8 ways to get FREE cash if you're on Universal Credit – worth almost £6,000
Aneira Davies
Social and newsletter writerFrom help towards energy bills and internet costs, to cost of living payments, make sure you're getting everything you're eligible for
Low-income families who claim certain benefits may be eligible for a lot of extra help this montn – in the form of grants, one-off payments and discounts.
And, with money at the forefront of many of our minds, especially during a cost of living crisis, it's welcome news for struggling households.
Those on Universal Credit are eligible for the extra cash boosts – which range from free childcare, extra help towards energy bills and more.
And, if you qualify for everything on the list, you could get up to £5,928.
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- Martin Lewis' bank account warning
- Child maintenance 'crackdown' for parents who refuse to pay
- £100 per week for people with 1 of 25 skin conditions
- Low-income households offered one-off £100
- Families urged to apply for one-off £250 payment
1. Household Support Fund – £100
The next round of Household Support Fund (HSF) is being rolled out through October.
The HSF HSF is a Government-funded project which provides money to local councils to help families in their areas.
Local councils can use their share of the £842 million, issued by the Department for Work and Pensions (DWP), how they feel would be best for their residents.
Some councils have given households cash, others have provided supermarket vouchers, and some have given energy-saving packs including thermal blankets and air fryers to help save on heating bills.
As an example, residents in Dorset could get £150 worth of supermarket vouchers from this Thursday (5 October).
You can see a full list here of the support available, broken down by area.
2. Cost of Living payment – £300
The second DWP Cost of Living payment will be made between 31 October and 19 November.
The payment is the second of 3 payments which are designed to help with the rising cost of living crisis.
The next cost of living instalment – which is for £300 – paid this month is set to be a huge help to millions of households who are struggling financially and will have to face higher energy bills as the winter approaches.
It comes after the first payment which was made in spring 2023, and the final and third payment will be made in spring 2024.
Universal Credit claimants and other households in receipt of benefits are eligible for the payment, worth £900 for the financial year 2023-2024.
You need to be on certain benefits in order to qualify for Cost of Living payments.
These are:
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Universal Credit
- Child Tax Credit
- Working Tax Credit
However, you'll have to have been claiming 1 of the above benefits during the qualifying period – that was between 18 August and 17 September – to get the cash.
Find out more about the Cost of Living payments – and how they work – here.
3. Free childcare – £1,630
Parents on Universal Credit can also apply for money to help towards their childcare costs.
Earlier this year, the DWP set out plans for how parents on Universal Credit will be able to claim up 47% more in childcare costs.
The amount that parents in Great Britain can claim back monthly for their childcare costs on Universal Credit is now up to £951 for 1 child and £1,630 for 2 or more children – a rise of 47% from the previous limits of £646 for 1 child and £1,108 for 2 or more children.
The additional support is worth up to £305 per month, per family, for families with 1 child, or £522 per month, per family – based on a family with 2 children.
It's also the first step in what the Government promises will be the largest the ever expansion of childcare, some of which was alluded to in the Spring budget.
And, if you need more help with the cost of your childcare, we've got all the latest advice here.
4. Cheaper phone bills – £256
Families claiming Universal Credit can take advantage of some broadband providers' social tariffs – where you could save an average of £256 a year towards these costs.
While the exact amount will depend on your own circumstances, current prices are between £10 and £20 per month – which means you could be saving a huge amount on broadband bills.
The plus points include superfast broadband, minimal set-up costs (if any at all) and you can switch free of charge.
You can also rest assured you won't pay any more than what you agree at the start of the contract – as the price won't go up mid contract.
Regulator Ofcom says: 'Social tariffs are cheaper broadband and phone packages for people claiming Universal Credit, Pension Credit and some other benefits. Some providers call them "essential" or "basic" broadband.
'They’re delivered in the same way as normal packages, just at a lower price.'
5. Energy bill grants – £1,500
A number of energy suppliers – including British Gas and Scottish Power are offering their customers grants to cover the costs of their bills.
And it could amount to up to £1,500 of help.
The help is available to those customers who have fallen into debt, claim certain benefits or have a low income and more information can be found through your energy supplier.
And that's not all.
Energy provider E.ON Next has also launched its 'Winter Support' package for customers who are struggling to pay bills – and it could see them getting a 50% discount on their gas and electricity bills for up to 6 months.
6. Sure Start maternity grant – £500
New or expectant mums can apply for the Government's Sure Start Maternity Grant – a one-off £500 payment for anyone living in England, Wales or Northern Ireland (if you live in Scotland, there's a separate grant you can apply for).
The grant is meant to help mums on lower incomes cover the costs of having a child and, depending on your circumstances, you may be eligible for more than £500.
And anyone claiming Universal Credit should be able to get it.
You'll usually qualify for the payment if both of the following apply:
- you’re expecting your first child, or you’re expecting a multiple birth (such as twins) and have children already
- you or your partner already get certain benefits (full list below)
You WON'T be eligible for the payment if you already have children and are expecting 1 child.
Eligibility can be a bit complex, so it's worth checking to see if you're eligible and applying just in case you qualify for help.
You can find out if you're eligible and how to apply here.
7. Help to Save – £1,200
This little-known Government scheme is completely free cash that's given to you over a 4-year period – if you manage to make a saving.
It's available to anyone claiming Universal Credit and works by offering prospective earners a 50% bonus on any savings they add into their Help to Save account.
And if you add the full amount (£50 per month over a 4-year period), you could end up getting an extra £1,200 in cash.
But it's still beneficial even if you don't use it to its full capacity.
Read more about how it works here.
8. Healthy start - £442
The Healthy Start scheme is a cash boost aimed at providing pregnant women and children under 4 with important foods to ensure they stay healthy.
Low-income families and pregnant women can apply for a Healthy Start card, which is a pre-paid card topped up with money.
This equates to up to £8.50 a week or £442 a year per child.
And the card can be spent in UK shops on certain products such as milk, fruit and vegetables, formula milk and pulses.
You can also use it to collect vitamins for babies and young children. The balance will be topped up every 4 weeks.
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