Mental Health and Benefits Handbook 1st edition - with new materialPart 2: Benefits Chapter 14: Other financial support
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Chapter 14: Other financial support
Note: you could be entitled to extra help beyond the types set out in this chapter. For example, there are schemes that help with health-related costs (like free prescriptions, dental treatment and hospital travel) and schemes to help with the costs of having children (like Healthy Start, Best Start, Sure Start, help with childcare costs and free school meals). To help you identify all the schemes available, see our Cost of Living topic.
1. Discretionary housing payment
A discretionary housing payment (DHP) can be made by your local authority to help you with rent or with certain other housing costs. To apply for a DHP, you must be entitled to help with your rent through universal credit (UC) or housing benefit (HB).
DHPs can be made because your UC or HB does not cover your full rent – for example:
    •due to the local housing allowance 1The maximum amount of universal credit or housing benefit that you can get to help you pay private rent. The allowance varies based on your household size, circumstances and which area you live in. or bedroom tax 2A reduction in the maximum amount of housing benefit you can get, or the maximum housing costs element you can get in your universal credit, if you live in social housing and are regarded as having a spare bedroom(s).;
    •due to deductions being made from your benefit because you live with non-dependant 3An adult, other than a partner, who lives with the person claiming benefit – eg, a grown-up daughter or son. There are some special rules about who is included.;
    •because you are affected by the benefit cap 4The maximum yearly amount of benefits that someone can receive. Not all benefits are included and not all people are affected..
You can also apply for a DHP towards certain one-off costs – eg, if you need rent in advance or a deposit for a new home, or if you have moving expenses.
Your local authority may have a paper application form and/or an online application form for DHPs. Payments are discretionary, which essentially means that they are made on a case-by-case basis. They are made from a cash-limited budget allocated to your local authority. You might be refused a DHP for budgetary reasons even if you make a strong application, or you might be successful but only receive assistance for a short period. Note: If you live in Scotland and are affected by the bedroom tax or the benefit cap, your application for a DHP should be accepted as a matter of course.1gov.scot/news/helping-families-with-their-living-costs
A DHP does not count as income for the purposes of working out your entitlement to means-tested benefits or for the benefit cap.
For more information about DHPs, see CPAG’s Welfare Benefits and Tax Credits Handbook and speak to your local authority.
 
1     gov.scot/news/helping-families-with-their-living-costs »
2. Council tax reduction
You may be able to get your council tax bill reduced under your local authority’s council tax reduction (CTR) scheme. In some areas, this is known as council tax support. You can get help whether you rent or own your home.
Check with your local authority whether you qualify for a CTR. In England and Wales, local authorities may devise their own local schemes which must meet minimum requirements. In Wales, if a local authority does not adopt its own scheme, a default scheme applies. In Scotland, there is a national scheme, administered by local authorities.1s13A LGFA 1992
E CTRS(DS)E Regs; CTRS(PR)E Regs
W CTRS(DS)W Regs; CTRSPR(W) Regs
S CTR(S) Regs; CTR(SPC)S Regs
Note:
    •You need to apply for a CTR. Your local authority may have a paper application form and/or an online application form. If you claim housing benefit for help with rent, it may be possible to claim a CTR at the same time, without filling in a further form. This does not apply when you claim universal credit, so in this situation you must make sure that you put in a separate CTR claim.
    •Your income (including entitlement to means-tested benefits) and your capital 1This includes (but is not limited to) savings, shares, certain lump-sum payments and most property that is not a person’s main home. are generally relevant to your CTR eligibility.
    •CTR is not a social security benefit and does not count as income for the purposes of working out your entitlement to means-tested benefits or for the benefit cap 2The maximum yearly amount of benefits that someone can receive. Not all benefits are included and not all people are affected..
    •CTR is not the same as a council tax ‘discount’ or ‘exemption’ – eg, because you live alone or are a student. You might be eligible to be considered for these as well as for a CTR. See CPAG’s Council Tax Handbook for more details.
 
1     s13A LGFA 1992
E CTRS(DS)E Regs; CTRS(PR)E Regs
W CTRS(DS)W Regs; CTRSPR(W) Regs
S CTR(S) Regs; CTR(SPC)S Regs
 »
3. Budgeting loans and budgeting advances
In some circumstances you can apply for a repayable loan from the DWP. How you do this depends on which DWP benefits you are receiving.
Universal credit
Budgeting advances are extra amounts of universal credit (UC) to help you with expenses - eg, buying essential furniture or household equipment. There are rules about your earnings, capital 1This includes (but is not limited to) savings, shares, certain lump-sum payments and most property that is not a person’s main home. and how long you must have been on means-tested benefits to qualify for a budgeting advance – see gov.uk/guidance/universal-credit-advances#get-a-budgeting-advance.1Regs 12-15 SS(PAB) Regs Budgeting advances are discretionary, and if your application is unsuccessful you do not have a right to appeal. Budgeting advances must be repaid, usually by deductions from future payments of your UC and usually over 12 months.
You start an application for a budgeting advance by speaking to your job centre work coach 2A job centre staff member. Part of their job is to decide your work-related requirements., putting a message on your online journal 3An online record for your universal credit claim. or calling the UC helpline.
The minimum amount of a budgeting advance is £100. The maximum is:
    •if you are single and not responsible for a child, £348;
    •if you are in a couple and not responsible for a child, £464;
    •if you are responsible for a child and either single or in a couple, £812.
Note: budgeting advances are not the same as ‘new claim’ advances of UC (see here).
 
1     Regs 12-15 SS(PAB) Regs »
Other DWP benefits
You may be eligible to apply for a ‘budgeting loan’ from the DWP if you get income support, income-based jobseeker’s allowance, income-related employment and support allowance or pension credit (guarantee or savings credit). You can request a loan to help with several types of expenses – eg, furniture and household equipment, clothes or travelling expenses. The minimum and maximum loan amounts are the same as for a UC budgeting advance (see above). You should apply online at gov.uk/budgeting-help-benefits or in writing on Form SF500, available from gov.uk or the job centre.
4. Support for mortgage interest
If you have a mortgage, the DWP may offer you a secured loan to help with your mortgage interest payments, known as a support for mortgage interest (SMI) loan.1LMI Regs You are only eligible if you are entitled to universal credit, income support, income-based jobseeker’s allowance, income-related employment and support allowance or pension credit, and you have been getting this benefit for at least three months.
If you accept an SMI loan, payments are usually made directly to your mortgage lender on a regular basis. The amount of each loan payment is calculated using a formula and is not necessarily the amount you are liable to pay.
An SMI loan is not a social security benefit and you normally have to repay it, but there are exceptions. There are more details about SMI loans in CPAG’s Welfare Benefits and Tax Credits Handbook.
Getting advice: support for mortgage interest
It is important to get independent legal and financial advice (eg, from a financial adviser or solicitor) before accepting an SMI loan. The information about the loan you get from the DWP or its agent is not independent advice.
 
1     LMI Regs »
5. Local welfare assistance and household support fund
In some circumstances, you can get financial help from a ‘local welfare assistance’ scheme run by the local council or devolved government. These can provide help, for example, towards immediate short-term needs in a crisis or to ease exceptional financial pressure.
In England, the local scheme is at your local authority’s discretion. Check with your local authority to find out what help is available, whether you qualify and how to apply. Note that not all local authorities have a scheme.
In Wales, the Discretionary Assistance Fund offers non-repayable emergency assistance payments and individual assistance payments. You can apply at gov.wales/discretionary-assistance-fund-daf/how-apply.
The Scottish Welfare Fund provides community care grants and crisis grants. The basic rules for the scheme are set by the Scottish government, with each local authority having some discretion. You should apply to your local authority.1Welfare Funds (Scotland) Act 2015; The Welfare Funds (Scotland) Regulations 2016 No.107
The household support fund
The household support fund is a UK government initiative to help people in financial hardship with basic expenses such as food, clothing and energy costs. It was introduced in autumn 2021 and has been extended until 31 March 2024. In England and Scotland, it is administered by local authorities. Application processes and the kinds of financial support offered vary by local authority and it can be a good idea to get information and support from a local advice agency - see advicelocal.uk. In some areas, the household support fund has been rolled into the local welfare assistance scheme (see above) but it is also available from local authorities that do not have a local welfare assistance scheme. In Wales, payments from the household support fund are being administered through the Discretionary Assistance Fund (see above).
 
1     Welfare Funds (Scotland) Act 2015; The Welfare Funds (Scotland) Regulations 2016 No.107 »
6. Cost of living payments
The UK government made ‘cost of living payments’ to certain categories of people during 2022/23 and is doing so again during 2023/24. These payments are not taxable and are not taken into account as income or capital 1This includes (but is not limited to) savings, shares, certain lump-sum payments and most property that is not a person’s main home. for other benefits or tax credits.1SS(AP)A 2023
There are three types of cost of living payments. You can qualify for more than one type.
    •Payments for individuals/households on certain means-tested benefits. There are three payments due in 2023/24: £301 in April and May 2023, £300 in autumn 2023 and £299 in spring 2024. There is a different qualifying date for each payment. See gov.uk/guidance/cost-of-living-payment for details about eligibility and dates.
    •Payment to individuals awarded disability benefits. This payment is £150 in 2023/24. One payment is made for each individual who qualifies for any rate of disability living allowance (DLA), child disability payment, personal independence payment (PIP), adult disability payment, attendance allowance, armed forces independence payment, constant attendance allowance or war pension mobility supplement. So, for example, if you and your partner both get PIP and you are responsible for a child who gets DLA, three payments are made. It is expected that the disability payment will be made in summer 2023.
    •Payment to pensioner households. This payment is £300 in 2023/24, or £150 if you are in residential care. It is likely to be paid in winter 2023 as an increase to the annual winter fuel payment. See gov.uk/guidance/cost-of-living-payment.
Cost of living payments are made automatically into the bank, building society or credit union account into which your benefit or pension is paid. If you think you are eligible for a payment and have not received it (eg, because an appeal or late assessment has led to a delayed decision about your eligibility for a particular benefit), you can report a missing payment online at secure.dwp.gov.uk/report-a-missing-cost-of-living-payment.
 
1     SS(AP)A 2023 »
7. Warm Home Discount
Warm Home Discount is a one-off credit or discount of £150 on your energy bill under the Warm Home Discount scheme. You may be able to get a Warm Home Discount if you get the guarantee credit of pension credit (PC), or you are on a low income and get other qualifying means-tested benefits and meet your energy supplier’s criteria. Note that not all energy suppliers take part in the scheme. For further information, visit gov.uk/the-warm-home-discount-scheme and see your energy supplier’s website. See also CPAG’s Fuel Rights Handbook.
8. Food banks
If you are experiencing severe financial hardship (eg, caused by debt or benefit delays), you may be able to get assistance from a food bank. Some food banks operate on a drop-in basis, while others use a voucher scheme. Food bank vouchers are available from many frontline professionals such as doctors, social workers, job centre staff and some charity workers. You can find further information and contact details for many food banks at trusselltrust.org or foodaidnetwork.org.uk/our-members or by contacting your local authority.
You may also be able to get help with food or meals through local community groups which are part of the FareShare network. See more information at fareshare.org.uk.
9. Help to Save
Help to Save is a UK-wide government scheme offering a top-up to working people on low incomes who open a special type of savings account and pay into it regularly. To be eligible, you must be getting either:1Savings (Government Contributions) Act 2017; The Help-to-Save Accounts Regulations 2018 No.87
    •universal credit (UC) with earnings of at least £722.45 a month (the monthly equivalent of 16 hours a week at the national living wage); or
    •working tax credit (WTC). You must either get WTC at more than a nil rate, or be eligible for WTC and get child tax credit at more than a nil rate.
The most you can pay into your account each calendar month is £50, which is £2,400 over four years. In those four years you can earn up to £1,200 from your savings. See gov.uk/get-help-savings-low-income for more information. You can withdraw money from a Help to Save account at any time, but it will affect the amount of bonus you can get.
 
1     Savings (Government Contributions) Act 2017; The Help-to-Save Accounts Regulations 2018 No.87 »
10. Help from social services
Local authority adult care and children’s services departments have statutory duties and discretionary powers to provide a range of practical and financial help to some families, children, young people, older people, people with disabilities and health conditions, carers, care leavers and asylum seekers. Contact your local authority for information or seek independent advice – see advicelocal.uk.
11. Charities
There are many charities that provide financial help to people in need. For example, some energy and water companies offer schemes to support customers on low incomes or dealing with debt, through independent charitable trusts. Turn2us has details of charities that can provide financial help on its website turn2us.org.uk. In many cases, you can apply for support directly through the website. If you need assistance with this, you can seek independent advice – see advicelocal.uk.