£128 Monthly Household Cost Increase in June 2025 for UK Residents – Are You Eligible to Get It? ;As the cost of living continues to rise in the UK, June 2025 brings another financial update affecting millions of households. A reported £128 monthly household cost increase has been confirmed, impacting everything from energy bills to food and transportation. While this change may seem discouraging, the government has also announced targeted financial relief for certain groups.
This article explains what the £128 increase entails, who will be affected, and most importantly—who may be eligible for support or compensation.
What Is the £128 Monthly Household Cost Increase?
The £128 figure represents an average increase in essential household expenses calculated by the Office for National Statistics (ONS) for June 2025. This increase is not a direct tax or fee, but rather a cumulative rise in living costs that families are now facing due to inflation and adjustments to regulated price caps.
What’s Driving the Increase?
The rise in household costs is attributed to several factors:
| Category | Estimated Monthly Increase | Reason for Cost Rise |
|---|---|---|
| Energy Bills | £38 | End of energy price cap freeze; market-driven rates |
| Grocery Costs | £26 | Global supply chain disruptions and higher import fees |
| Transportation | £22 | Rising fuel prices and fare adjustments |
| Council Tax & Rent | £24 | Annual reassessment in line with inflation |
| Broadband & Utilities | £18 | Contract renewals and service upgrades |
These increases may vary depending on household size, location, and usage, but the national average increase is £128 per month.
Are You Eligible for Financial Support?
The UK government and local councils have announced several support schemes to help households cope with this cost increase. These are means-tested and target lower- and middle-income groups.
Eligibility Criteria for Relief:
| Support Scheme | Eligibility Requirements | Monthly Support Amount |
|---|---|---|
| Cost of Living Support Payment | Receiving Universal Credit, Pension Credit, or Tax Credits | Up to £76 |
| Local Council Tax Rebate | Low-income households in Band A–D properties | £25–£40 |
| Winter Fuel Discount Extension | Pensioners and people on disability-related benefits | Up to £60 |
| Energy Efficiency Grant (ECO4) | Households earning below £31,000 annually with poor EPC rating | One-off home upgrade |
Note: You may be eligible for more than one scheme. Use the Gov.uk Benefits Checker to confirm your status.
How to Apply for Relief or Rebates
Most government-issued payments, like the Cost of Living Support Payment, are automatically disbursed to those on qualifying benefits.
However, for council rebates or energy grants, you may need to apply directly through your local authority or utility provider. Applications typically require:
- Proof of income
- National Insurance number
- Council Tax reference
- Recent utility bills
Keep in mind that application deadlines may vary across regions.
Practical Tips to Manage the Increase
Even with financial support, many households will need to adjust their budgets. Consider the following strategies:
- Switch energy providers or negotiate better rates
- Bulk-buy non-perishables when discounts are available
- Use budgeting apps to track weekly and monthly spending
- Apply for free energy-saving home improvements if eligible
- Contact local charities for emergency food or heating aid
FAQs
❓ Is the £128 cost increase a government fee?
No. This is an average cost estimate, not a new tax or charge. It reflects the overall rise in essential household expenses in June 2025.
❓ Will every household experience a £128 increase?
Not exactly. The actual increase will vary depending on your location, energy usage, and lifestyle. Some may see a higher or lower increase.
❓ Am I eligible if I’m working full time?
Possibly. Some support schemes cover low-to-middle income earners, especially those with children or high housing costs. Use the Benefits Calculator at gov.uk to check.
❓ Can I appeal a denied support application?
Yes. If you’re denied a payment or rebate, you can request a mandatory reconsideration or appeal through your local council or DWP service.
❓ Are pensioners affected by the increase?
Yes. Pensioners are particularly vulnerable to energy and food price increases, but they are also covered by Winter Fuel Payments, Pension Credit, and additional support schemes.
Final Thoughts
The £128 monthly household cost increase in June 2025 is another reminder of the financial pressures facing UK residents. However, with multiple relief schemes available, households are not without support. It’s essential to check your eligibility, apply early, and make necessary budget adjustments to stay ahead.
For official advice or to submit applications, visit gov.uk or contact your local council.