£400 DWP Cost of Living Help: The impact of inflation has affected millions of UK households. Be it the prices of everyday goods, energy bills or rent everything is getting expensive. At such a time, the relief amount provided by the government the Cost of Living Payment of £400 given by DWP is no less than a lifeline for the people.
This special assistance scheme of the Department for Work and Pensions (DWP) is for those citizens who already come under any government assistance such as Universal Credit, Pension Credit, or other benefit schemes. Let us understand in detail who will get this £400 assistance, when will it be available, and what will have to be done to get it.
What is this Cost of Living assistance of £400?
This assistance amount is given by the government to those individuals and families who are having difficulty coping with the rising cost of living. It is called “Cost of Living Payment” and it is given in different phases. The new instalment being released in 2025 is an additional £400 assistance that will be sent directly to the bank accounts of eligible beneficiaries This is not a loan and does not have to be repaid in the future. It is a completely tax-free payment that you can spend as you please.
Eligibility – Who is entitled to £400?
According to the guidelines issued by the DWP, the following beneficiaries may be eligible for this payment:
- Universal Credit recipients: If you received Universal Credit in April 2025 and your income is below the set limit, you will be eligible for this assistance.
- Pension Credit beneficiaries: Automatic payment would also be done on low-income pensioners who are already receiving Pension Credit.
- Jobseeker Allowance (JSA) that is dependent on income: Those who receive the income-based version of JSA are also eligible.
- Income Support or Employment and Support Allowance (ESA): Both of these schemes are also eligible if they are income-based.
- Working Tax Credit or Child Tax Credit: If you receive tax credits through HMRC, you may be given this amount separately.
Who is not eligible for this?
If you are only receiving New Style JSA, New Style ESA, or Contribution-Based Benefits, you are not eligible for this support.
You may also be denied this payment if your monthly income is above the limit set by the DWP.
Payment date – when will you get this payment of £400?
The DWP has not yet announced the exact date, but according to insiders and financial advisers, this payment could start in the second quarter of 2025, i.e. June or July.
Possible payment dates:
- Phase 1 – 10 June 2025
- Phase 2 – 24 June 2025
Remaining eligible beneficiaries – may get payment by the first week of July
Note that this amount will be sent via Direct Bank Transfer. Those who are already registered in DWP schemes do not need to do anything.
How to Claim
There is no need to apply separately for this scheme, if you are already part of any eligible benefit scheme. DWP will automatically send you the payment based on your records.
But if you think you’re eligible but:
- You’ve recently applied to a scheme
- Your benefit payments have been paused
- Your personal information (such as bank details) has changed
You can take the following steps:
- Login to the DWP or HMRC website
- Confirm your benefit status
- Update your information (such as address, bank account)
- Fill in the Cost of Living Payment query form (if you haven’t received a payment)
Is this amount taxable?
No. This payment is completely tax-free. It won’t count towards your Universal Credit, Housing Benefit, or other support amounts.
How to spot if you’re being scammed?
The DWP and HMRC will never:
- Call you for bank details
- Ask you to click on a link in an email or SMS
- Are never asking for your NI (National Insurance) details
- Only visit gov.uk or HMRC’s official portal.
Is there a possibility of more payments in the future?
Yes, the government may consider the possibility of issuing more Cost of Living Payments in the next budget, if the inflation rate does not improve In addition, the DWP may release another installment by the end of 2025, which will be announced later.
Conclusion
At a time when inflation is affecting everyone’s pockets, the £400 Cost of Living assistance provided by the DWP is providing a significant relief. This payment not only provides support to the economically weaker sections, but is also a signal from the government that they understand and support the needs of their citizens. If you are already a beneficiary of a DWP scheme, and your income is within the prescribed limit, you can get this assistance directly in your bank account without any additional process. It is important that your bank information and personal details are correct and updated so that the payment can be made.
FAQs
Q1. What is the £400 DWP Cost of Living Payment?
A. It is a one-time, tax-free support payment provided by the UK Government through the Department for Work and Pensions (DWP) to help low-income households manage the rising cost of living.
Q2. Who is eligible for the £400 DWP payment?
A. People receiving benefits like Universal Credit, Pension Credit, Income-related ESA or JSA, Income Support, Working Tax Credit, or Child Tax Credit may be eligible, depending on their income and benefit status.
Q3. Do I need to apply for the £400 payment?
A. No. If you are already receiving eligible benefits and meet the criteria, the payment will be sent automatically to your bank account.
Q4. When will the £400 payment be made?
A. Although exact dates are not confirmed, it is expected to be issued between June and July 2025 in phased deposits.
Q5. How will I receive the £400 payment?
A. The payment will be made through Direct Bank Transfer to the same account where you receive your regular benefit payments.
