Millions of low-income and universal credit households in the UK are missing out on potentially thousands of pounds in ‘hidden’ benefits and support to help ease the sky-high cost of living.
To boost the spending power of those most in need, many organisations now offer support and discounts outside of benefits administered by the Department for Work and Pensions (DWP). Several of these do not even require an active benefit award to be eligible.
Local councils, energy firms, water providers, the NHS and more all have means of support on offer to help people ensure the essentials are provided for.
Research by Policy in Practice estimates that more than 7.5 million people will miss out on £24bn worth of benefits and support in 2025-2026. Reasons for this level of underclaiming include lack of awareness, complexity, and stigma.
Anna Stevenson, benefits expert at Turn2us, said: “Many people don’t realise that claiming universal credit or pension credit can open the door to extra support.
“These forms of support exist because the main rate of benefits often doesn’t fully cover essential living costs. They are designed to help people meet specific needs, but awareness is low and many people miss out simply because the system is complex and hard to navigate.
“Using a benefits calculator can help people check what support they’re entitled to and make sure nothing is overlooked. The Turn2us Benefits Calculator helps people understand both their main benefit entitlements and the extra support they may be eligible for.”
Here are seven of the main forms of extra support available.
Council tax discounts
Those who meet certain criteria or are on certain benefits may be able to apply for a discount on their council tax of up to 100 per cent (this is sometimes called council tax support).
Each local council runs its own scheme, so eligibility can differ. Those who can demonstrate they are facing severe hardship and can’t afford to pay their council tax may still get a discretionary reduction from their authority.
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Around 2.5 million households will miss out on an average of £1,286 in 2025-2026, Policy in Practice estimates.
More information can be found on the government’s website.
Free school meals
More than 2 million children in the UK currently receive free school meals, with this figure set to rise by half a million in September when eligibility is expanded to children of all parents receiving universal credit.
Under current rules, only children living in households with an income of less than £7,400 per year are eligible. The government estimates the expansion will lift 100,000 children out of poverty as a result.
However, an estimated 123,000 children across the UK are currently missing out on the provision, despite being eligible. The expansion does not introduce auto-enrolment, meaning parents are advised to apply in good time.
Help with healthcare costs
In certain cases, people claiming specific benefits or on low incomes can get extra support with healthcare-related costs through the NHS.
Those on income support, and income-based JSA or ESA, are automatically entitled to free NHS prescriptions, dental treatment, sight tests, and wigs. Refunds of necessary travel costs can also be claimed.
However, these legacy benefits will cease to be paid from April, when they will be fully replaced by universal credit.
Universal credit claimants are only eligible for the same support if their monthly household take-home pay is £435 or less, or £935 or less if claiming the child or health-related element.
The NHS also runs a low-income scheme which anyone with less than £16,000 in savings can apply for. This can help pay for the items listed above.
Energy bill discounts
As the cost of energy remains stubbornly high post Covid-19, there are many means of support available to help bring costs down.
One of the central DWP-administered schemes is the warm home discount, an annual £150 rebate which was recently extended to 2030-2031.
The scheme was also expanded last year to include 2.7 million more families, bringing the total to around six million.
Those claiming certain benefits like universal credit and pension credit should get a letter confirming their eligibility in the winter, with the automatic discount coming later.
Crucially, this does not apply to those living in Scotland, who must apply for the scheme in most cases.
A number of energy suppliers offer help for those struggling with their energy bills. These include British Gas, Scottish Power, EDF, E.ON, OVO and Octopus.
Water bill support
For those struggling with household costs, social tariffs are available for both broadband and water bills. This will mean a reduced rate for certain eligible households.
Every water company operating in the UK has a social tariff by law. However, the amount on offer can vary between regions and, because water providers can’t be chosen like energy providers, the support has been criticised as a “postcode lottery”.
For instance, some offer as much as 90 per cent off bills, while others cap support at a 20 per cent reduction.
Discounted travel
Those claiming universal credit may be able to get up to 50 per cent off transport costs with the Jobcentre Plus Travel Discount card.
This cuts the price of selected rail tickets, as well as bus and Tube services in London.
The card is issued at the discretion of Jobcentre staff. Claimants aged between 18 and 24 can get the card for three to nine months at a time, while those aged 25 and over can get it for up to 12.
Social broadband tariffs
Many broadband providers offer social tariffs to those on certain benefits like universal credit or pension credit. Regulator Ofcom has a guide to what is on offer.
