Universal Credit can be worth far more than its monthly payments
People receiving Universal Credit might not always recognise the full range of benefits it provides, beyond the monthly DWP payments. Proving eligibility for this benefit can unlock a host of savings, discounts, freebies and access to certain financial support schemes exclusive to Universal Credit claimants.
According to Birmingham Live, these perks could amount to annual savings of up to £10,250. However, some of these benefits and freebies have additional eligibility criteria on top of the Universal Credit requirements, meaning they will not be accessible to everyone.
Social tariffs
Social tariffs are offered on broadband and mobile contracts. Being a Universal Credit recipient is often a prerequisite for these tariffs, which are significantly discounted to make broadband and mobile services more affordable, potentially saving around £170 and £200 per year respectively.
It is important to distinguish social tariffs from short-term promotions that may also offer discounted rates. The key difference is that promotions typically have an expiry date, after which prices revert to standard rates.
Council Tax Support
Eligibility for this support can vary between councils, but generally, individuals on a low income, those claiming state benefits or with savings under £16,000 could qualify for a discounted Council Tax rate. Furthermore, if you live alone or with a disabled person, this discount could be increased.
The amount you save will depend on your council tax rate, which is determined by your local authority and the type of property you inhabit. For some, this could result in annual savings of thousands of pounds.
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Energy bills
In addition to potentially qualifying for social tariffs, individuals on Universal Credit who are struggling to pay their energy bills might be eligible for the British Gas Energy Support Fund. This fund provides grants of up to £2,000 to help make ends meet.
Household Support Fund
The Household Support Fund has been extended until March 2026. Local councils determine how it’s distributed, but the government intends the £742 million to assist the most vulnerable in society.
Many councils have used benefit entitlement as an eligibility criterion to ensure the funds reach those who need them most. This means you could qualify by claiming certain benefits or earning specific amounts.
Sure Start Maternity Grant
New and expectant parents on Universal Credit can receive a one-off £500 payment to assist with the additional costs of having a child. This is available through the Sure Start Maternity Grant.
Childcare Support
The maximum amount that individuals on Universal Credit can claim back for childcare expenses increased this month. It now stands at £1,031.88 for one child, and £1,768.94 for two or more children.
Free School Meals
Families on Universal Credit may be eligible for free school meals for their school-aged children. This benefit is worth approximately £460 per child per year and during school holidays families could also receive up to £15 per week.
WaterSure Scheme
The WaterSure scheme provides substantial savings for large families or those with medical needs who are on Universal Credit. The scheme varies between suppliers, with Anglian Water currently offering a rate of £310 annually compared to the average projected bill of £626.
Free NHS Prescriptions
Individuals on Universal Credit receiving certain prescriptions can get their medication for free. The specific benefits and conditions that qualify for free prescriptions are detailed on the NHS Business Services Authority website.
Jobcentre Plus Travel Discount
This discount card offers people seeking employment up to 50% off on rail travel. It can typically be used for journeys to interviews, the Jobcentre or training.
Help to Save Scheme
This scheme is essentially a savings account with a 50% interest rate that’s only available to Universal Credit claimants. People can put up to £50 into the account each month and after two years they can receive a 50% bonus, which they receive again after four years.
You can make withdrawals from this account without affecting your eligibility for this bonus rate. Each bonus can be worth a maximum of £1,200.
Healthy Start Scheme
Families in England and Wales on Universal Credit may also be eligible for the Healthy Start Scheme. It offers vouchers for healthy foods and supplements to pregnant women and families with young children who are on a low income and getting a qualifying benefit.
Discounted Gym Memberships
Some gyms will offer discounted memberships for people who can prove they are on a low income, which is simple to do when you receive Universal Credit. Some gyms offer hundreds off their annual memberships on these discounted rates.
