The cost of living crisis continues to squeeze household budgets across the UK, with rising inflation, energy bills, and food prices.
In response, the government has announced a new £450 cost of living payment scheduled for October 2025 to help ease the burden on vulnerable households.
This article breaks down who qualifies, how and when payments will arrive, what this support means for different groups, and what steps you should take now.
Why the £450 Payment Is Needed
Over the past years, many fixed-income households — pensioners, benefit recipients, low earners — have struggled to keep up with escalating costs.
Past support measures like the £300 Winter Payment in 2024 offered relief, but critics argue they fell short of matching real inflation.
The new £450 one-off payment is designed to act as a timely buffer ahead of the colder months, helping with essentials like energy, heating, rent, and food.
Who Will Be Eligible for the £450 Payment
The payment is targeted, not universal. Likely eligible groups include:
- Universal Credit claimants (especially low-income households)
- Pension Credit recipients (Guarantee and Savings Credit)
- Claimants of Income Support, income-based JSA, income-related ESA
- Working Tax Credit and Child Tax Credit recipients meeting means-tested criteria
Eligibility usually depends on having a qualifying benefit during a specified period. The government will typically roll it out automatically — you won’t need to apply, and payments will go to the same bank accounts already used for benefits or tax credits.
Payment Dates & Rollout in October 2025
The payment is expected to be phased during October. Based on typical DWP / HMRC scheduling:
| Benefit Type | Expected Payment Timing |
|---|---|
| DWP Benefits (Universal Credit, Pension Credit, Income Support, etc.) | Likely from second week of October |
| Tax Credit recipients (via HMRC) | Later in October, closer to month end |
| Final payment window | By 31 October 2025, most should receive it |
This staggered approach helps avoid system overload and ensures smooth processing.
How the £450 Payment Will Be Made
- Automatic – No separate application required
- Direct to bank account – Uses your existing benefit/tax credit bank details
- One lump sum payment — not split across months
- On your bank statement, you may see references like “DWP COLP” or “HMRC COLP” signaling the cost-of-living payment
The intention is simplicity and speed: eligible households just wait for the deposit to appear.
Impact Focus: Pensioners & Families
Pensioners
Many pensioners live on fixed incomes and face rising heating and fuel costs. If you get Pension Credit, you’re more likely to qualify.
However, numerous eligible older people don’t claim Pension Credit — so it’s essential to check your status and apply if possible.
Families with Children
Households receiving Universal Credit, Child Tax Credit, or Working Tax Credit may benefit significantly. The October timing is useful since school-related costs, bills, and other autumn expenses often increase.
Relationship With Other Support
This October payment sits alongside existing support schemes:
- Energy Price Guarantee frameworks to limit household energy costs
- Winter Fuel Payment (for pensioners)
- Cold Weather Payments triggered in very low temperatures
- Additional one-time assistance for disabled households
Together, these measures aim to create a safety net during months of high expenditure.
What to Do Now / Check Eligibility
- Confirm your benefit or tax credit status and ensure you were receiving a qualifying benefit during the eligible period
- Make sure your bank details with DWP / HMRC are up to date
- Monitor your account throughout October for a £450 deposit
- If you believe you qualify but don’t receive the payment by late October, contact DWP or HMRC to lodge an inquiry
The forthcoming £450 cost of living payment in October 2025 offers much-needed relief for households under pressure. While not everyone will qualify, many pensioners, low-income families, and benefit recipients will receive an automatic boost directly into their bank accounts.
To prepare, ensure your benefit status and bank information are current, and watch your account throughout October.
For those who fall through the cracks, be ready to contact DWP or HMRC. In an increasingly challenging cost environment, this payment is an important, though partial, support lifeline.
FAQs
Do I need to apply for the £450 payment?
No — the payment will be automatic for those who meet the eligibility criteria.
When will the payment arrive?
DWP recipients will likely receive it starting mid-October, while HMRC (tax credit) recipients should see it later in the month — by 31 October 2025 at the latest.
Does it affect my existing benefits or tax credits?
No — this one-off payment is tax-free and will not reduce your ongoing benefits or credits.