Welfare Benefits and Tax Credits Handbook 2023/24Part 5: Other benefitsChapter 37: Social fund payments 6. Tax, other benefits and the benefit cap
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Welfare Benefits and Tax Credits Handbook 2024/25

6. Tax, other benefits and the benefit cap
Social fund loans and payments are not taxable.
They are disregarded as income and capital for means-tested benefits and tax credits, and do not affect entitlement to non-means-tested benefits.
In some cases, there is a limit on the total amount of specified benefits you can receive (the ‘benefit cap‘). Social fund loans and payments are not one of the specified benefits. The benefit cap only applies if you are getting universal credit or housing benefit.
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