Millions of people in the UK claiming Universal Credit are entitled to a range of financial support and discounts, potentially totalling £646 in July alone. These benefits are designed to ease the financial burden of low-income households, from help with council tax to energy bills and health-related costs.
As part of the government’s ongoing welfare reforms, Universal Credit aims to provide a safety net for those with low or no income. This includes individuals who may be working full-time but struggling to make ends meet.
However, it also offers a variety of discounts and support that many may not be aware of. For July 2025, the cumulative value of these benefits amounts to an impressive £646.10. While this total is accessible to many, it varies depending on personal circumstances, including income and household composition.
Council Tax and Household Support Fund: Key Financial Relief
According to recent figures, Universal Credit claimants can qualify for up to 75% off their council tax. This could translate into savings of up to £1,710 per year, depending on the value of the property and local tax rates.
In the 2025-26 financial year, the average council tax bill for a Band D property in England is estimated at £2,280. A 75% discount would reduce this to £570 annually, or approximately £171 per month, significantly easing the financial pressure for low-income households.
Additionally, the Household Support Fund, introduced in 2025, offers a one-time cash payment of £300. The fund is distributed by local councils, with each determining how the money is allocated.
The form of this support can vary, from food vouchers to direct cash payments or energy bill credits. While not all Universal Credit claimants are guaranteed access to this fund, some councils prioritise those receiving Universal Credit, meaning the scheme can provide substantial aid to eligible individuals.
Energy Bill Discounts: Vital Support Amid Rising Costs
Energy bills continue to rise across the UK, and for those on Universal Credit, there are schemes available to help ease the burden.
According to various energy providers such as British Gas and Octopus Energy, people claiming Universal Credit may be eligible for debt forgiveness programs that can wipe off up to £2,000 of energy-related debt. These schemes are designed for individuals who are struggling to pay their energy bills or who have built up significant arrears.
For instance, the British Gas Energy Support Fund offers support to clear arrears on gas and electricity bills, provided claimants meet certain criteria, such as receiving advice from a money advice agency. This type of support can be invaluable, especially for vulnerable individuals facing financial hardship due to rising living costs.
Overall, the total value of these various benefits and discounts for a Universal Credit claimant can amount to £4,028 annually, or £546 per month. With the cost of living continuing to be a challenge for many, these benefits provide a vital safety net, helping recipients manage essential living expenses.