Are You Missing Out on Money You're Entitled To?

Hundreds of thousands of households across the UK could be better off. These households are failing to claim money from the government that they’re entitled to.

Figures from the National Audit Office show that many people are not claiming four benefits in particular. This guide tells you what these benefits are, whether you’re eligible to claim, and how to apply for this extra money.

Council Tax Benefit

Council tax is a major expense for most households. It’s possible, however, to claim help to reduce your council tax bill.

You may be able to obtain council tax benefit if you’re responsible for council tax payments, and your income and savings are low.

You must therefore declare your income and savings before you can receive council tax benefit. This declaration has to include your partner’s money, and basic details of everyone in your household. These details include age and disability status.

Please note that you won’t receive council tax benefit if you and your partner have more than £16,000 in savings.

You can receive an alternative council tax benefit called second adult rebate if you have an adult on a low income in your home. This adult must not be your partner.

Second adult rebate can reduce your council tax bill by up to 25%. You do not have to declare your own income and savings.

To claim council tax benefit or second adult rebate, contact your local council.

Housing Benefit

If you rent your home, and you’re on a low income, you can claim housing benefit. Housing benefit helps cover the cost of your rent.

You can claim housing benefit from your local council at the same time as you claim council tax benefit. You have to give details of your income and savings (and any partner’s) plus information about anyone else who lives with you. You must also provide full details of your rent payments.

It’s worth noting that if you’re under 25 and single, you can only receive housing benefit at the rate of a bedsit, or one room in a shared property. This applies no matter how big your home actually is.

Your council may also refuse you housing benefit if you’re living in the property of a close relative; you’re a full-time student who is not disabled and doesn’t have children; or you have savings greater than £16,000 (although over 60s may still be able to claim in this circumstance).

Other conditions may apply. Your council’s housing benefit application form explains these.

Pension Credit

Anyone aged 60 or over living in the UK may be able to receive pension credit. What matters is the level of you and your partner’s weekly income.

If this income is below a certain amount, you may be able to receive the ‘guarantee credit’ element of pension credit. This is money that boosts your weekly income to an amount set by the government.

Anyone aged 65 or over may also receive the ‘savings credit’ element of pension credit. Once you’re 65, if your income from pensions, work, and savings falls between certain minimum and maximum amounts, your pension credit can increase.

To make a claim for pension credit, contact the Pension Service.

Please note that if you think your income is too high because you receive attendance allowance, exceptionally severe disablement allowance, or war widow’s supplementary allowance, still consider claiming pension credit. The Pension Service ignores these three allowances when making its calculations.

Tax Credits

Tax credits come in two forms: child tax credit, and working tax credit.

90% of families with children can qualify for child tax credit. You can also receive working tax credit if you work but your wages are low. Please note that you don’t need children to be eligible for working tax credit.

Tax credits, like the other benefits listed here, are means-tested. In other words, you must supply details of items such as your income; your working hours; the ages of you and your children; childcare payments; and any disabilities.

Contact HM Revenue and Customs for a claim form.