With the rising cost of everyday living, millions of households across the United Kingdom (UK) prepared to receive a new round of financial assistance this summer. The DWP, or Department for Work and Pensions, has confirmed that eligible recipients will receive a payment of £450 in August 2025, which will be automatically paid. This payment will assist low-income families with the rising cost of energy, food, and general expenditures.
This payment is part of the ongoing initiative by the United Kingdom government to relieve the impact of incessant rising inflation. Unlike the previous all-inclusive payments, this year’s payments are limited to recipients of certain benefits and to those with specific qualifying criteria. Most importantly, there is no need to apply as payments will be made automatically based on government records of the benefits disbursed.
Who Qualifies for the £450 Payment?
Qualifying benefits are listed as follows:
Universal Credit
Income Based Jobseeker’s Allowance (JSA)
Income Related Employment and Support Allowance (ESA)
Income Support
Pension Credit
Working Tax Credit or Child Tax Credit
It is crucial to highlight that claimants receiving contribution-based ESA or JSA (“New Style”) are ineligible unless they also claim one of the qualifying benefits. In the case of joint claimants, the household is eligible for a single payment. There is a minimum residency condition for individual claimants, so they must have resided in the UK during the qualifying timeframe.
| Benefit Type | Payment Window |
|---|---|
| Universal Credit | August 24–26, 2025 |
| Pension Credit / Income Support | August 27–29, 2025 |
| Tax Credits | August 30 – September 1, 2025 |
Payment Schedule and Statements
The Department for Work and Pensions (DWP) will begin disbursing payments in phases during late August. The disbursement schedule is summarized below for clarity:
Bank statements will feature “DWP COL” or “HMRC COL” as the transaction description for the deposits.
No Application Required: Essential Information for Multiple Recipients
Most DWP and HMRC processes will function automatically, detecting and flagging eligible recipients, which makes this payment effortless for great majority. However, to maximize efficiency, these strategies will need to be addressed: keeping bank details up to date, no suspensions or reviews on benefit claims, and contact information changes. There is an online inquiry portal provided by the government for recipients who eligible but do not receive payment by August 10.
More Aid Anticipated for Late 2025
The 2025 payment of £450 is one of several scheduled throughout the year as a form of relief for the cost of living. Pensioners are set to receive an increase in the winter fuel payment, and there are plans to possibly reinstate the Energy Bill Support Scheme. Local councils will also be issuing grants towards the Household Support Fund through the year 2025, especially geared towards individuals who may not qualify for the direct payment but still require aid.
