People on Universal Credit are getting 17 freebies and discounts worth thousands in January. Benefit payments including Universal Credit and PIP are set to rise by 1.7% from this April because the majority of welfare payments are uprated every year by the previous September level of inflation, which was confirmed to be 1.7%.
Universal Credit is claimed by more than six million people in the UK. Some people are entitled to additional payments on top of their standard allowance – for example, you may receive more money if you have children or a long-term illness.
TUniversal Credit standard allowance – which is the basic amount you get before any additional payments or deductions are accounted for – is likely to rise for single under 25 from £311.68 a month to £316.98 a month, for single 25 or over from £393.45 a month to £400.14 a month and for joint claimants both under 25 from £489.23 a month to £497.55 a month.
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Household Support Fund – up to £500
Eligibility criteria, types of assistance, and maximum payments vary by council. For example, Camden offers up to £500. The former Tory Government extended the scheme until September 2024 in their final Spring Budget and it was unsure whether the new Labour Govenrment would keep the scheme going. However, today it was confirmed it would be extended with an extra £421million being given to local councils.
Chancellor Rachel Reeves said the £22billion blackhole left by Tories meant it had to make “tough decisions” to fix the foundations of the UK economy. She added: “But extending the Household Support Fund is the right thing to do – provide targeted support for those who need it most as we head into the winter months.”
Secretary of State for Work and Pensions, Liz Kendall MP, added: “The dire inheritance we face means more people are living in poverty now than 14 years ago – and this Government is taking immediate action to prevent a cliff edge of support for the most vulnerable in our society. At the same time, we are taking action to fix the foundations of our country through our plans to grow the economy, make work pay, and Get Britain Working again.”
Discretionary Housing Payments (DHPs) – save £518 on average
Discretionary Housing Payments (DHP) can give you short term help to pay your rent when Housing Benefit or Universal Credit does not meet your rent in full. You can apply if you receive Housing Benefit or the housing cost element of Universal Credit or there is a shortfall between your rent and benefit entitlement.
The councils budget for these payments is limited and we have to consider each case by looking at your financial and personal circumstances and whether anyone in your house can help you.
Welfare Assistance schemes – up to £500
This is emergency aid for low-income households, often tied to like Universal Credit.Support varies by council and by the emergency you’re facing. For example, Merton Council offers up to £500 for essentials but has different rules for emergency payments.
Council tax discount – save up to £1628.25
If you’re on a low income or claiming benefits, you could be in line for a reduction on your council tax bill. The discount you’re entitled to is dependent on your local council and their criteria but in some situations, it could be cut by 100%. To apply for a council tax reduction, you will need to go to the government’s website and apply through your local council. Single households are entitled to claim the single-person discount which is 25% regardless of whether they claim benefits.
Energy bill discounts – save up to £1,700
Most energy companies provide grants for people who are having trouble paying their bills. The amount of help you can receive varies depending on your energy provider, but the British Gas Energy Fund offers to pay off debts of up to £1,700, so the amounts are significant.
Warm Homes Discount AND Cold Weather Payments – £150 and £25
The Warm Home Discount is a £150 credit applied to energy bills for eligible households on Universal Credit. For most energy suppliers, you should automatically qualify, but not all energy companies are signed up. Check with yours if you’re not sure.
You could get a £25 discount on your energy bill over the winter through the cold weather payment scheme which is given when temperatures are recorded as, or forecast to be, zero degrees or below, on average, for seven consecutive days between November 1 and March 31.
People do not need to apply for the scheme and should get it automatically if they are claiming certain benefits and you can check if you’re eligible for a payment using the Government’s locator tool.
Cheap broadband – up to £15 a month
A number of broadband providers offer cheap deals for those who claim certain benefits. TalkTalk, Virgin Media and BT offer a “social tariff” which is cheaper than the traditional ones they offer and TalkTalk offers jobseekers free broadband for six months.
Applying for the social tariff is different for each provider but it can usually be done online or over the phone and you will need to provide proof of your benefit claim to be accepted.
Help with water bills
If you live in England, you could get your water bills capped or reduced through the WaterSure scheme. If you live in Wales you can receive help from WaterSure Wales. To qualify for the scheme you need to have a water meter installed in your home and you’ll have to prove you already use a lot of water. You’ll also need to have three or more children under the age of 19 in full-time education, or live with someone with a medical condition that means they use extra water.
Free childcare – save up to £1,739.37
Universal Credit covers up to 85% of childcare costs, capped at £1,014.63 per month for one child and £1,739.37 for two or more. This can be used for any approved childcare, which can include after school or holiday clubs.
School uniform grants – save up to £200
Up to £200 is available through local , though amounts vary depending on where you live.For example, Wandsworth in London offers £170, while Sandwell in the West Midlands caps payments at £25.
Healthy Start scheme AND maternity grant – up to £42.50 and £500 respectively
This gives you cash to help with the cost of buying food and vitamins for children aged under 4. Payments range from £4.25 to £8.50 weekly, depending on the child’s age. In January, you could get up to £42.50. You can get £500 to help towards the costs of having a child and you have no other children in your family. To qualify you must also get one of these benefits:
- Income Support
- income-based Jobseeker’s Allowance
- income-related Employment and Support Allowance
- Pension Credit
- Child Tax Credit at a rate higher than the family element
- Working Tax Credit that includes a disability or severe disability element
NHS prescriptions, dental treatment, and eye exams – £141.30
DWP benefits can make you able to claim your prescription costs for free and you can also get help if you’re on a low income through the NHS low-income scheme. You can check if you’re eligible for this using the Government’s eligibility checker.
The scheme also provides free wigs and fabric support and travel to and from healthcare appointments. How much you’ll be entitled to however does depend on your income and circumstances, including outgoings and the amount of savings you have in the bank.
Some Universal Credit claimants can also have the cost of their dental care covered for them as well as eye tests, you can also claim discount glasses through this too.
Help to Save – worth £25 in January
This scheme offers Universal Credit claiming a 50% bonus on their savings, capped at £300 annually, with up to £1,200 in bonuses over four years . You can only save £50 a month, so the maximum January bonus would be £25.
Flexible Support Fund – save up to £150 on training costs
This help comes through the Flexible Support Fund (FSF) and is available to anyone who receives help from a JobCentre. The extra cash awarded is on top of the other benefits you claim and can be used for things such as childcare, uniforms, or even work tools, so long as they help you get a job. There’s no set amount you can get as it will vary from case to case.
If you’re claiming Universal Credit and looking for work, then you might be able to get 50% off your bus and train fares with the Jobcentre Plus travel card. However, there is no guarantee you’ll get a pass even if you’re on Universal Credit as there are certain criteria which have to be met to be eligible. You can ask your local Jobcentre whether you can get one as staff hand them out on a case-by-case basis. Children whose parents claim Universal Credit could be able to get their transport to school free too. Local councils are responsible for deciding whether someone is eligible so it’s best to contact them to find out if you are.
Funeral Expenses Payment – up to £1,000 plus help with other expenses
You can apply for help to pay for a funeral, if it is reasonable for you or your partner to take responsibility for funeral costs and you are getting any of the following:
- Income Support
- Income-based Jobseeker’s Allowance
- Employment and Support Allowance (income-related)
- Pension Credit
- Housing Benefit
- Council Tax Benefit
- Working Tax Credit where a disability or severe disability element is included in the award
- Child Tax Credit at a rate higher than the family element