Types of benefits

Benefits for people on low incomes

If your income is limited, there are several means-tested benefits designed to help with everyday costs.

The main low-income benefit is Universal Credit. This has replaced six older benefits including Income Support, Income-based Jobseeker's Allowance (JSA), and Working Tax Credit.

Universal Credit (UC):

• Helps with living costs and housing expenses 

• Is based on your income, savings, household situation, and whether you have children. 

Other forms of support for people on low incomes include:

• Council Tax Reduction – a local scheme run by councils to reduce your council tax bill if you’re on a low income or claiming benefits 

• Free school meals and Healthy Start vouchers – available for eligible families with children 

• Cold Weather Payment and Warm Home Discount – seasonal schemes to help with heating costs.

Benefits for people who are unemployed or unable to work

Out of work or can’t work due to illness or disability? There are benefits designed to give you breathing space while you look for work or focus on your health. Some may come with conditions, such as job-hunting or attending appointments.

• Jobseeker’s Allowance (JSA) – available to people who are unemployed but actively looking for work. JSA now mainly applies to those already claiming, as new claimants are usually directed to Universal Credit 

• Universal Credit (UC) – available for people who are out of work or can’t work. The amount you get is reduced if you get other benefits at the same time 

• Employment and Support Allowance (ESA) – for people whose ability to work is limited due to illness or disability. Depending on your circumstances, you may qualify for new-style ESA or income-related ESA (which has been replaced by Universal Credit for most people) 

• Statutory Sick Pay (SSP) – if you’re employed but too unwell to work, you may be entitled to sick pay from your employer for up to 28 weeks. 

Benefits for families and children

Bringing up kids can be expensive, but there are benefits that can help with some of those everyday costs, from food and clothing to childcare and school support.

The main one is Child Benefit, which:

• Is usually available if you’re responsible for bringing up a child under 16 (or under 20 if they’re in approved education or training) 

• Isn’t means-tested but the amount you're eligible for reduces between earnings of £60,000 - £80,000. This means you may owe some or all of the benefit back at the end of the tax year.

Other family-related benefits include:

• Statutory Maternity, Paternity and Shared Parental Pay – payments to support parents when they take time off work for a new baby or adoption 

• Maternity Allowance – for those who are self-employed or don’t qualify for Statutory Maternity Pay from an employer 

• Guardian’s Allowance – extra help if you’re bringing up a child whose parents have died 

• Sure Start Maternity Grant – a one-off payment for parents on certain benefits when they have their first child. 

Benefits for disabled people and carers

If you have a disability or long-term health condition – or you’re caring for someone who does – there are benefits that could help.

For disabled people:

• Personal Independence Payment (PIP) – to help with the extra costs of long-term ill health or disability if you’re aged 16 to State Pension age 

• Disability Living Allowance (DLA) – now mainly for children under 16, as adults usually claim PIP instead 

• Attendance Allowance – for people over State Pension age who need help with personal care due to illness or disability 

• Disabled Facilities Grants – local council grants to adapt your home if you’re disabled. 

For carers:

• Carer’s Allowance – for people who spend at least 35 hours a week caring for someone getting certain disability benefits 

• Carer’s Credit – helps fill gaps in your National Insurance record if you’re caring for someone but not working. 

Benefits for older people

You may be able to claim certain benefits once you’re either 60 or reach State Pension age. These benefits can give you a safety net in retirement and help make life a little easier in later years.

• State Pension – a regular payment based on your National Insurance contributions 

• Pension Credit – a means-tested benefit that tops up your income if it’s below a certain level. It can also give access to extra help, such as free TV licences for those over 75 

• Housing Benefit – helps you pay your rent if you’re in supported, sheltered, or temporary housing 

• Winter Fuel Payment – a tax-free payment for people born before 22 September 1959 to help with heating costs in the winter months 

• NHS health costs – help with costs such as prescriptions, eye, and dental care 

• Attendance Allowance – for older people needing help with care 

• Free and discounted travel – such as a free older person's bus pass or a Senior Railcard. 

One-off payments and emergency support

Not all help comes in the form of regular benefits. In certain situations, you might qualify for one-off payments or short-term financial support.

Examples include:

• Bereavement Support Payment – for people whose husband, wife or civil partner has died if they were under State Pension age 

• Funeral Expenses Payment – to help with funeral costs if you’re on certain benefits 

• Budgeting Loans – interest-free loans if you’ve been on certain benefits for six months. Repayments are automatically taken from your benefits 

• Short-term benefit advances – if you’re waiting for your first benefit payment and in urgent financial need, you may be able to get an advance 

• Cold Weather Payment and Winter Fuel Payment – extra help with heating bills when temperatures drop 

• Scottish Child Payment and devolved schemes – some support is run separately in Scotland, Wales and Northern Ireland. 

How to check which benefits you’re entitled to

If you’re not sure what benefits you might be entitled to, there are straightforward ways to check:

• Try the benefits calculator on the Gov.uk website 

• Speak to Citizens Advice for free, confidential guidance 

• Reach out to a charity or support group such as Age UK