Brits could save thousands this Christmas (Image: Getty)
Extra financial support could be available this Christmas to help struggling households.
The winter months often bring about increased financial pressure. This is particularly true for those grappling with energy bills as homes rely more heavily on heating to stay warm amid falling temperatures.
Coupled with the financial worries linked to Christmas, many will be seeking ways to reduce costs wherever possible. Thankfully, support is available for Britain’s most vulnerable.
This includes direct discounts on energy bills, financial aid for buying household essentials, and payments to assist with childcare. For a comprehensive overview of the support available throughout the winter months, read below.
Council Tax discount – Over £2,000
Your living and economic circumstances could lead to a significant reduction in your council tax bill. In some instances, you may even qualify for a total discount, meaning you won’t have to pay anything towards your council tax bill.
Discounts are available if you’re: a single person living alone, a student, receiving the Guarantee Credit element of Pension Credit, receiving payments from a low-income benefit, have a disability or live with someone who does, or have a severe mental impairment (SMI). A band D property typically pays over £2,000 a year in council tax.
Therefore, if you’re eligible for a full discount, all that money can go straight back into your savings.
Discretionary housing payment
Discretionary Housing Payments (DHPs) offer financial assistance to those grappling with rent or housing costs. If you’re currently on Housing Benefit or the housing element of Universal Credit and need additional funds to maintain your accommodation, a DHP could be an option.
This discretionary payment can help cover a shortfall in rent, pay for rent deposits, or fund advance rent if you’re relocating. Applications should be made to your local council.
More information about applying for DHPs can be found here.
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DWP Christmas bonus – £10
The Department for Work and Pensions (DWP) is offering a Christmas bonus of £10 to a broad range of benefit claimants as part of their annual scheme. To qualify, claimants must be receiving a qualifying benefit, such as Carer’s Allowance, Disability Living Allowance (DLA), Pension Credit or Personal Independence Payments (PIP) among others.
The £10 payment will appear as ‘DWP XB’ on your bank statement. Anyone who believes they are eligible but does not receive a payment during December should contact the DWP from January 1, when all payments should have been dispatched.
Energy bill grant – £300
Families struggling to meet their energy bills this winter could be eligible for a free payment of up to £300. This financial aid is part of the Government-funded Household Support Fund scheme, which was first introduced by the previous Conservative government in 2021.
The scheme provides local councils with funds to offer cost of living support to households in need. Each council has its own specific support, which can only be claimed by residents of that area.
For instance, Blackpool Council is offering payments of £200 and £300 to households struggling to afford their energy costs. Notably, you generally do not need to be claiming Universal Credit or any other Department for Work and Pensions (DWP) benefits to get this help.
Flexible Support Fund – £150
The Flexible Support Fund aims to help parents return to work and is offered by local jobcentres. Parents can use the fund alongside other benefits to help cover a wide range of costs.
It can also be used to pay for training costs up to £150. While there is no real upwards limit of what you can claim through FSF, if you’ve already paid for something, you won’t be able to reclaim it through FSF.
Free childcare – over £1,700 per month
Since April of this year, parents in England of children older than nine months are able to access 15 hours of funded childcare, while 30 hours of free childcare is available to parents of children aged between three and four. Meanwhile, families of children aged between nine months and school age will be able to claim 30 hours of free childcare a week from September next year.
Applications can be made online here.
Funeral Expenses Payment – up to £1,000
Universal Credit recipients can access a Funeral Expenses Payment. This is applicable if they are the partner, close relative or close friend of the deceased; the parent of a baby stillborn after 24 weeks of pregnancy; or the parent or person responsible for a child who was under 16 (or under 20 and in approved education or training).
This payment is also accessible to those on other benefits such as Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Pension Credit, Housing Benefit, the disability or severe disability element of Working Tax Credit or Child Tax Credit. The amount given is not fixed.
It can cover costs like burial or cremation fees, some of the costs of moving the body or transporting the coffin and bearers to the service, one return journey for you to attend the funeral, and up to £1,000 for related expenses like the funeral director’s fees, the coffin, cars or flowers.
Healthy Start Vouchers
The Healthy Start Scheme offers parents a card loaded with money that can be used in selected shops across the UK. However, it’s not just food and milk that can be purchased with the card.
To bolster your child’s health, the card can also be used to obtain vitamins during pregnancy and breastfeeding, as well as vitamin drops for infants and young children. To qualify for a Healthy Start Card, parents must either be on Universal Credit or receiving Child Tax Credit.
One of the easiest ways to apply is by filling out an online form on the NHS website.
Households Support Fund – £100s across different regions
The Households Support Fund – offering hundreds across various regions – was initially launched in October 2021 and has been extended several times since, with the most recent extension making it available until March 2025. The DWP has pumped an additional £421 million into the fund for distribution among local authorities in England.
Extra funds have been allocated to devolved social security administrations in Scotland, Wales, and Northern Ireland. Local councils can then use these funds to support their residents in the most appropriate way.
Some councils may also be able to help with obtaining essential household appliances such as fridges, freezers, and ovens, arrange for an engineer for heating/lighting repairs, and assist with housing costs (excluding mortgages) in emergency situations where existing schemes cannot provide help. Some are introducing voucher schemes to support individuals and families.
The government’s online directory provides a quick and easy way to find out about your local council’s Home Schooling Fund (HSF). This will direct you to your local council’s website where more information is available.
School uniform grants – varies based on local authority
Some low-income households may be eligible for a school uniform grant, which can be worth up to £200 to help cover the cost of school uniforms. However, not all councils offer this support and eligibility varies depending on each local council.
To check if your local council offers a school uniform grant, simply input your postcode on GOV.UK..
Warm home discount – £150
The Warm Home Discount Scheme, offering a £150 reduction on electricity bills for those on certain benefits, underwent changes to its eligibility rules in 2022. As a result, some individuals may no longer qualify, while others might need to apply – particularly those living in Scotland, as they will not receive the discount directly.
The Department for Work and Pensions (DWP) makes direct payments to energy suppliers between October and March. Households that qualify may also be able to get the discount off their gas bill if their supplier provides both gas and electricity.
To avail of this scheme, contact your supplier once the scheme opens. If you’re a credit customer, the £150 will be added to your electricity account.
For those on Pay As You Go or Prepayment, a voucher will be provided to top-up your meter.
