The UK government has announced a new one-time payment of £450 for eligible families in August 2025. This initiative aims to ease the financial pressure caused by rising inflation, soaring energy bills, and increased living costs. The payment will directly benefit low-income households already receiving certain government benefits.
Objective
This payment is part of the Cost of Living support package for August 2025. Its purpose is to help millions of financially vulnerable citizens cover essential expenses like food, healthcare, electricity, gas, and rent. The Department for Work and Pensions (DWP) will send the amount directly to the bank accounts of eligible citizens.
Details
| Details | Information |
|---|---|
| Country | United Kingdom |
| Department | Department for Work and Pensions (DWP) |
| Beneficiaries | Low-income households |
| Amount | £450 |
| Payment Method | One-time payment |
| Payment Date | August 2025 |
| Official Site | gov.uk |
Eligibility
The £450 will be given only to those already receiving payments from the following schemes:
- Universal Credit
- Pension Credit
- Income Support
- Working Tax Credit
- Child Tax Credit
- Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA)
Additionally, beneficiaries must have received at least one payment from these schemes between 10 July 2025 and 4 August 2025 to qualify.
Payment Dates – August 2025
| Scheme | Estimated Payment Date |
|---|---|
| Universal Credit | 12–15 August 2025 |
| Income Support / JSA / ESA | 16–20 August 2025 |
| Tax Credit Beneficiaries | 22–26 August 2025 |
| Pension Credit | 27–30 August 2025 |
Payment Method
- The payment will be deposited directly into the recipient’s bank account.
- Bank statements will show DWP COLP or HMRC COLP as the reference.
- Eligibility will be confirmed using the existing government database.
- No application is required—payments will be automatic.
- The payment is tax-free and will not affect other benefits.
Purpose
The need for this payment comes from:
- High inflation increasing the price of food and essentials
- Rising energy costs putting pressure on households
- Growing rent rates, especially in cities
- Higher transportation costs impacting daily living
By issuing this payment, the government aims to provide timely relief to struggling households, demonstrating support during challenging times.
The £450 one-time payment is a direct step towards protecting vulnerable citizens from financial hardship, helping them meet basic needs while inflation continues to rise.
FAQs
When will the £450 payment be made?
In August 2025, with dates depending on benefit type.
Who is eligible for the £450 payment?
Those on benefits like Universal Credit or Pension Credit.
Do I need to apply for the £450 support?
No, payments are automatic for eligible people.
Is the £450 payment taxable?
No, it is completely tax-free.
Will this affect my other benefits?
No, it will not reduce other benefit payments.
