UK Government Launches £120 Weekly Support Payment – Full Eligibility and Rules Explained

The UK government has confirmed the rollout of a new £120 weekly benefit for eligible workers, designed to provide extra financial stability amid rising living costs. The policy, set to launch in 2025, represents one of the most significant welfare reforms in years and forms part of a wider effort to support low-income earners and working families.

With food, rent, and energy prices continuing to climb, the new payment aims to bridge the gap between wages and essential living costs, ensuring workers can maintain financial security without relying on debt or emergency loans.

What Is the £120 Weekly Benefit?

The £120 weekly benefit is a new government-funded payment for qualifying workers, offering a consistent level of financial support alongside existing income.

Unlike traditional unemployment benefits, this initiative targets active workers — both full-time and part-time — whose wages fall below a specific income threshold. It serves as a financial safety net for those in employment but still struggling to meet essential expenses.

According to the Department for Work and Pensions (DWP), the scheme “recognises the reality that work alone does not always guarantee financial stability.”

Why the Government Introduced the New Benefit

The £120 weekly benefit was created in response to growing concerns over in-work poverty and the rising cost of living. Government officials cited four main reasons for introducing the payment:

• Rising Costs: Inflation and high energy bills continue to squeeze household budgets, particularly for lower-income families.
• Support for Working Families: Many employed people rely on food banks or debt just to cover essentials.
• Encouraging Employment: The scheme makes work more financially rewarding, discouraging dependency on unemployment benefits.
• Simplified Support: It replaces multiple smaller payments with a single, straightforward system that’s easier to manage and access.

Economists say this shift reflects a growing government focus on “supporting work over welfare”, while still ensuring no working household falls below the basic cost-of-living threshold.

Who Is Eligible for the £120 Weekly Benefit?

Eligibility depends on several key factors. To qualify, applicants must:

• Be aged 18 or above and below State Pension age.
• Be living and working in the UK.
• Be in employment or self-employment, earning below a defined income limit.
• Have made or be credited with National Insurance contributions.

The payment is available to both full-time and part-time workers, with income thresholds set to ensure the support targets those who need it most.

It can also be received alongside Universal Credit or Housing Benefit, depending on individual circumstances.

How the Benefit Works

The £120 weekly benefit will be paid directly into recipients’ bank accounts, similar to other DWP payments. Key features include:

• Weekly Payments: Deposited automatically each week.
• Adjustable Amounts: Payment levels may vary slightly based on income fluctuations.
• Compatibility with Other Benefits: Can work in tandem with Universal Credit or Working Tax Credit.
• Digital Management: Recipients can track payments through their online DWP account.

Claimants will also receive a notification letter or online confirmation once their eligibility is approved.

New Rules and Requirements for 2025

The 2025 benefit rollout includes updated rules to maintain fairness and transparency:

• Earnings Cap: Recipients must remain below the annual income threshold.
• Regular Reviews: DWP will conduct periodic reviews to confirm continued eligibility.
• Reporting Changes: Any increase in income, job changes, or additional hours worked must be reported promptly.
• Integration with Universal Credit: In some cases, the benefit will be merged with Universal Credit assessments to simplify payments.

Failure to report changes could result in suspension or repayment of benefits.

Payment Dates and How to Receive It

Payments will follow a weekly schedule, typically issued every Friday.

• If the payment date falls on a bank holiday, funds may arrive earlier.
• Claimants can check their next payment date via the DWP online portal.
• Those without digital access can receive updates through postal letters or the DWP helpline.

The government expects the first payments to begin rolling out by mid-2025.

Impact on Workers and Households

The new benefit is expected to make a tangible difference for millions of UK workers, particularly those in lower-paid or part-time roles. The £120 weekly payment is designed to:

• Reduce financial pressure on working households.
• Encourage employment by rewarding work participation.
• Support families balancing work, childcare, and care responsibilities.
• Boost local economies as additional income circulates within communities.

Experts say the scheme could help reduce poverty levels and provide greater income stability, especially for workers in retail, care, hospitality, and self-employed trades.

Interaction with Other Benefits

The DWP has confirmed that the £120 weekly benefit will complement rather than replace other forms of support:

• Universal Credit: May be integrated or used as an additional top-up.
• Housing Benefit: Not directly reduced, but total income will still be assessed.
• Tax Credits: Legacy benefit claimants may see adjustments to avoid double payments.

Claimants are encouraged to review their entitlement calculators on GOV.UK to understand how this benefit interacts with their current support.

How to Apply

Applying for the £120 weekly benefit will be simple and primarily online:

• Create or log in to your DWP account via GOV.UK.
• Submit employment details, including employer information and proof of income.
• Provide bank account information for direct payments.
• Complete identity verification using approved documents.

Applicants will receive confirmation of their eligibility within 10 to 15 working days.

Common Mistakes to Avoid

To prevent delays or rejections, workers should avoid these frequent errors:

• Failing to update income or work hours.
• Assuming automatic entitlement without applying.
• Providing incorrect bank or employer information.
• Ignoring DWP review requests or failing to submit supporting evidence.

Being accurate and proactive helps ensure uninterrupted payments.

Long-Term Significance of the £120 Weekly Benefit

Experts believe this benefit marks a turning point in welfare policy, shifting the focus toward in-work financial security rather than unemployment assistance.

The scheme could help reduce dependency on credit cards, payday loans, and food banks, while also strengthening the link between work and stability.

However, some critics argue the amount may not fully offset the impact of inflation or regional cost variations. Calls for annual uprating and inclusion of self-employed support thresholds are expected in future reviews.

Preparing for the Change

Workers should take action now to prepare:

• Use online eligibility calculators to check qualification.
• Keep income and employment details updated with HMRC and DWP.
• Plan household budgets around potential new income.
• Seek guidance from Citizens Advice, MoneyHelper, or local job centres if uncertain.

Early preparation ensures that eligible workers can benefit as soon as the scheme launches.

Frequently Asked Questions (FAQs)

1. Who can get the £120 weekly benefit?
Workers aged 18 or above who earn below a specific income threshold and live in the UK.

2. Is this benefit only for full-time workers?
No. Both part-time and full-time employees may qualify, as long as they meet income and residency requirements.

3. Can I get this benefit with Universal Credit?
Yes. The benefit can be combined with Universal Credit or other payments depending on your circumstances.

4. When will payments begin?
Payments are expected to start from mid-2025, following rollout by the DWP.

5. How do I apply?
Applications can be made through your DWP online account with proof of earnings and identity documents.