It’s a benefit claimed by millions of people up and down the UK but you might not realise how Universal Credit can make you eligible for other handouts worth tens of thousands of pounds per year.
The money, paid in cash, is totally free and does not need to ever be repaid and won’t affect your future Universal Credit amount either.
A common misconception is that Universal Credit is only for people not in work, whereas actually as of December 2023, there were 2.4 million people in work while claiming Universal Credit.
That means 38 percent of all people claiming the benefit are actually in work and having to claim UC as a top-up to their low income.
A report by the government said: “Universal Credit is available to people on a low income as well as those who are out of work.
“There were 2.4 million people on Universal Credit in employment for December 2023, 38% of all people on Universal Credit. This figure has been stable since January 2023.”
The biggest single benefit boost for people on Universal Credit is for those with children.
If you claim Universal Credit, you can also claim back up to 85 percent of your childcare costs, as long as you are working or about to start working – ie a provable job offer.
The maximum amount you can claim back is £1,739.37 for two children or more, which is a very handy £20,827.44 per year.
Other benefits you can claim on Universal Credit include a £1,500 energy bills grant and a council tax reduction worth £2,171, as well as about £328 towards water bills.
Several energy firms offer energy bill grants for those on Universal Credit which can be used to wipe off arrears and you can also apply for little-advertised social tariffs which offer cheaper rates.
This is the same as water bills – again, water firms often offer discounted social tariffs which could see you issued much lower bills than normal.
