 27-30 August |
Payments will appear with references such as “DWP COLP” or “HMRC COLP” based on the benefit provider.
How the Payment Will Be Delivered
The £450 payment is a one-off, tax-free deposit made automatically with no need for applications. It will not affect benefit caps or other entitlements and is strictly for August 2025.
Why This Payment Is Important
With inflation continuing to pressure household budgets, this payment acts as an immediate financial lifeline for many struggling with essential living costs. It offers critical support to help prevent slipping behind on bills and provides peace of mind during economically challenging times.
The targeted nature of the payment ensures that those already reliant on benefits receive help on time, reflecting the UK government’s commitment to addressing living cost challenges effectively. This £450 Cost of Living Payment is a vital step toward supporting the country’s most vulnerable populations during a period of sustained financial pressure.