UK Benefits: Top 5 Benefits for Low-Income Households in the UK

Across the UK, millions of people are trying to stretch their income just to get through the week — especially with the rising cost of energy, food, and housing. It’s tough, particularly for families with kids, older adults, or anyone living with a health condition.

The good news? There’s help out there. The UK government offers a range of benefits and support schemes designed to take some of the pressure off when money’s tight. 

These UK benefits can help cover the basics — from rent and childcare to food, disability support, and even retirement income — so you’re not left struggling to get by.

In this guide, we’ll walk you through five key benefits available for low-income households. We’ll break down what each one offers, who can apply, and how to get started — so you can feel more in control and get the support you’re entitled to.

1. Universal Credit

Universal Credit is a key part of the UK’s benefits system. It’s designed to make things simpler by rolling several different payments into one monthly benefit. 

Instead of juggling separate applications for things like Jobseeker’s Allowance, Housing Benefit, or Tax Credits, you can apply for Universal Credit and get the support you need in one go.

It replaces six older benefits:

• Jobseeker’s Allowance (income-based)
• Income Support
• Employment and Support Allowance (income-related)
• Housing Benefit
• Child Tax Credit
• Working Tax Credit

The idea is to make accessing financial help easier, especially if you’re dealing with changes in work, income, or family life.

Key Features:

• Combines multiple benefits into a single monthly payment.
  
• Paid monthly in England and Wales or twice a month in Scotland (upon request).
  
• Offers additional elements for housing, children, disabilities, and carers.
  
• Encourages and supports claimants to move into employment through work coach support.
  

Who Can Apply?

You may qualify if:

• If money’s feeling tight — maybe you’re out of work, facing health challenges, or busy looking after someone — there’s a good chance help is available. You don’t have to go through it alone. It’s worth checking.
  
• Generally, you’ll need to be at least 18 to apply. But there are a few exceptions where 16- or 17-year-olds can get support too.
  
• You and your partner have savings under £16,000.
  
• You are a UK resident and have the right to live and work in the UK.

Getting Started with Your Application:

Apply online via the GOV.UK Universal Credit page. You’ll need details such as bank account information, housing costs, and identification documents.

Additional Support:

• Work Allowance: If you’re raising a child or living with a disability, Work Allowance lets you keep more of what you earn before your Universal Credit starts to reduce. It’s a way to make sure working doesn’t mean losing vital support.
• Childcare Costs: Childcare isn’t cheap — and if you’re trying to get back into work or juggle a job and parenting, the costs can really add up. The good news? You might be able to get up to 85% of those costs covered, giving you one less thing to worry about.
• Advance Payment: If you’re waiting for your first payment, you can request an advance.

Also read: A Simple Guide to Applying for Universal Credit in the UK

2. Child Benefit

Raising children is a joyful but expensive journey. Child Benefit provides a tax-free monthly allowance to help with the costs of raising children, regardless of income level—although high earners may be affected by tax implications.

Key Features:

• £26.05 per week for your first child.
• £17.25 per week for each additional child (as of 2024).
• Paid every four weeks, though some families may receive weekly payments.
• Not means-tested, but subject to the High Income Child Benefit Tax Charge if income exceeds £50,000.

Who Can Apply?

• You’re responsible for a child under 16, or under 20 if they’re in approved education or training.
• You live in the UK.
• You can apply regardless of employment status or marital situation.

Heads up:

If you or your partner earns more than £50,000 a year, you may need to pay back some of the Child Benefit through a tax return. Sounds like a bit of a faff, right? But here’s why it’s still worth claiming — even if you don’t actually need the money. 

Making a claim helps protect your National Insurance record, which can be important for your State Pension later on. So, it’s less about the money now, and more about keeping your future secure. 

Getting Started with Your Application:

Apply via the Child Benefit section on GOV.UK. It typically takes about 6–12 weeks to process new claims.

Also read: Step-by-Step Guide: Claiming Child Benefit in the UK 

3. Housing Benefit

Rent can take up a big chunk of your income — especially if you live in pricier places like London or Manchester. If you’re struggling to keep up, Housing Benefit could help cover some (or even all) of your rent, depending on your situation.

Key Features:

• Can cover partial or full rent based on income, family size, and local rent levels.
• Payments can be made directly to landlords to help avoid arrears.
• Only available to certain groups now, such as pensioners or people in supported or temporary accommodation.
• Cannot be used for mortgage payments, but Support for Mortgage Interest (SMI) may help with interest on home loans.

Who Can Apply?

You may qualify if:

• You are of State Pension age.
• You live in supported, sheltered, or temporary housing.
• You have low or no income.
• You have less than £16,000 in savings (unless you get Pension Credit).

Important Note:

If you’re of working age, you’ll need to apply for housing help through Universal Credit instead.

Getting Started with Your Application:

Applications go through your local council, and forms are available on the Find Your Local Council page.

Also read: How to Apply for Housing Benefit in the UK: A Detailed Guide

4. Disability Benefits

If you’re living with a disability, you probably know how quickly the extra costs can add up — things like doctor visits, getting around, or even just day-to-day support. The good news? There are benefits out there in the UK specifically designed to help with exactly that.:

A. Personal Independence Payment (PIP)

• For people aged 16 to State Pension age with long-term physical or mental health conditions.
• Two components: Daily Living and Mobility, with standard and enhanced rates.
• Medical assessments are often required.

B. Disability Living Allowance (DLA)

• Only for children under 16 with care or mobility needs.
• Adults are now assessed under PIP.

C. Attendance Allowance

• For those over State Pension age who need help with personal care due to illness or disability.
• Doesn’t require a formal diagnosis and is not means-tested.

Key Features:

• These benefits are tax-free.
• They don’t affect other benefit entitlements and may increase eligibility for other support, like Carer’s Allowance or the Blue Badge scheme.

Getting Started with Your Application:

Visit the relevant GOV.UK pages for PIP, DLA, or Attendance Allowance.

5. Pension Credit

Pension Credit is one of those hidden gems that many people miss out on. If you’re retired and living on a low income, it could give your finances a real lift — and even open the door to extra help with things like housing, council tax, and heating bills.

Key Features:

• Guarantee Credit tops up your weekly income to a minimum level.
• Savings Credit offers a reward to those who have modest retirement savings (only for those who reached pension age before April 6, 2016).
• May also qualify you for:
  • Cold Weather Payments
  • Free NHS dental treatment
  • Free TV licence (if over 75)

Eligibility:

• You must have reached State Pension age.
• Your income is below £201.05 (single) or £306.85 (couple) per week (2024 rates).
• You live in England, Scotland, or Wales.

Getting Started with Your Application:

• Online via the GOV.UK Pension Credit page.
• Or by calling 0800 99 1234.

Also read: Explained: What Is Pension Credit and How to Qualify?

More Ways to Get Support

Even if you don’t qualify for the main benefits, there’s still help available. Here are a few extra lifelines that could make a big difference:

• Council Tax Reduction
  Struggling with bills? You might be able to get money off your Council Tax — or even have it waived entirely, depending on your situation.
• Free School Meals
  If you’re on Universal Credit or certain other benefits, your children could get free meals at school — one less thing to worry about during the week.
• Healthy Start Scheme
  Expecting a baby or have little ones under 4? You could get free vitamins and vouchers for essentials like milk, fruit, and vegetables.
• Winter Fuel Payment
  Cold winters shouldn’t mean cold homes. If you’re over a certain age, you could get a one-off payment to help cover heating costs.
• Cold Weather Payments
  When the temperature drops below freezing for 7 days straight, you may get £25 to help with heating — no need to apply; it’s automatic if you’re eligible.
• Local Welfare Assistance
  Need emergency help? Some councils offer grants or vouchers for food, clothes, or must-have household items if you’re in crisis.

How to Maximise Your Benefits

To ensure you’re not missing out:

1. Use a Benefits Calculator
   Free tools like Turn2us, Entitled to, or Policy in Practice can help you find every benefit you’re entitled to.
2. Keep Your Details Updated
   If your income or living situation changes, report it to avoid overpayments or penalties.

Final Thoughts: Don’t Leave Money on the Table

Navigating the benefits system might seem complicated, but the support available can offer a lifeline. Whether you’re out of work, raising a family, living with a disability, or retired, there’s help out there to make life a little easier.

Don’t wait—see what support you could get. Try a benefits calculator, check if you’re eligible, or talk to someone at your local support centre. These services exist to help you live a little easier, not just get by.

Frequently Asked Questions (FAQs)

Can I claim more than one benefit at once?
Yes! Benefits are often designed to work together. For example, you can receive Child Benefit alongside Universal Credit.

How are benefits paid?
Most are paid monthly into your bank account, though some can be weekly depending on the scheme or region.

Do I have to repay these benefits?
No—benefits are not loans. However, if you’re overpaid (due to incorrect details), you may need to repay the excess.

What if English isn’t my first language?
Many councils provide translation or interpretation services. Citizens Advice can also assist in multiple languages.