Benefits: what financial help is available for UK households in the New Year - including Child Benefit

• The cost of living crisis in the UK is leaving many households struggling
• The Household Support Fund offers grants to help with food, energy and essential costs
• Other financial aid options include Universal Credit, Council Tax Reduction and the Warm Home Discount
• Food vouchers, food banks and family benefits like Child Benefit and Healthy Start can also provide crucial support

As we enter the New Year, many people in the UK face ongoing financial difficulties due to the cost of living crisis.

Inflation, rising energy prices, and increased costs for food and essentials have stretched household budgets to their limit, leaving many unsure where to turn for help.

Fortunately, there are various financial aids and benefits available that can provide some relief.

Whether you’re struggling to pay bills, buy groceries, or manage your rent, there are resources and schemes that could offer support during this challenging time.

Household Support Fund

One such vital resource is the Household Support Fund (HSF), a government initiative designed to help households in need.

The fund, introduced by the government in 2021, is one of the most crucial schemes designed to provide direct support to those struggling to cover essential costs.

It provides discretionary grants to households facing financial hardship, with a particular focus on helping with food, energy bills and other essential living costs.

Local councils administer the HSF, so the amount of financial help available and the application process may vary depending on your location. To apply, you need to contact your local authority, who will assess your eligibility.

Typically, the scheme is aimed at families with children, older people on low incomes and vulnerable individuals in need of urgent financial assistance. If eligible, you may receive a grant or voucher to help with your living costs.

It's worth noting that applications for the HSF are generally more straightforward than other forms of financial aid, as councils aim to make the process as accessible as possible.

For more information on the Household Support Fund, head to the Government’s website

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Universal Credit

Universal Credit is a key benefit designed to support those on low incomes or who are unemployed. It’s available to individuals and families who meet certain income and savings criteria.

Universal Credit can help with basic living costs, including rent, and is often a lifeline for those who have lost their job or have seen their working hours reduced.

One of the most significant benefits of Universal Credit is its flexibility: it is adjusted monthly based on your income and circumstances. The application process is entirely online and can be done through the official government website.

While the process can be lengthy, once your claim is approved, the payments can provide vital support, especially for those who have little or no income.

For more information on claiming Universal Credit, head to the Government’s website

Council Tax Reduction

Another form of financial aid that can help those in need is the Council Tax Reduction scheme. Many local authorities offer reductions in Council Tax for people on low incomes.

If you’re struggling to pay your Council Tax, you may be eligible for a discount or even an exemption, depending on your circumstances.

To apply for a reduction, you’ll need to contact your local council and provide details of your income and household situation.

The amount of reduction available will depend on factors such as the size of your household, your income level, and whether you live alone or with others who also need assistance.

This is a quick and accessible form of support that can relieve pressure on monthly budgets.

For more information on applying for a Council Tax Reduction, head to the Government’s website

Food vouchers and banks

For many households, the rising cost of food is one of the most challenging aspects of the cost of living crisis. If you’re struggling to buy essential groceries, there are several options available to help.

Food vouchers are offered through some local councils, charities, and non-governmental organisations. These vouchers can be used to buy food from supermarkets or other participating stores.

In addition, food banks are a valuable resource for those in immediate need of food supplies. The Trussell Trust, along with other local food banks, provides food parcels to those facing financial hardship.

To access a food bank, you typically need to be referred by a local organisation or authority, such as a GP, social worker or council.

Warm Home Discount

Energy costs have skyrocketed in recent years, leaving many households struggling to keep up with their bills, particularly during the winter months.

The Warm Home Discount is a government initiative that provides a one-off discount on electricity bills for those on low incomes.

The discount is available to eligible households, including those on means-tested benefits or receiving the Guarantee Credit element of Pension Credit.

You don’t need to apply for the Warm Home Discount if you automatically meet the eligibility criteria – your energy supplier will apply the discount for you.

If you’re unsure whether you qualify, it’s worth contacting your energy supplier directly to find out.

For more information on the Warm Home Discount, head to the Government’s website

Child Benefit and other family support

For families with children, financial support is also available through benefits such as Child Benefit and various tax credits.

Child Benefit is a tax-free payment made to parents or guardians of children under 16 (or under 20 if they stay in education or training).

Even if you don’t currently receive Child Benefit, it’s important to check if you’re eligible for this form of support, as it can make a real difference in managing family expenses.

Other forms of support, such as the Healthy Start scheme, which provides vouchers for free fruit, vegetables and milk, may also be available to pregnant women and families with young children on low incomes.

If you're navigating financial challenges or have used any of these support options, we’d love to hear from you! Share your experiences, questions or tips in the comments section.