Free £120 Cost of Living Payments Start for UK Households
Free £120 Cost of Living Payments Start Monday

Thousands of households in one part of the UK are set to receive a welcome financial boost, with free £120 payments starting to arrive from Monday.

Automatic Support for Eligible Families

The initiative is part of the Department for Work and Pensions (DWP) Household Support Fund, administered locally by Stockton-on-Tees Borough Council. The council has confirmed that hard-up families will begin receiving £120 in free cash within days.

For many residents, the process will be automatic. All households that currently receive a council tax reduction do not need to take any action to receive this support. The help comes at a critical time as many continue to feel the pressure from the ongoing cost of living crisis.

Voucher Distribution and Redemption Details

The support will be delivered in two distinct phases. For the general scheme, eligible residents in Stockton-on-Tees will receive two £60 vouchers delivered directly to their homes during the last two weeks of November.

These vouchers can be exchanged for cash at any PayPoint outlet. Recipients must be aware that the vouchers have an expiry date and must be exchanged by the end of February 2026.

A second phase of the programme is scheduled for the new year. In the first two weeks of January, two further £60 vouchers will be distributed to approximately 6,000 households with pensioners who are in receipt of Council Tax Reduction.

Discretionary Payments for Wider Support

Recognising that financial hardship extends beyond those receiving council tax support, the scheme also includes a discretionary element. Discretionary payments of £120 are available for residents on a low income who pay energy bills but do not receive Council Tax Reduction.

Councillor Paul Rowling, Deputy Leader of Stockton-on-Tees Borough Council and Cabinet Member for Resources and Transport, emphasised the importance of the fund. He stated: "The Household Support Fund has been vital for families around our Borough for a number of years now, so we're delighted to again offer vouchers for thousands of eligible households this winter."

He added a clear reminder for residents: "Don't forget if you receive Council Tax Reduction then there's nothing you need to do, with vouchers sent automatically. And of course, if you do not receive Council Tax Reduction then you may still be eligible for support by applying for a discretionary payment."

Residents who believe they may qualify for this discretionary support to help with energy costs can check their eligibility and apply through the online application process on the council's Household Support Fund webpage. The council also encourages anyone needing further assistance to visit its 'Here to Help' hub for comprehensive information on benefits, advice, and available support.