Universal Credit, the Department for Work and Pensions’ main benefit, is designed to support people on low incomes and those with certain health conditions. It is not only for unemployed claimants – many in full-time work on modest salaries also receive it as a top-up. Although the government’s welfare reforms will introduce changes, the benefit remains in place and its base rate is set to rise each year.
What many claimants may not realise is that being on Universal Credit can unlock up to £354.90 in extra support during August alone, through a combination of discounts and schemes.
Council tax discount: up to £1,794 a year
Universal Credit claimants can receive up to 75% off their Council Tax bill. The exact reduction depends on factors such as income, whether the claimant lives alone, has children, or has a disability.
For the 2025-26 tax year, the average Band D council tax bill in England is £2,392. A 75% discount on that amount is worth £1,794. Because council tax is typically billed in 10 monthly instalments, that works out to around £179 per month.
Energy bill help: up to £2,000
British Gas, Octopus Energy and other suppliers run schemes open to Universal Credit claimants and those on other low-income benefits such as Pension Credit. Through the British Gas Energy Trust’s Individual and Families Fund and the British Gas Energy Support Fund, eligible households can have between £50 and £2,000 of gas and electricity debt written off.
To apply, claimants must have received advice from a money advice agency and must use the money to clear debt on their own property with an open account, among other conditions. Other energy companies offer similar support, so it is worth checking directly with the supplier.
Averaged across a year, that level of support is equivalent to about £166 per month.
Free prescriptions: worth £118 a year
Universal Credit claimants earning less than £435 per assessment period may qualify for the NHS Help with Health Costs scheme. This includes free prescriptions, which are worth £118 per year, or £9.90 per month at current prescription charge rates.
Combining all these elements means a Universal Credit claimant who is able to take up each discount and scheme would be £354.90 better off.
