The main ones to check
| Benefit or scheme | Who it’s for |
|---|---|
| Universal Credit | People on a low income, in or out of work, with help for rent and children |
| Child Benefit | Anyone responsible for a child under 16 (or under 20 in approved education) |
| Tax-Free Childcare | Working parents: the government adds £2 for every £8 you pay into the account |
| Free childcare hours | Working parents of young children (rules differ in England, Scotland, Wales and Northern Ireland) |
| Marriage Allowance | Couples where one earns under the Personal Allowance and the other pays basic-rate tax |
| Council Tax Reduction | People on a low income, from your local council |
| Pension Credit | People over State Pension age on a low income |
| Carer’s Allowance | People caring for someone at least 35 hours a week |
Tax credits have closed: since April 2025, everyone who got them has moved to Universal Credit or Pension Credit.
Child Benefit is worth claiming even on a high income
Child Benefit is £27.05 a week for the eldest or only child and £17.90 for each other child in 2026/27. If you or your partner earn over £60,000, you may pay some or all of it back through the High Income Child Benefit Charge. Claim anyway: the claim gives the parent at home National Insurance credits towards their State Pension, and you can choose not to receive the payments.
How Universal Credit works with pay
Universal Credit is worked out on your take-home pay, after Income Tax and National Insurance. For every £1 of it above any work allowance, Universal Credit drops by 55p. You get a work allowance if you have children or limited capability for work.
| Part | Amount |
|---|---|
| You keep | £32.40 |
| Universal Credit falls (55% of £72.00) | £39.60 |
| Income Tax (20%) | £20.00 |
| National Insurance (8%) | £8.00 |
| Extra pay | £100.00 |
Universal Credit falls by 55p for each £1 of take-home pay. Earning under £12,570 a year, with no Income Tax or National Insurance, you keep £45.00 of each extra £100.
So you’re always better off working more, but you keep less of each extra pound than the tax rates alone suggest. The same goes for paying into a pension: it lowers the pay Universal Credit counts.
Pension Credit opens other doors
Pension Credit tops up a low income over State Pension age. Even a small award matters, because it can bring help with rent, Council Tax and heating costs, and a free TV licence for people aged 75 or over. Many pensioners who could get it don’t claim.
How to check what you can get
- The GOV.UK benefits calculators (from Turn2us, Policy in Practice and entitledto) are free and anonymous.
- Citizens Advice can help you claim and check you’re getting everything.
- Your local council handles Council Tax Reduction and can sometimes help in a crisis, for example with food or energy bills.
Have your payslips, rent or mortgage details, Council Tax bill and savings balances to hand: the calculators ask for them.
Why it matters
Unclaimed help can be worth hundreds of pounds a month. Add it to your budget, and use any back payments to start an emergency fund or clear expensive debt. If you’re behind on bills, see our free money help page.