HOUSEHOLDS on Universal Credit and benefits could get free cash and discounts to help this December that don’t need to be paid back.
Many people may be struggling to cover the cost of essentials, and Christmas will be adding extra stress to budgets.
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Help for those on Universal Credit and other benefits ranges from council tax discounts to supermarket food vouchers.
Here, we’ve rounded up the 12 payments, discounts and freebies you could get this Christmas worth up to £8,732.
Of course, the exact amount of help you can get varies depending on your personal circumstances.
Here’s everything you need to know…
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Christmas bonus – £10
Millions on Universal Credit and benefits will receive a Christmas bonus from next Monday.
The tax-free £10 payment will be made during the qualifying week between December 4 and 8, according to the DWP.
Eligible households don’t need to apply for the bonus as it will be paid automatically – but they will need to meet the criteria.
And as the £10 is a bonus, it won’t need to be repaid either, nor will it affect any other benefits you receive.
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To qualify for the payment you must be present or ordinarily resident in the UK, Channel Islands, Isle of Man or Gibraltar during the first full week of December, which is from December 4 this year.
Households will also need to claim at least one of the 20 qualifying benefits within the same period.
The bonus isn’t available to those who receive Universal Credit only but someone on Universal Credit who also receives one of the qualifying benefits will receive it.
You can see the full list of qualifying benefits here.
Missing cost of living cash – £599
An estimated 1.4million pensioners are receiving pension credit which makes them eligible for a cost of living payment.
But there are 850,000 more pensioners eligible for the benefit who aren’t claiming it.
It means that they risk missing out on the next two cost of living payments worth £300 and £299.
Households will receive the second instalment of the cost of living payment worth £300 directly into their bank accounts between October 31 and November 19.
While the third instalment will go out in the spring of 2024.
Usually, these payments are made automatically to those eligible for the tax-free payment.
Eligible households have until December 8 to make a claim for pension credit over the phone and until December 10 to make a claim online or they risk losing out on the cost of living payments.
This is provided applicants were of state pension age between 18 August 2023 and September 17, 2023.
It doesn’t matter if you were only eligible for a day – as long as this day was within the qualifying period you’ll get the cost of living payment.
Household Support Fund – £500
The Household Support Fund was first set up in 2021 but has been extended multiple times.
The most recent tranche of funding is worth £842million and has been distributed among councils in England.
They are then allocating their own unique share.
That means what you are entitled to varies depending on where you live, but in most cases you will be in line for help if you are receiving certain benefits or on a low income.
For example, households in Ribble Valley Council have just weeks left to apply for vouchers worth up to £500.
Remember to check if you qualify for benefits too, as they can make you eligible for the Household Support Fund.
Cold weather payment – £25
The cold weather payment is dished out when temperatures are recorded as, or forecast to be, zero degrees or below, on average, for seven consecutive days.
When temperatures drop between November 1 and March 31, eligible Brits are entitled to extra money to heat their homes when this happens.
You get £25 for each seven-day period where the weather is below zero Celsius on average during this time frame.
You can check if your area has had a cold weather payment by popping your postcode into the government’s tool from November 1 onward.
Cold Weather Payments will no longer be made in Scotland as the scheme has been replaced.
Instead you might get an annual £50 Winter Heating Payment. You can find out more about the scheme on the Scottish Government website.
You’re eligible for the cold weather payment scheme if you’re in receipt of one of the following benefits and meet certain criteria:
Depending on your specific circumstances, you may also need to meet one or more of the following additional criteria:
- Have a disability or be in receipt of pension premium
- Have a child who is disabled
- Be in receipt of child tax credit that includes a disability or severe disability element
- Have a severe or enhanced disability premium
- Be in receipt of a limited capability for work amount
- Have a child under five living with you
Regardless of employment, Universal Credit claimants are eligible if they have a disabled child amount in their claim.
You can find out more about eligibility on the government’s website.
Winter fuel payment – up to £600
The winter fuel payment is an annual tax-free benefit designed to help with heating costs through the colder months.
Most people who are eligible get it automatically, like if you receive the state pension or benefits.
However, you won’t necessarily qualify just because you claim housing benefit, council tax reduction, child benefit or Universal Credit.
If you do meet the criteria but don’t automatically get the winter fuel payment, you will have to apply on the government’s website.
The cash boost started being dished out on November 1. and should be complete by the end of December.
If you have not received it by January 26, 2024, you’ll need to contact the Winter Fuel Payment Centre.
You can do this by calling 0800 731 0160.
You’ll qualify for a winter fuel payment if both of the following apply:
- You were born on or before September 25, 1957
- You lived in the UK for at least one day during the week of 18 to 24 September 2023 – this is called the ‘qualifying week’
Council Tax Discounts – £1,470
If you are on a low income or receiving benefits, you could be eligible for some help towards your council tax.
Whether you are eligible will vary depending on where you live.
If you find yourself struggling to pay your bill, you may also be able to get a deferral or speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
However, those on low incomes and living in Leeds can get their council tax bills reduced by up to 75%.
Some might even get their bill reduced to £0.
We have put together a full guide on how to get a discount, including information on who is eligible.
Help to Save – £1,200
Help to Save is a scheme available to those on Universal Credit and offering a 50% bonus on any savings you make.
You can add up to £50 into a Help to Save account every month for up to four years.
So, if you added the maximum amount each month for 48 months, you would end up with a £1,200 bonus.
But you can still get some of the bonus even by saving a small amount – check out how it works.
It comes after HMRC revealed nearly 450,000 people opened a Help to Save account between September 2018 and March 2023.
But that means millions on Universal Credit still haven’t opened one.
Healthy start – £442
The cost of the weekly grocery shop is enough as it is without factoring in children.
But new or expectant parents can get up to £442 worth of free food a year through the Healthy Start scheme.
Anyone more than 10 weeks pregnant or with a child under four years old and on benefits can apply online or via email.
If eligible, you are issued with a card which you can use in a number of supermarkets and retailers.
But you can only use the card to buy certain products such as plan liquid cow’s milk, fresh, frozen and tinned fruit and vegetables and tinned pulses.
The full list of benefits qualifying you for the scheme is:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Child Tax Credit with a family income of £16,190 or less per year
- Pension Credit
- Universal Credit with no earned income or total earned income of £408 or less per month for the family
You can also apply for the scheme if you are under 18 and not on any benefits.
You can find out more about the scheme here.
Energy bill grants – £1,500
A number of energy firms offer struggling customers grants to cover the cost of their bills, including British Gas, Octopus Energy, Scottish Power and EDF.
They can be worth up to a whopping £1,500 too so are well worth looking into.
Eligibility criteria varies depending on who your provider is, but usually it’s if you’ve fallen into debt, have a low income or receive benefits.
Make sure you check with your supplier what help might be available.
Sure Start maternity grant – £500
New or expectant parents on certain benefits can get free cash help to cover the cost of having a child.
It’s called the Sure Start maternity grant and you usually qualify if you’re pregnant with your first child or already have children and are expecting a multiple birth (such as twins).
You or your partner will need to be on one of the following benefits to qualify:
- Income Support
- income-based Jobseeker’s Allowance
- income-related Employment and Support Allowance
- Pension Credit
- Child Tax Credit
- Working Tax Credit that includes a disability or severe disability element
- Universal Credit
You may also qualify if you are receiving support for a Mortgage Interest loan.
You can make a claim for a Sure Start grant by filling in the Sure Start Maternity Grant (SF100) claim form.
Free childcare – £1,630
Parents on Universal Credit can now receive money to cover up to 85% of childcare costs up front.
The amount available has risen too – from £646 to £951 for households with one child and £1,108 to £1,630 for two.
It is a major win for The Sun’s Make Universal Credit Work campaign.
To apply for money back on your childcare, you will have to go through your local council.
You can find out what authority area you fall under by using the Government’s locator tool.
Social tariffs – £256
Households on benefits can take advantage of broadband social tariffs – you could save up to £256 on average a year too.
Of course, the exact amount you’ll save varies depending on your personal circumstances.
Some of the benefits that qualify you for a social tariff include Universal Credit, Employment and support allowance and Jobseeker’s Allowance.
Ofcom has a list on its website of all the providers that offer social tariffs so make sure to check them out.
Providers offer different packages and broadband speeds, so it’s worth shopping around for the best deal.
Always remember that the exact amount you’ll save by switching will depend on how much you were paying for your broadband before.
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
