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In response to the escalating cost of living, the UK government, through the Department for Work and Pensions (DWP), is launching a £175 cost of living (COL) payment.
Set to roll out in June 2025, this initiative is aimed specifically at working families facing financial challenges.
The one-time cash boost aims to provide much-needed relief to those balancing work, childcare, and everyday expenses. Below, we delve into the specifics of this payment, how it works, and who qualifies.
What is the £175 Cost of Living Payment UK?
The £175 COL payment is a one-off financial aid designed for working families in the UK. Unlike previous rounds of cost-of-living support, which were more general, this payment is targeted specifically at households where individuals are juggling work responsibilities and family care.
With inflation continuing to impact daily expenses, this initiative aims to support families struggling to meet their basic needs.
How the DWP Working Family Support Works
The DWP working family support scheme for 2025 has been structured to ensure a seamless distribution process.
Families receiving specific qualifying benefits, such as Universal Credit and Working Tax Credit, will automatically receive the £175 payment.
This means there’s no need for additional applications or paperwork—eligible individuals will have the amount deposited directly into their bank accounts.
Here’s a comparison with other recent initiatives:
| Payment Date | Amount | Eligible Group |
|---|---|---|
| June 2025 | £175 | Working families on qualifying benefits |
| October 2024 | £150 | Low-income households |
| April 2024 | £300 | Pensioners and disability claimants |
This breakdown illustrates the government’s continued efforts to prioritize support for families managing the demands of work and home life.
UK Benefit Update: Key Changes for 2025
In addition to the £175 cost of living payment, there are broader updates to the UK’s benefit system for 2025.
These updates include periodic assessments to review and adjust payment amounts. The government is committed to ensuring that support levels remain aligned with inflation and the changing cost of living.
With a review set for December 2025, families can expect ongoing adjustments to ensure they continue to receive adequate assistance.
The government is shifting towards targeted, data-driven support, rather than blanket solutions. This means future payments, including Universal Credit and Working Tax Credit adjustments, will be more personalized and responsive to actual living costs faced by households.
Who Will Get the £175 Payment and When?
The £175 payment is set to be distributed automatically in June 2025 to individuals meeting the eligibility criteria. If you are already receiving Universal Credit, Working Tax Credit, or other qualifying benefits, you won’t need to take any further action.
The DWP will handle the entire process, and payments will be made directly to eligible families between mid-June and the end of the month.
If you’ve experienced recent changes, such as a job change or a reduction in income, it’s important to update your details with the DWP to ensure you receive the correct payment. The DWP aims to distribute the payment as quickly as possible to provide timely support.
The £175 cost of living payment for working families in June 2025 is a much-needed step in alleviating the financial strain many households are facing.
With direct deposits and automatic eligibility for those receiving benefits, this initiative reflects the government’s commitment to targeted, effective support.
FAQs
Who qualifies for the £175 COL payment?
The £175 payment is available to working families receiving Universal Credit, Working Tax Credit, or similar qualifying benefits. If you meet these criteria, the payment will be made automatically.
When will the £175 payment be made?
The payments are scheduled to start in mid-June 2025 and will continue through the end of the month.
Do I need to apply for the £175 payment?
No, if you’re already receiving qualifying benefits, you don’t need to apply. The DWP will automatically process the payment to eligible families.