The DWP £400 Cost of Living Payment is making headlines again, and for good reason. With inflation remaining high and households across the UK still feeling the pinch from energy bills and rising food prices, this payment could provide much-needed relief. If you’re receiving certain means-tested benefits, there’s a strong chance you’ll see this one-off payment hit your bank account in early October 2025.
Whether you’re new to the system or just want to double-check your eligibility, this article breaks down everything you need to know about the DWP £400 Cost of Living Payment who it’s for, when it’s coming, how to make sure you don’t miss it, and what to do if you think you’re eligible but don’t receive it.
What is the DWP £400 Cost of Living Payment?
The DWP £400 Cost of Living Payment is a government-backed support initiative aimed at helping low-income households cope with the rising cost of living in the UK. This payment, expected in early October 2025, will be issued automatically to people on qualifying means-tested benefits. You won’t need to apply, but you do need to ensure your benefits are active and your details are correct. This support is part of the government’s wider plan to ease financial pressure during continued economic uncertainty.
Overview Table
| Detail | Information |
| Payment Amount | £400 (one-off) |
| Issued By | Department for Work and Pensions (DWP) |
| Expected Payment Date | Early October 2025 |
| Who Gets It | People on qualifying means-tested benefits |
| Application Required? | No – paid automatically if eligible |
| Affects Other Benefits? | No – non-taxable and does not count as income |
| Bank Reference | Likely marked as “DWP COL” or similar |
| Common Qualifying Benefits | Universal Credit, Pension Credit, Income Support, ESA, JSA |
Who is eligible for the £400 Cost of Living Payment?
Eligibility is key. The payment targets people who are already receiving specific means-tested benefits. These include:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
To qualify, you must have been receiving one of these benefits during a specified “qualifying period” that DWP will announce closer to the payment date. It’s also important to ensure your benefit claim is active and that your bank details are up to date in your DWP profile.
When will the payment be made?
According to current updates, the DWP £400 Cost of Living Payment is scheduled to be distributed in early October 2025. While no exact date has been officially confirmed yet, previous cost of living payments have typically rolled out over a 2-3 week window.
You can expect the payment to arrive directly in your bank account, with no action required from your side. It’s best to keep an eye out for a deposit reference that reads something like “DWP COL” or similar.
Will I need to apply to get the payment?
No, you won’t. This payment is made automatically to anyone who qualifies, just like previous cost of living payments. That means if you meet the eligibility requirements during the qualifying period, and your benefit claim is active, you should receive the money without having to fill out any forms or apply.
That said, you should double-check that your contact information and bank details are up to date with DWP. If your information is outdated, there could be delays in getting your payment.
How does this payment affect my taxes or benefits?
This one’s easy: it doesn’t. The DWP £400 Cost of Living Payment is tax-free and won’t affect your other benefits. It does not count as income, and it won’t reduce your entitlement to any other DWP payments.
This makes it a true top-up not just a reshuffling of funds. That’s especially helpful if you’re already budgeting every pound.
What if I don’t receive the payment?
If you think you should’ve received the DWP £400 Cost of Living Payment but didn’t, here’s what you should do:
- Check your bank account for any unfamiliar deposits
- Review your eligibility. Were you receiving a qualifying benefit during the correct period?
- Confirm your bank and contact details are up to date with the DWP
- Wait a few days delays can happen
- Contact the DWP if, after the full payment window, you still haven’t received anything
Being proactive here can save a lot of stress and make sure nothing is missed.
Why is the government offering this now?
This payment is part of the government’s ongoing strategy to ease the burden of high inflation and soaring living costs, especially for low-income families and vulnerable individuals. With energy prices still higher than they were pre-crisis and food inflation continuing to squeeze household budgets, the government recognises the need to act.
In recent surveys, nearly 50% of low-income households reported struggling to pay essential bills. A one-off payment like this won’t solve everything, but it can certainly help cover a few critical weeks.
FAQs
This payment is expected to be a one-off lump sum. It will not be split into multiple instalments.
No. If you’re eligible, the payment will be made automatically to your account.
The qualifying period is a set time frame announced by the DWP. You must be receiving eligible benefits during this time to qualify.
If you start receiving benefits after the qualifying period, you likely won’t be eligible for this specific payment. But stay alert for future support schemes.
People on Working Tax Credit or Child Tax Credit are also included in the eligibility list for this payment.
