Up to 16 financial benefits and discounts are available this month to people on Universal Credit, potentially saving eligible households more than £12,000 a year. These schemes include energy bill reductions, childcare support, and even help with funeral costs, offering wide-ranging relief amid the ongoing cost-of-living pressures.
With the number of Universal Credit recipients reaching a record eight million, these government-backed and council-led schemes represent a significant lifeline for low-income families. Many of the benefits are not automatically applied, meaning eligible claimants must actively seek them out.
Practical Support for Essentials and Household Bills
According to official figures published by the Department for Work and Pensions (DWP), the increase in Universal Credit claimants reflects the financial pressures faced by households across the UK. To mitigate this, a series of targeted schemes are available to claimants, beginning with the Household Support Fund, offering up to £500 in emergency aid. The scheme runs until March 2026 and is distributed through local councils based on individual needs.
To help with rising energy costs, the Warm Home Discount provides a £150 reduction on electricity bills between October and March, automatically applied by energy providers. On top of this, Cold Weather Payments worth £25 per week are triggered when temperatures fall to zero degrees Celsius for seven consecutive days between November and March, available to those on specific benefits including Universal Credit.
Energy debt grants are also on offer, with British Gas Energy Trust offering up to £1,500, regardless of whether the applicant is a customer. Similarly, E.ON Next supports struggling households with white goods and essential costs. The Energy Company Obligation (ECO) and Great British Insulation Scheme (GBIS) further assist low-income or social housing residents in improving home energy efficiency, offering upgrades such as free insulation or boiler replacements.
Water bills can also be reduced through social tariffs and schemes like WaterSure, with some suppliers capping or halving bills for eligible customers. Meanwhile, council tax reductions could save households up to £2,280 annually, depending on local council policies. In some areas, full exemption is available.
Targeted Benefits for Families, Children and Health
For families, the Child Benefit remains one of the largest sources of ongoing support. According to HMRC, it provides up to £2,251.60 annually, although a tax charge applies for earners above £60,000. Meanwhile, childcare costs can be reimbursed up to 85% through Universal Credit, with a cap of £1,031.88 per month for one child and £1,768.94 for two or more.
The Sure Start Maternity Grant offers a £500 one-off payment for first-time parents or those expecting twins under certain conditions. Additionally, the Healthy Start scheme provides prepaid cards worth up to £442 annually for expectant mothers and parents with children under four, helping to purchase fruit, milk and formula.
Low-income savers can benefit from the Help to Save scheme, offering a 50% government bonus worth up to £300 a year. Families struggling with bereavement can apply for up to £1,000 in funeral support, covering expenses like flowers, transport and funeral director’s fees.
Universal Credit claimants are also entitled to free eye tests and can receive vouchers up to £233 for prescription glasses or lenses. Discounted or free days out are available through schemes at venues such as London Zoo, Tyneside Cinema, and Castle Howard, helping reduce the cost of leisure activities.
Eligible households can cut their broadband and mobile costs through social tariffs, potentially saving £196 annually, with providers like BT, Virgin Media and Voxi offering dedicated low-cost packages. While the total estimated value of these benefits may exceed £12,300 annually, most schemes require individual application or council approval. Claimants are advised to contact their local authority or visit GOV.UK to explore full eligibility and apply promptly.
