The seven ‘hidden’ benefits that millions are missing out on
Millions of low-income and universal credit households in the UK are being left out of potentially thousands of pounds of ‘hidden’ help and support that would help alleviate the very high costs of living.
To increase the spending power of those most in need, many organizations now offer support and discounts outside of the benefits administered by the Department for Work and Pensions (DWP). Many of these don’t even require an active charity award to qualify.
Local councils, energy companies, water providers, the NHS and many other organizations have support tools to help people ensure basic needs are met.
Policy in Practice research estimates that more than 7.5 million people will be missing out on £24 billion worth of benefits and support in 2025-2026. Reasons for this level of underclaim include lack of awareness, complexity, and stigma.
Turn2us benefits expert Anna Stevenson said: “Many people don’t realize that claiming universal credit or pension credit can open the door to extra support.
“The reason these types of supports exist is because basic benefit rates often do not fully cover basic living costs. They are designed to help people meet their specific needs, but awareness is low and many people miss out on this support because the system is complex and difficult to understand.”
“Using a benefits calculator can help people check what support they are entitled to and make sure nothing is missed. Turn2us Benefit Calculator “It helps people understand both their basic benefit entitlements and the extra support they may be entitled to.”
Here are seven of the types of extra support available.
Council tax reductions
Those who meet certain criteria or receive certain benefits can apply for up to a 100 per cent reduction in council tax (this is sometimes called council tax support).
Each local council runs its own program, so eligibility may vary. Those who can prove they are facing serious hardship and are unable to pay council taxes can still receive a discretionary reduction in their entitlements.
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Get a free partial share of up to £100.
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Terms and conditions apply.
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Around 2.5 million households will miss out on an average income of £1,286 in 2025-2026, Policy in Practice estimates.
You can find more information at: government website.
Free school meals
More than 2 million children in the UK currently receive free school meals; This figure will rise to half a million in September when eligibility is expanded to include the children of all parents receiving universal credit.
Under current rules, only children living in households with an annual income of less than £7,400 are eligible for this benefit. The government estimates the expansion will ultimately lift 100,000 children out of poverty.
However, an estimated 123,000 children across the UK are currently unable to access the service despite being eligible. There is no auto-enrollment feature in the expansion; This means parents are advised to apply in time.
Help with medical expenses
In some cases, people on certain benefits or on low incomes may receive extra support with health-related costs through the NHS.
Those on income support and an income-based JSA or ESA are automatically entitled to free NHS prescriptions, dental treatment, vision tests and wigs. A refund of necessary travel expenses may also be requested.
However, payments of these old benefits will stop from April and 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 they are claiming a child or health-related element.
The NHS also runs a low-income scheme that 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 support avenues available to help reduce costs.
One of the central schemes administered by the DWP is the warm homes discount, a £150 annual rebate that has recently been extended to 2030-2031.
The program was expanded last year to cover an additional 2.7 million families, bringing the total to nearly six million.
Those who receive certain benefits, such as universal credit and pension credit, are required to receive a letter confirming their eligibility during the winter months; The automatic discount will come later.
Importantly, this does not apply to residents of Scotland, who in most cases must apply for the scheme.
A number of energy suppliers are offering help to 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 expenses, 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 offered can vary between regions and the support has been criticized as a “postcode lottery” as water providers cannot be selected in the same way as energy providers.
For example, some offer discounts of up to 90 percent on bills, while others provide assistance with a 20 percent discount.
discounted travel
Those who claim universal credit will be able to benefit from up to a 50 percent discount on transport costs with the Jobcentre Plus Travel Discount card.
This cuts the price of selected train tickets in London, as well as bus and tube services.
The card is issued at the discretion of Jobcenter staff. People ages 18 to 24 can get the card for three to nine months, while people ages 25 and over can get the card for up to 12 months.
Social broadband tariffs
Many broadband providers offer social tariffs to those who receive certain benefits, such as universal credit or pension credit. Regulator Ofcom has a guide to what it offers.
