Free cash you can get on Universal Credit before Christmas – and you don’t have to pay it back

IF you claim Universal Credit you could get extra help worth up to £8,017.22 this December.

And with Christmas just around the corner, energy bills rising and inflation increasing, there’s never been a better time to make sure that you’re getting everything you’re entitled to.

Whether it’s claiming all the benefits you qualify for, taking advantage of social tariffs which can save you hundreds of pounds, or even looking at the wide range of support for families with children, every little helps with getting you through the winter months.

To make life easier, we’ve rounded up all the extra help that’s available for people on Universal Credit.

Household Support Fund – up to £500

The Household Support Fund is designed to help people on low income households in need.

The government has made £421million available to council councils and unitary authorities in England to help with the cost of essentials.

Each council has different rules about who is eligible, what help will be given and the maximum amount you can get.

The highest payment we could find was Camden, which offers payments of up to £500.

Other councils offer anything from food vouchers to school meals for kids in the holidays.

Contact your local authority to find out what’s available.

Council Tax discount – up to £1628.25

If you’re on a low income, you might be able to get a council tax reduction, including if you receive Universal Credit.

How much will be deducted depends on your total income (including some benefits), whether you’re single or in a couple, if you or anyone living with you is disabled and whether or not you have children.

Typically, reductions for working age people go up to 75% but it is possible to have the bill cancelled in some cases if you’re in severe financial hardship.

A 75% reduction on a Band D home with average council tax payments would save you £1,628.25.

Energy bill grants – up to £1,700

Lots of suppliers offer energy grants for people who are struggling to pay their bills.

The main ones to consider are:

• British Gas Energy Trust
• Scottish Power Hardship Fund
• Ovo Energy Fund
• EON Energy Fund
• EON Next Energy Fund
• EDF Energy Customer Support Fund
• Octopus Octo Assist Fund
• Boost Power Energy Bills Support Fund
• Shell Energy
• SSE
• Utilitia

How much you can get depends on your provider, but the British Gas Energy Fund says it will clear debts of up to £1,700.

Discretionary Housing Payment – £518 on average

Discretionary Housing Payments (DHPs) provide financial support to help with rent or housing costs.

You can apply if you currently get either housing benefit or the
housing element of Universal Credit.

You may get a DHP to cover housing costs for:

• a rent shortfall
• rent deposits
• rent in advance if you need to move home

How much you will get depends on your financial situation and the rules set by your local council.

The average DHP award at the beginning of 2024 was £518, according to local authorities’ data.

Welfare assistance scheme

Local Welfare Assistance provides emergency financial support to help people on low incomes.

It’s delivered by individual councils and you usually need to be on
certain benefits to get the help, often including Universal Credit.

It’s impossible to say what you will receive, because it depends on your circumstances and your council’s rules.

Some councils will have different amounts for different types of need, for instance Merton Council typically pays up to £500 for
essential household items, but has separate rules for emergency payments.

Free childcare – up to £1,739.37 a month

If you’re on Universal Credit you can claim up to 85% of your childcare costs back, up to a certain limit.

This can be used for things like nursery, but also approved after
school and holiday clubs.

The maximum you can claim per month is:

• £1,014.63 for one child
• £1,739.37 for two or more children

Flexible support fund – £150 for training

This fund is designed to help Universal Credit claimants with job-related expenses and can cover things such as childcare, travel, and work clothing or uniforms.

You can get up to £150 to cover training, and the amounts for other needs are discretionary.

There’s no maximum limit, and you need to apply through your JobCentre.

Help to Save – £25 in December

This scheme is designed to help people on Universal Credit build up their savings.

You get a 50% bonus on everything you save into the account, up to a maximum of £300 a year.

This is capped to £50 each month, so for December you’d earn £25.

If you saved the maximum over the four years you can use the scheme you’d have a bonus of £1,200 at the end.

DWP Christmas Bonus

DWP pays anyone on Universal Credit a Christmas bonus worth £10.

The money should appear in your account automatically at some point in December.

School uniform grants – up to £200

You can get up to £200 towards the cost of your child’s school uniform through a grant from your council.

In some local authorities, it you might automatically qualify if you’re on certain benefits including Universal Credit, but others have stricter requirements.

Parents in Wales get £200, while amounts in England vary from £25 in Sandwell to £170 in Wandsworth.

Some councils don’t offer grants at all, so check your local authority website to see what’s available.

Healthy Start – £42.50

If you’re more than ten weeks pregnant or have a child under 4, you may be entitled to get help to buy healthy food and milk.

You can use your card to buy:

• plain liquid cow’s milk
• fresh, frozen, and tinned fruit and vegetables
• fresh, dried, and tinned pulses
• infant formula milk based on cow’s milk

You can also use your card to collect:

• Healthy Start vitamins – these support you during pregnancy and breastfeeding
• vitamin drops for babies and young children – these are suitable from birth to four years old.

You get £4.25 each week of your pregnancy from the tenth week, £8.50 each week until your child is one, and £4.25 when they are aged between one and four years old.

For December that adds up to a maximum of £42.50.

To qualify, your household’s take-home pay from earned income must be less than £408 a month.

Warm Homes Discount scheme

This is a £150 reduction in your energy bills, which is paid directly to your supplier.

If you get Universal Credit, this should count as a qualifying benefit, but some suppliers aren’t signed up to the scheme so you might have to switch to get the discount.

Free prescriptions, dental treatment and eye exams – save up to £319.10 on dental treatment.

If you get Universal Credit, you may qualify for free NHS prescriptions, dental care and eye tests.

If you are single, your take-home pay needs to be £435 or less each month.

If you receive the child element of Universal Credit, or if you have limited ability to work, this amount increases to £935 or less.

How much you save will depend on how many prescriptions you need each year and what other dental, eye, or health treatments you use.

However, an annual prescription certificate is £114.50, so you could expect to save up to £9.54 in December alone on prescription costs.

An eye test in the UK typically costs around £20-£25, while dentistry on the NHS will set you back between £26.80 and £319.10 depending on what needs doing.

Cheap broadband – £5 – £15 a month

Most broadband suppliers offer a social tariff for people on low incomes.

It’s worth shopping around as the deals can vary from £14.99 a month to £20 a month with an up front fee.

Help paying water bills

Every water company has a social tariff scheme to help reduce your bills if you’re on a low income.

Who is eligible for help and the level of support varies depending on
your water company.

You can see all the providers’ schemes on the CCW website, but Bournemouth Water offers up to 85% depending on need, while Affinity Water caps bills at £79.70 for customers that receive council tax support.

Help with funeral costs – up to £1,000

People on Universal Credit can get help with funeral fees for a partner, stillborn baby, or child under 16 (or under 20 if they’re still in approved education).

Funeral Expenses Payment can help pay for some of the costs of:

• burial fees
• cremation fees
• travel to arrange or go to the funeral
• the cost of moving the body within the UK, if it’s being moved more than 50 miles
• death certificates or other documents

You can also get up to £1,000 for any other funeral expenses, such as funeral director’s fees, flowers or the coffin.

How much you get depends on your circumstances and typically won’t cover the full costs.

You might able to claim for the funeral of a close relative or friend if they didn’t have a partner or living parent would could claim.

Maternity Grant – £500

If you’re pregnant with your first child and receive Universal Credit you can get a maternity grant worth £500.

You can claim from 11 weeks before the week your baby is due.

The latest you can claim is 6 months after your baby is born.

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