Nicki
In a strategic move to support working households amid persistent inflation, the Department for Work and Pensions (DWP) has announced a new £175 Cost of Living (COL) Payment.
This one-off financial boost, scheduled for June 2025, will be distributed to eligible working families receiving certain government benefits.
As everyday costs remain high, this targeted support helps bridge the gap for families managing both employment and rising household expenses.
What Is the £175 Cost of Living Payment UK?
The £175 COL Payment is part of the UK government’s 2025 welfare strategy, offering extra relief to working families most affected by the ongoing cost-of-living crisis.
Unlike earlier schemes, this payout specifically supports those who may not qualify for traditional low-income aid but still face financial pressure.
This direct payment will require no application and will be automatically deposited into the accounts of qualified beneficiaries.
DWP Working Family Support Scheme – How It Works
The payment is aimed at households already receiving:
- Universal Credit
- Working Tax Credit
- Child Tax Credit
- Other qualifying income-related support
The DWP will assess eligibility based on current records, ensuring a seamless and automatic payment process.
Payment Schedule Comparison
| Payment Date | Amount | Eligible Group |
|---|---|---|
| June 2025 | £175 | Working families on Universal Credit & WTC |
| October 2024 | £150 | Low-income households |
| April 2024 | £300 | Pensioners and disability claimants |
This table shows that the June 2025 £175 payment is uniquely focused on working families, aligning with the government’s evolving goal to support the economically active population.
Eligibility Criteria for the £175 COL Payment
To qualify for the £175 cost of living payment, families must meet the following:
- Be UK residents
- Receive Universal Credit, Working Tax Credit, or equivalent support
- Have an active benefit claim for at least part of May or June 2025
No separate registration is needed—just ensure your DWP records and bank details are current to avoid payment delays.
When and How Will Payments Be Made?
Payments are expected to begin mid-June 2025 and continue through the end of the month. The DWP will issue the funds directly to eligible accounts through the usual payment channels.
If your circumstances have changed recently—such as employment status, income level, or family size—it’s crucial to update your details on the DWP portal or contact your local Jobcentre Plus office.
Why This Payment Matters in 2025
The cost of essentials—including food, rent, transport, and childcare—has surged in recent years. While high earners may cope, working families with modest incomes often fall through the cracks of traditional welfare schemes.
This £175 payment offers:
- Immediate cash relief without red tape
- Recognition of the economic pressures faced by working households
- Policy inclusiveness, ensuring help goes beyond low-income or pensioner groups
It also complements upcoming changes to Universal Credit and Tax Credits, which are being reviewed every six months to better reflect real-world costs.
The £175 cost of living payment for working families in the UK is a timely financial lifeline during economic uncertainty.
With no application required, automatic distribution, and a clear focus on supporting employed households, this initiative reflects the government’s commitment to easing financial burdens in mid-2025 and beyond.
FAQs
Do I need to apply for the £175 COL Payment?
No. If you’re receiving qualifying benefits like Universal Credit or Working Tax Credit, the payment will be made automatically.
When will I receive the payment?
The DWP will start disbursing payments from mid-June 2025, continuing through the end of the month.
What if my income has changed recently?
Ensure your details are up to date with the DWP to remain eligible. Use the online portal or contact Jobcentre Plus.