£120 Weekly Support Confirmed for UK Workers, Full Eligibility and Claim Process

The UK government has confirmed a new £120 weekly benefit designed to give eligible workers additional financial support. This marks one of the most significant changes to the welfare and employment support system in recent years.

With the cost of living still climbing and many households finding it difficult to balance essential expenses, the new payment aims to ensure that workers – not just the unemployed – have access to a stronger financial safety net.

What Is the £120 Weekly Benefit?

The £120 weekly benefit is a direct government payment created to guarantee that low-income workers have a minimum level of support. Unlike traditional welfare schemes that focused mainly on those out of work, this initiative targets active workers, offering a safety net during periods when wages alone may not cover the essentials.

It represents a modernised approach to welfare – supporting those in employment while helping to reduce in-work poverty.

Why Was the New Benefit Introduced?

Government ministers outlined four main reasons for introducing the £120 benefit:

• Rising living costs – Inflation, rent, and energy bills have left many workers struggling.
• Support for low-income workers – Many individuals are employed but still unable to meet basic living expenses.
• Encouraging employment – By topping up wages, the benefit makes staying in work more financially viable.
• Simplifying support – The weekly payment replaces several smaller allowances, creating a clearer system.

Who Is Eligible for the £120 Weekly Support?

Eligibility is determined by a mix of factors, including:

• Income: Workers earning below a set threshold.
• Employment status: Both full-time and part-time workers can qualify.
• Age: Applicants must be over 18 but below state pension age.
• Residency: Claimants must live and work in the UK.
• National Insurance: Workers must have paid or been credited with contributions.

This inclusive design ensures the benefit reaches both traditional employees and those in non-standard or flexible jobs.

How the £120 Weekly Benefit Works

• Payments are made weekly, directly into recipients’ bank accounts.
• The amount may be adjusted based on earnings, ensuring fairness across claimants.
• It can be received alongside Universal Credit, Housing Benefit, and other entitlements.
• The Department for Work and Pensions (DWP) issues a confirmation notice once a claim is approved.

This setup creates consistency and stability, making it easier for workers to plan budgets.

New Rules Introduced in 2025

The government has also confirmed a set of new rules attached to the scheme:

• Earnings cap: Workers must remain under income limits to stay eligible.
• Reporting requirements: Claimants must regularly update work and income details.
• Integration with Universal Credit: For some households, the payment will form part of their Universal Credit assessment.
• Regular reviews: DWP will review claims to ensure continued eligibility.

These changes are designed to prevent misuse and ensure the benefit reaches those who need it most.

Payment Dates and Schedules

• Payments will follow the standard DWP weekly schedule.
• If a scheduled date falls on a bank holiday, payments may arrive earlier.
• Claimants can track payments via their online DWP accounts.

This mirrors the structure of other government support schemes, making it familiar for those already in the welfare system.

Impact on UK Workers

The £120 weekly benefit is expected to bring several positive outcomes:

• Greater financial security for low-paid workers.
• Reduced in-work poverty.
• Increased flexibility for part-time and irregular workers.
• Extra help for families juggling childcare or caring responsibilities.

By focusing on working households, the scheme fills a gap in the UK’s welfare system.

Interaction with Other Benefits

Many workers worry about how the new support interacts with existing benefits. Here’s what to expect:

• Universal Credit: For some, the payment will be integrated within their Universal Credit assessment.
• Housing Benefit: Will not be reduced directly, though total household income will be considered.
• Tax Credits: Legacy benefit claimants may see adjustments depending on individual cases.

Importantly, the £120 weekly payment is not taxable, ensuring recipients keep every penny.

How to Apply for the £120 Weekly Benefit

The application process is straightforward:

• Log in or create a DWP online account.
• Submit proof of employment and earnings.
• Provide bank details for direct payment.
• Complete identity verification checks.

Once approved, payments will begin automatically.

Common Mistakes to Avoid When Applying

• Failing to update income details when earnings change.
• Not reporting changes in working hours, which may affect eligibility.
• Assuming automatic entitlement without checking the rules.
• Missing claim deadlines, which may delay or prevent payments.

Avoiding these errors ensures a smoother application process and timely access to funds.

Worker Case Studies

• Case 1: A part-time supermarket employee now uses the £120 benefit to help cover transport and utility bills.
• Case 2: A self-employed tradesman relies on the benefit during quiet work weeks, helping stabilise income.
• Case 3: A single parent combines the new benefit with Universal Credit, making childcare more affordable.

These examples show how the scheme is flexible enough to meet diverse needs.

Long-Term Implications of the Scheme

Experts suggest the £120 benefit could reshape UK welfare policy by:

• Shifting focus from unemployment support to in-work support.
• Increasing reliance on digital claim systems.
• Creating stronger safety nets against economic shocks such as recessions or cost-of-living crises.

Criticism and Debate

Not everyone supports the scheme. Critics argue:

• Employers may use the benefit as an excuse to suppress wage growth.
• Integration with Universal Credit could create complexity for claimants.
• Some pensioner groups question why similar top-ups are not extended to retirees.

The government has promised to monitor the scheme closely to address concerns.

Preparing for the Change

Workers are advised to prepare ahead of time:

• Check eligibility using the official government calculator.
• Review income records with HMRC/DWP.
• Update any outdated personal details.
• Seek advice from Citizens Advice or other support groups if uncertain.

Preparation will ensure smoother access to the new benefit once it goes live.

FAQs

Q1: Do I need to reapply for the £120 weekly benefit each year?
No. However, regular reviews will be conducted by the DWP to confirm ongoing eligibility.

Q2: Can self-employed workers qualify for the benefit?
Yes. Self-employed workers can claim if their income falls below the threshold.

Q3: Will the £120 weekly payment affect my tax bill?
No. The payment is not taxable income, so recipients keep the full amount.

Q4: Can I claim this benefit if I already get Universal Credit?
Yes. The benefit may be integrated into your Universal Credit assessment depending on your circumstances.

Q5: What happens if my income goes above the threshold?
If your earnings rise, the DWP may adjust or stop your payments following a review.