DWP Confirms £450 Cost of Living Payment: A relief news has come from the UK government for the citizens struggling with inflationPlease, the applicant must be either Canadian by birth or a permanent resident 2023 taxable income should not be more than $150,000 An applicant should be at least 19 years of age An applicant must file his/her tax return for 2023 no later than the end of the calendar year 2024. This article will explain in detail who receives this money, what the eligibility requirements are, and when the payment will be made along with necessary considerations for applying.
What is this £450 assistance amount?
The British government has previously helped the economically weaker sections through Cost of Living Payments. This amount of £450 is being given specifically to those families who depend on Universal Credit, State Pension Credit or other income-based benefits This payment will be a tax-free amount, which will be deposited directly into the bank accounts of eligible people.
Eligibility Criteria
The DWP has set out some clear criteria to determine who is entitled to this payment
The beneficiary must be receiving one of the following benefits:
- Universal Credit (eligibility required within specific dates)
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Tax Credits (Working Tax Credit or Child Tax Credit)
Qualifying Dates: Eligibility will be calculated based on the status of your benefit claim on certain dates. These dates will be confirmed by the Government soon, but will usually be based on data up to late April or early May 2025.
Payment Date: The DWP has indicated that this £450 Cost of Living Payment will be distributed in the first or second week of June 2025. If you are eligible and your information is up to date, this amount will come directly into your bank account.
How will you receive the payment?
- Direct Deposit: If you have already activated the Direct Deposit facility with DWP or HMRC, then you will get this amount in the same account.
- Through Cheque: Those who do not have bank details, this amount will be sent in the form of a cheque.
- No Application Needed: You do not need to fill any kind of application for this payment. If you meet the eligibility criteria and your benefits are already active, you will automatically get this payment.
Who will not get this payment?
- Those whose income is above the prescribed limit.
- Those who are receiving only contribution-based JSA/ESA or only New Style benefits (not income-based).
- Those whose bank account or address is not updated in DWP records.
What does DWP aim to do with this payment?
The cost of living in the UK has risen rapidly in the last few years. Energy bills, rent, fuel and food have become expensive. This has increased financial pressure, especially on low-income groups and elderly citizens. DWP aims to provide some relief with this £450 assistance so that citizens do not get trapped in debt and can meet basic needs.
Other related government support schemes
If you are not eligible for this payment, you can still check out other schemes:
- Warm Home Discount
- Cold Weather Payment
- Household Support Fund
- Winter Fuel Payment
What to do to get the payment?
Those on National Insurance-based benefits only: If you’re only on “New Style Jobseeker’s Allowance” or “New Style Employment and Support Allowance”, which are contributory benefits, you’re not eligible for this payment. The DWP is only enrolling those on income-based benefits.
- If you’ve recently started receiving benefits: People who started benefits after the qualifying date will not get this payment, even if they’re currently on benefits.
- Joint claimants: If a spouse or two beneficiaries are claiming together, they will only get one joint payment, meaning a single payment of £450 will be valid for the whole household.
Take advantage of local support schemes
In addition, if you have local support needs, check out the following resources:
- Local Council Support Schemes: Many local councils offer services to their residents such as Council Tax Relief, Emergency Food Vouchers, and Winter Heating Grants. Visit your local council’s website to see what schemes are running.
- Food banks: Food banks run by the Trussell Trust and other organisations can also provide free rations or meal kits to those in need. You can find your nearest food bank online.
Conclusion
In this era of inflation, this £450 help from the government is going to provide relief to many families. Although it is not a permanent solution, it can prove to be extremely useful for immediate needs. It is important for you to check your eligibility regularly, keep your DWP records up to date, and regularly login to the government portal for any updates.
FAQs
Q1. Who is eligible for the £450 Cost of Living Payment?
A. Individuals or households receiving qualifying benefits such as Universal Credit, Pension Credit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), or Tax Credits during the qualifying period are eligible.
Q2. Do I need to apply to get the £450 payment?
A. No, this payment is automatic. If you’re eligible based on your benefits during the qualifying period, you will receive it without applying.
Q3. When will the £450 payment be made?
A. The Department for Work and Pensions (DWP) has confirmed that the payment will be issued in June 2025. Exact dates will be published closer to the time.
Q4. Will the payment come as a lump sum or in parts?
A. It will be issued as a one-time lump sum payment directly into your bank account (or by cheque if you don’t use direct deposit).
Q5. What if I receive both DWP and HMRC benefits?
A. You will only receive one £450 payment per eligible household, not multiple payments, even if you qualify under both DWP and HMRC-administered benefits.
