We’ve ways to help manage your money if you claim benefits, including how to get cheaper bills and boost your income. Plus, help if you're struggling and need to borrow money.
Help managing your money if you receive benefits
What to do after your first benefits payment
If you’ve just received your first Universal Credit or benefits payment, here’s what to do next.
Create a budget for your regular benefits payment date
Now you’ve received your first payment, double check your paperwork for your next payment date.
This will depend on the benefit you’re getting and where in the UK you live. For example, Universal Credit is usually paid:
once a month in England and Wales
once a month in Scotland, but you can ask for twice a month
twice a month in Northern Ireland, but you can ask for once a month.
If this is different to how you’re used to receiving your money, you might need to adjust your spending to make your benefits payment last until your next payday.
To help, our free and easy to use Budget planner records all your spending and gives you a breakdown of your finances. You’ll also see personalised tips to make your money go further.
Alternatively, you could use a spreadsheet or just write it all down on a piece of paper.
It’s also worth keeping a spending diary to note down everything you buy in a month.
Change any automatic bill payments to the day after you get paid
You can set up automatic payments called Direct Debits and Standing Orders to make sure you pay your bills on time, including rent or mortgage.
This is important as a late payment can damage your credit file, making it harder or more expensive to borrow money in the future.
It’s a good idea to change the date of any automatic payments to the day after your regular benefits payment date.
Direct Debits are usually used to pay bills – you’ll need to tell the company you’d like to pay this way and the date to take the money. They’ll then set them up for you.
Standing Orders are regular payments you set up, so usually for rent or to move money from one of your accounts to another.
Recurring card payments use your long card number to take money when it’s due.
Budget for lower payments if you’re paying back an advance
If you took an advance while waiting for your first Universal Credit payment, you’ll get less until it’s been repaid.
Repayments can be up to 25% of your Universal Credit standard allowance and the advance must be fully repaid within 24 months.
To see your repayment amounts and periods, you can:
sign in to your online Universal Credit accountOpens in a new window (if you applied online)
call the free Universal Credit HelplineOpens in a new window or Universal Credit Service CentreOpens in a new window in Northern Ireland
talk to your work coach.
Report any overpayments immediately
If you think you’ve been overpaid benefits or tax credits, contact the office paying your benefit as soon as possible. The longer you leave it, the more money you’ll have to pay back.
Here’s what to do for common benefit overpayments.
Universal Credit overpayments
call the free Universal Credit HelplineOpens in a new window or Universal Credit Service CentreOpens in a new window in Northern Ireland
add a note to your journal using your online Universal Credit accountOpens in a new window
Tax credit overpayments
HMRC will usually write to tell you the amount you owe and how to pay it back. For help or more information, call the Tax Credit helplineOpens in a new window
Housing Benefit or Council Tax Reduction overpayments
Report an overpayment of Housing Benefit or Council Tax Reduction to your local authorityOpens in a new window
For more information, see how to get help if you need to repay overpaid benefits
Stick to your claimant commitment to avoid your benefits being cut (sanctions)
If you’re claiming certain benefits, like Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance, you’ll have agreed to a set of responsibilities with your work coach.
For example, you must:
spend a certain number of hours looking for jobs
take part in training or work preparation
turn up to appointments or interviews on time
accept offers of paid work
provide evidence you’ve completed any set tasks.
This is called your claimant commitment. If you don’t meet all of them, your payments could be cut for a number of weeks – known as a sanction.
To avoid this happening, make sure you:
Understand all your responsibilities. Ask your work coach to explain anything that’s unclear and let them know if you’re unable to meet any upfront.
Set reminders for appointments.
Tell your work coach the best way to reach you so you don’t miss any messages. For example, by phone, email or using the journal on your online Universal Credit account.
Ask how to contact your work coach at short notice. For example, to let them know if you can’t attend an appointment or will be late.
Keep records of your activity, including copies of anything you get from the Jobcentre Plus.
For more information, see our guide Benefit sanctions and what to do about them
Plan ahead if your wages are not the same each month
It can be hard to budget if your wages are different each month, but here are some tips to help:
Add up your regular outgoings, like bills, rent and travel costs so you can quickly work out if you have any extra cash that month.
If you earn more than normal, try to save some money to help in future months.
If you’re self-employed, remember to put enough aside to pay your Self Assessment tax bill – this shouldn’t count as savings if you have proof of what it’s for, so won’t affect your entitlement to benefits.
Look at the year ahead so you can aim to save enough for months where you might:
spend more – like Christmas, birthdays and annual bills such as car and home insurance
earn less – if work slows down or you take a planned break.
For more help and information, see our guide Support if you’re self-employed.
Universal Credit payments change if you work more or less
If you get Universal Credit, your payment is based on your earnings from the previous month. So the hours you work and when you get paid can affect how much you get.
If you get more wages than usual, your Universal Credit payment could stop completely. If this happens, talk to your work coach if you need help.
For more information on how Universal Credit is calculated, see our guide How much is Universal Credit?
Find out how to check if you qualify for cheaper bills and travel
Check if you qualify for cheaper bills and travel
You can often get special cheap tariffs when you claim benefits. Switching provider or moving to a new deal can also be a simple way to cut costs.
Cut the cost of gas and electricity
First, check if you qualify for any of these schemes:
Warm Home DiscountOpens in a new window in England, Scotland and Wales – £150 discount on your winter electricity bills.
Affordable Warmth SchemeOpens in a new window in Northern Ireland – a grant that might help if you rent from a private landlord or own your home.
Cold Weather PaymentOpens in a new window in England, Northern Ireland and Wales – an automatic £25 each time the temperate drops to zero degrees or less for seven days, usually between November and March.
Winter Heating PaymentOpens in a new window in Scotland – an automatic fixed payment if you’re getting Universal Credit during a week in November.
You might also be able to get energy efficiency grants to help pay for home improvements, like replacing your boiler and adding insulation.
It’s also worth checking if you can get cheaper energy bills by switching supplier or tariff (the deal you’re on).
You can compare energy deals using comparison sites, like:
It’s usually cheaper to pay by monthly Direct Debit, rather than cash or cheque.
For more help, see our guides:
How to reduce your energy bills – including what to do if you’re on a prepayment meter
Switch to a cheaper broadband and mobile deal
If your contract has ended, you can often make large savings by switching to a cheaper deal.
It’s also worth making sure you don’t pay for high-speed internet you don’t need or mobile data, minutes and texts you won’t use.
First, check if qualify for one of these social tariffsOpens in a new window
Then see if you can beat it. To compare deals, try comparison sites for:
- mobile and SIM only deals, like:
broadband and home phone deals, like:
For more help and information, see our guides:
Get free broadband if you’re looking for work
If you’re a jobseeker, you might be able to get six months of free TalkTalk fibre broadband. Ask your work coach if you can apply for a voucher.
Check if you qualify for cheaper water bills
If you live in England or Wales, it’s worth checking if you can save by switching to a free water meter. This means you’ll pay for the water you actually use rather than an estimate.
You might also qualify for your water company’s social tariffOpens in a new window which could give you a large discount (often 15% to 90%) or means you won’t pay more than a fixed amount each year.
If you’re not sure who your supplier is, you can use Water UK’s find your supplier toolOpens in a new window first.
In Scotland you’ll usually pay for water as part of your Council Tax, or already be on a meter, and in Northern Ireland there are no domestic water charges.
See How to reduce your water bill for full information and ways to cut water usage.
Apply for a Council Tax or Rates discount
As you’re claiming benefits, you might qualify for help paying your Council Tax or Rates.
The discount usually depends on your circumstances, like where you live, how much you earn and if you live with anyone. But it could mean you won’t have to pay anything.
Council Tax Reduction in England, Scotland and Wales
Each local council has its own scheme. You can find details of your local Council Tax Reduction scheme at GOV.UKOpens in a new window
Make sure you apply as soon as you can. Most councils won’t backdate payments unless you have a good reason for not applying straightaway.
Rate Rebate in Northern Ireland
Once you’ve received your first Universal Credit payment, you can apply for Rate Rebate at nidirectOpens in a new window
Set a reminder to apply as soon as you can. If you claim within three months of your first payment date, your Rate Rebate might be backdated.
Check if you can get 50% off travel
If you’re unemployed and live in England, Scotland or Wales, the Jobcentre Plus Travel Discount Card gives a 50% discount on many bus and train tickets for up to three months.
The idea is to help you get to job interviews, but you can use the discount on any journey you take.
To apply, you’ll need to visit a Jobcentre PlusOpens in a new window
Cards are given out on case-by-case basis, but you usually need to have been claiming one of the following benefits for at least three months:
Universal Credit
Jobseeker’s Allowance
Incapacity Benefit
Income Support
Employment and Support Allowance.
Get free or discounted bus travel if you’re disabled
You might be entitled to free or cheaper bus travel if you have a disability.
Check if you qualify:
in England at GOV.UKOpens in a new window
in Scotland at mygov.scot Opens in a new window
in Wales at Transport for WalesOpens in a new window
in Northern Ireland at nidirectOpens in a new window
Find out how to check for ways to boost your income and saving
Check for ways to boost your income and savings
Claiming benefits can mean you qualify for other help and ways to earn more money.
Use our Benefits calculator to check you’re getting everything you’re entitled to
When you applied for benefits or Universal Credit, you’ll have answered questions about your situation. This was to work out how much you’ll get, and the elements you qualify for.
But it’s always worth double checking this was calculated correctly and if it’s up to date. Use our Benefits calculator to see which benefits you should be getting.
Or, for a full benefits check, see Advicelocal to find a benefits specialist near youOpens in a new window
Get a free bonus of up to £1,200 on your savings with Help to Save
A Help to Save account:
lets you save between £0 and £50 each month
is easy-access, so you can take money out whenever you like
- pays a free 50% bonus of up to £600 into your bank account after two and four years – worth up to £1,200 in total.
You still get a bonus if you take money out
The first 50% bonus is based on the highest amount you’ve ever had in the account during years one and two. The second is based on the highest amount you’ve saved on top in years three and four.
This means you’ll still get a bonus on the total amount you’ve saved, even if there’s less in there at the end.
How to apply
You’ll qualify if you’re currently getting either:
Working Tax Credit
Child Tax Credit (and are entitled to Working Tax Credit), or
Universal Credit (and earned a certain amount from paid workOpens in a new window in your last assessment period).
You can apply for a Help to Save account at GOV.UKOpens in a new window or by calling 0300 322 7093 (Monday to Friday, 10am to 6pm).
If you’re getting Universal Credit and have more than £6,000 in savings (including in a Help to Save account), your payment could be affected.
For more information, see our guides:
Check if working more hours could boost your income and pension
If you’re able to, working more paid hours is one way to boost your income. It might also mean you get other work benefits like free money paid into your pension.
If you get Universal Credit, you can work as many hours as you like. But you might get less (or your payment stopped) if you earn more, as it’s based on your earnings from the previous calendar month.
Other benefits are linked to how many hours you work (and your partner, if you have one). This means your benefit payments might be reduced or stopped if you work too many hours, or earn too much.
To check how much you’d gain overall by working more hours, use our Benefits calculator. It has a ‘What if’ tool so you can see what would happen if you or your partner earned more.
You can see the full rules for each means-tested benefit at GOV.UK:
Check if you automatically qualify for other help, like free school meals
By receiving certain benefits, you may now be eligible for more help and support, such as:
free school meals
help with school uniform
free prescriptions, dentist appointments and eye tests
discounts on your heating bills (Warm Home Discount).
To see what you can claim, use the Benefits and financial support toolOpens in a new window at GOV.UK.
What you can get usually depends on where you live and how much you earn.
For more help, see our guide Living on a squeezed income
Help if you’re struggling and need extra money
If you don’t have enough money to live on, or you’re worried you might find it difficult to manage Universal Credit payment, follow these steps.
Get free debt help if you’ve already missed a payment
Use our Debt advice locator tool to find free and confidential debt advice online, over the phone or near to where you live.
A debt adviser will:
treat everything you say in confidence
never judge you or make you feel bad about your situation
suggest ways of dealing with debts that you might not know about
check you’ve applied for all the benefits and entitlements available to you.
It’s important to get free debt advice if you’re worried you’ll miss a payment, already have or are facing any emergency issues, including:
being contacted by bailiffs (sheriff officers in Scotland)
receiving a court summons
having your gas or electricity cut off
having your home, car or goods repossessed.
Use our Bill prioritiser to know which payments to tackle first
If you’re struggling with bills and payments, our Bill prioritiser can help you:
sort out which ones to deal with first
get support and cut costs.
The consequences of missing some types of bills can be more serious than others, so it’s important to tackle them in the right order.
Apply to local welfare schemes for help paying for essentials
Local welfare schemes can give out vouchers to pay for bills and essentials such as:
food
clothing
gas or electricity
broadband and phone
petrol or diesel, and
household items, such as cookers or fridges.
The scheme you can apply to depends on where in the UK you live:
in England, apply to your local council for the Household Support FundOpens in a new window
in Scotland, apply to The Scottish Welfare FundOpens in a new window
in Wales, apply to The Discretionary Assistance FundOpens in a new window
in Northern Ireland apply to The Finance Support ServiceOpens in a new window
For more information, see our guide Where can I get emergency help with money and food?
Ask to be referred to a foodbank for free food
Foodbanks usually offer free food to anyone that has a referral voucher.
They might also give you a voucher for gas and electricity if you’re on a pre-pay meter and can’t afford to top up.
You can ask for a referral voucher by contacting your:
GP
health visitor
support worker
social worker, or
child’s school.
You can also ask the police or a local charity, like:
Advice NIOpens in a new window in Northern Ireland.
You’ll be told which foodbank you can use, but to find your nearest options, see:
For more information, see our guide Where can I get emergency help with money and food?
Check for charity grants and funding
You might qualify for a grant, which is extra money you won’t have to pay back.
To find and apply for help, you can use the:
Ask your work coach for help with job seeking costs
You might be able to get money to help cover certain job-seeking costs, such as:
- travelling to and from an interview
- training courses
- interview clothes, and
- childcare.
It’s up to your work coach to decide if and how they can help. If you do get money, you won’t need to repay it.
It’s called the Flexible Support FundOpens in a new window in England, Scotland or Wales and the
Adviser Discretion FundOpens in a new window in Northern Ireland.
Help if debts are being deducted from your benefits or wages
If you owe money, your benefits payment might be reduced to repay your debts before you receive it. You should receive a letter or message in your online account explaining how much will be taken.
Alternatively, your employer might be asked to make benefit deductions from your wages.
For example, money could be automatically taken to repay:
overpaid benefits, Universal Credit and Tax Credits
hardship payments
budgeting loans or advances
up to three third-party debts and arrears, like:
- electricity, gas and water
- Council Tax
- child maintenance
- rent or service charges
- court fines.
If you’re struggling or worried, speak to a free debt adviser for help and affordable ways to tackle your debt.
For more information and help managing your repayments, you can call:
DWP Debt Management teamOpens in a new window if you live in England, Scotland or Wales, or
Consider an interest-free Budgeting Advance or Loan
Borrowing money can be difficult if you have a low income, as many lenders might think you can’t afford the repayments. And those that may accept you tend to charge expensive interest or fees.
But you might be able to get an interest-free loan from the government if you’ve been getting certain benefits or Universal Credit for at least six months.
This is called a Budgeting Loan (Budgeting Advance if you get Universal Credit) and lets you borrow between £100 and £812 to pay for essentials or unexpected costs. Your future benefit payments are then reduced until the loan is repaid.
For more information and who qualifies, see our guide Budgeting Loans and Budgeting Advances.
If you still need to borrow money, check what you can afford to repay
As a last resort, you might think about borrowing to cope until you get back on your feet. But be aware that even low-cost options could lead to a spiral of uncontrollable costs.
If you’ve tried all the options above and are looking at ways to borrow money, make sure you understand:
exactly how much it will cost you
whether you can afford the repayments.
Don’t apply until you’ve checked if you’re likely to be accepted. Rejected applications can damage your credit file.
For more help and information, see:
Speak to a free hardship adviser
If you need more help or support, you can call a trained adviser for free.
For example they could help you:
prepare for coping with your first monthly payment
make sure your work coach understands your personal circumstances
apply for an advance
get additional financial support.
Who to contact depends on where you live:
In England and Wales, call the Help through Hardship helplineOpens in a new window on 0808 208 2138 (Monday to Friday, 9am to 5pm).
In Northern Ireland, call Advice NIOpens in a new window on 0800 915 4604
In Scotland, contact your local councilOpens in a new window
You can find more help and support with benefits at AdvicelocalOpens in a new window
How to report a change in your circumstances
As your benefits are usually linked to your personal circumstances, you might qualify for more or less if anything changes, like starting a new job, having a baby or moving home. Here’s what to do, including if you’re asked to claim Universal Credit instead of your old benefits.
Follow these steps to work out what you need to do
You must report any changes to your circumstances to make sure you’re paid correctly
If anything in your life changes, you must report it to the office that pays your benefit. For example:
moving home
getting married or divorced
having a baby
being diagnosed with a health condition or disability
changes to your finances, like a salary increase or receiving any extra money.
You can find a list of changes you need to report and contact details at GOV.UKOpens in a new window
If you don’t report it, you might miss out on extra money you’re entitled to. Or you could be paid too much and may need to repay the overpaid benefits plus a £50 fine.
You’ll usually get a letter or message in your online account about any changes to your benefits as a result.
What to do if you’re told to claim Universal Credit instead
When you report a change in your circumstances, you might be told you’ll need to claim Universal Credit to continue getting benefits.
You won’t be moved automatically. Instead you’ll be told when you need to claim Universal Credit by and when your existing benefits will stop.
You can use our Benefits calculator to see how much Universal Credit you could get.
If you have a choice between staying on your current benefits and moving to Universal Credit, seek free advice before your claim. You can use Advicelocal to find a benefits specialist near youOpens in a new window
For more help, see our guide Moving to Universal Credit from other benefits
Help if you need to repay overpaid benefits
If you’ve reported a change in circumstances and have overpaid benefits to repay, speak to a free debt adviser for help deciding how to repay it.
You can also challenge the decision if you don’t agree with anything. See our guide How to appeal a benefits decision for more information.
Your benefits payment is usually reduced to repay overpaid benefits
If you’re still receiving benefits, your payments will usually be reduced to cover the repayments. The reduction will depend on the benefit you receive:
Universal Credit – your standard allowance can be reduced by up to 25%
tax credits – can be reduced by 10% to 100%
other benefits like Income Support and Pension Credit – usually reduced by £13.65 a week for the 2024/25 tax year.
If the payments are too high, or you’d prefer to pay a different way, you can call:
DWP Debt Management teamOpens in a new window if you live in England, Scotland or Wales, or