As committed, the UK Government continues to deal with the rising inflation and cost of living to provide aid to the targeted low-income households. The citizens around the UK will be provided a temporary extra cost-of-living payment amounting to £450 under the program run by the Department for Work and Pensions (DWP).
DWP Cost of Living Increase June 2025
The rising inflation and cost of living have severely targeted millions of households with vulnerable income around the UK, as a result of which they are unable to maintain a basic lifestyle. This has become a prime concern for the Government of the UK. Now, the Department for Work and Pensions (DWP) under the UK Government has initiated a new step to provide a one-off £450 cost-of-living payment to households to meet their basic expenses.
The £450 cost-of-living payment is a tax-free payment, and it will not impact the current benefits and will be deposited directly into the regular benefit account of the recipient. Unlike other benefits, which required a long procedure of filling an application form and further waiting for the benefit to get credited, this is a very simple procedure, as the amount will be directly transferred to those who are eligible for this benefit. In this article, you will get an overview of all the related details with respect to the new scheme launched by the government.
UK Extra Cost of Living 2025: Overview
| Article On | DWP Cost of Living Increase 2025 |
| Administered By | Department of Works and Pension (DWP) |
| Country | United Kingdom (UK) |
| Beneficiaries | UC, PC, JSA, ESA, Income Support, Disability benefit |
| Payment Amount | £450 (one-off payment) |
| Payment Type | Direct deposit into the benefit account by the DWP |
| Benefit Impact | Automatic, and Non-taxable |
| Last Date to apply | By June 2025 |
| Category | Government Aid |
| Official Website | gov.uk |
What Do You Understand by the Cost of Living Increase in 2025?
The UK Government is working diligently to provide financial assistance to households that are severely targeted by the increasing cost of basic amenities such as food, shelter, education, and transportation.
The Department for Work and Pensions (DWP) has come up with a new initiative to provide an additional cost-of-living payment of £450 to those households who are affected by the rising inflation. This is a one-time payment where the individual gets the benefit directly in their benefit account without any unnecessary delay. With the help of such initiatives, the Government can reduce financial burden and ensure to provide the basic amenities.
Who Will Receive the Cost of Living Increase in 2025?
Not everyone is entitled to get the increase in the Cost of Living payment. Here is the list of the eligible individuals who will qualify for the benefits:
- Resident of the UK
- JSA (Income Based)
- ESA (Income Based)
- Universal Credit (UC)
- Pension Credit (PC)
- Income Support
- Child Tax Credit (CTC)
- Working Tax Credit (WTC)
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
Individuals who had previously received a ‘nil award’ will also qualify for receiving the benefits, even if deductions are made on the rent payment and arrears.
Why Does the Cost of Living Increase Matter?
The households around the UK have been under immense pressure to meet basic amenities as a result of inflation. The Department for Work and Pensions (DWP) has introduced the new payment for the following reasons:
- Preventing the vulnerable low-income households from reaching the stage of poverty.
- Reducing reliance on emergency aids and food banks in their local area.
- Helping and assisting the families as well as the individuals to stay alert during the inflationary spikes.
When will I receive the Additional Cost of Living Payment?
The additional cost-of-living payment of £450 will be received by those individuals who are already receiving DWP benefits or experiencing suspensions. The payments will start from May 2025, and most individuals will receive the benefit by June 2025.
The individuals receiving these benefits will get the payment on: –
- DWP Benefits (ESA and Universal Credit): By mid-May or early June 2025.
- HMRC Benefits (Tax Credit): By late May or mid-June 2025.
The payment procedure is automatic, as it gets credited to your benefit account.
How Can I Verify My Payment Status for the Cost of Living Increase 2025?
You can check your payment status by following these steps:
- Log in to the online portal of DWP using your credentials.
- Check your bank account statements. You will receive the payment labelled as ‘HMRC COL Payment’ or ‘DWP COL’.
In case you did not receive the payment, you can call the customer support helpline at 0800 169 0310, and if you still do not receive the payment even after you find yourself eligible, you must follow these steps: –
- Verify your qualification period and ensure your benefits are received at that time.
- If any changes have been made, update all the relevant information with the DWP.
- You can file a missing claim by visiting the official web page of the DWP.
Will I Get a Larger Increase in Payments in 2025?
Till now, there has been no official confirmation of a further increase in cost-of-living payments in 2025. Financial assistance is completely dependent upon the further escalations of the cost of living. You must keep an eye on the official website for further declarations.
| Official Website | Click Here |
| Homepage | moyle-council.org |
