According to an LV= tracker, over 40% of people in the UK currently expect their financial situation to worsen across the next three months.
In a previous survey conducted in March, 44% of respondents stated that their finances had already diminished in recent weeks, with 58% saying that their monthly costs have risen.
Those over the State Pension age in particular had their spending increased, with 65% of retirees revealing that their shopping costs have risen in the last three months.
READ MORE — Glasgow hospital slammed for 'cardboard' chicken nuggets and chips dinner
The State Pension — as well as other benefits — rise by 3.1% this month, but inflation may hit a 40-year high of 8.7% by the end of the year.
Managing director of protection, savings and retirement at LV= Clive Bolton said: "The results of the latest LV= wealth and wellbeing monitor highlight how the finances of millions of people are being squeezed by the large rise in the cost of living.
"Rising energy prices are becoming a significant problem for many people, particularly those who are retired.”
In an effort to help households across Scotland save money and increase their income, the Daily Record compiled a list of things to check.
Benefits
Those who are worried about their financial situation should make sure that they are claiming all of the money they are eligible for.
Many people are unaware that they qualify for benefits from the the Department for Work and Pensions (DWP), and approximately £15 billion went unclaimed last year.
Universal Credit
Universal Credit is a DWP benefit intended to help people who are on a low income or unemployed.
Work allowance rules and the taper rate were recently updated, and over 500,000 people may now be eligible for the sum.
How to claim Universal Credit
The UK Government states that a person may be able to get Universal Credit if:
You are on a low-income or out of work
You are 18 or over (there are some exceptions if you’re 16 to 17)
You are under State Pension age (or your partner is)
You and your partner have £16,000 or less in savings between you
You live in the UK
If you live with a partner, their income and savings will be considered even if they do not qualify for Universal Credit.
Important to note is that you will not be eligible for any means-tested benefits if your capital and savings total over £16,000.
These include:
Universal Credit
Income-related Employment and Support Allowance
Income-based Jobseeker's Allowance
Income Support
Housing Benefit
Neither your savings or capital, or your partner's, are taken into consideration when applying for ‘New Style’ Jobseeker's Allowance (JSA), which can be claimed alongside Universal Credit or on its own,
‘New Style’ JSA is a contribution-based benefit, meaning it is available to those who have paid enough National Insurance (NI) contributions in the two years prior to a claim
It is paid every two weeks and if you qualify, you can get 'New Style' JSA for up to 182 days.
If you are eligible for both ‘New Style’ JSA and Universal Credit, any ‘New Style’ JSA you receive will be taken into account as income for Universal Credit.
Universal Credit payment rates (monthly rates shown)
These payment rates will increase on April 11.
Standard allowance
Single
Single under 25: £257.33
Single 25 or over: £324.84
Couple
Joint claimants both under 25: £403.93
Joint claimants, one or both 25 or over: £509.91
Personal Independence Payment (PIP)
Who can claim: People over 16 and under State Pension age
How much it’s worth: Between £94.80 and £608.60 every four weeks
What is it: A benefit administered by the DWP intended for people with a disability or long-term physical or mental health condition.
It is non-means tested, tax-free and both those in and out of work can apply.
It can also be claimed on top of other benefits as it is not affected by the benefits cap.
Disability Living Allowance (DLA) / Child Disability Payment (Scotland only)
Who can claim: Children under 16
How much it’s worth: Between £94.80 and £608.60 every four weeks
What is it: People in Scotland claiming Disability Living Allowance are being transferred from DWP to the new devolved benefit, Child Disability Payment being delivered by Social Security Scotland.
Both benefits pay the same rates and have the same eligibility criteria for PIP.
Young people between 16 and 18 in Scotland receiving PIP, DLA or the Child Disability Payment will also be given the Child Winter Heating Assistance annual sum of £202 to help with energy bill costs.
Best Start Foods
Who can claim: If either you or your partner claim certain benefits or Tax Credits, or are pregnant, or are the primary guardian looking after a child who is eligible for a payment
How much it’s worth: It is worth £18 during pregnancy and for any children between one and three-years-old. It is £36 for children under the age of one.
What is it: A benefit administered by Social Security Scotland each four-week period on a pre-paid card to buy healthy food including eggs, milk, fruit and vegetables.
Best Start Grants
Who can claim: Parents and carers on low incomes.
What is it and how much is it worth: It is made up of three separate payments - the Pregnancy and Baby Payment is - a one-off payment of £606 for a first child or £303 for a second or later child. The Early Learning Payment is a one-off payment of £252.50 if your child is between 2 and 3 1/2 years old. The School Age Payment is a one-off payment of £252.50.
If you only receive Child Benefit, you will not be eligible for Best Start Grant or Best Start Foods — you must still be getting one of the benefits or payments from this list to be able to get Best Start Grant or Best Start Foods.
Attendance Allowance
Who can claim: People over State Pension age.
How much it's worth: You will be paid either £60 or £89.60 every week.
What is it: A DWP payment intended to help with the extra costs associated with severe disabilities or health conditions that mean you require help. It can also help you stay independent in your own home longer.
Carer’s Allowance
Who can claim: People who spend at least 35 hours a week caring for someone.
How much it's worth: £270 every four-week period. For those in Scotland, there are an extra two payments of £231.40 per year as part of the Carer’s Allowance Supplement. The next payment will be in June, and to be eligible you must apply for Carer's Allowance before April 11.
What is it: A benefit for people who help someone with washing and cooking, taking them to appointments or helping with household tasks such as managing bills and shopping.
Pension Credit
Who can claim: People claiming State Pension.
How much it's worth: The figure is determined by a number of factors, including savings, but is potentially worth up to £3,300 per year.
What is it: A DWP benefit intended for elderly people to assist with retirement costs. It includes additional discounts including a free TV Licence for those over 75 (worth £159), Council Tax Reduction (worth £1,000 to £2,000 per year), Want Homes Discount (worth £140) and more.
Benefits Calculators
These can be used to quickly and easily find out which benefits you may be eligible for.
They are independent and completely confidential, all you have to do is enter personal and financial details about your current circumstances.
Other ways to boost your income
Council Tax Reductions, Discounts and Exemptions
Council Tax is paid in 10 or 12 equal monthly instalments to your local council, however, there are a number of ways to reduce the cost of this annual bill.
These include:
- If you live alone
- If you are disabled
- If you live with someone under 18 or a student
- If you are a carer
- If there are major changes to the value of your home
In most cases, reductions in your Council Tax bill could be backdated, so don’t delay making an enquiry.
TV Licence discount or refund
TV Licence regulations were updated in 2021, and as a result everybody now pays for it — including those receiving the State Pension.
Only those over the age of 75 and who claim Pension Credit are able to avoid the £159 fee.
Those who are registered blind are able to 50% off their TV Licence and may be entitled to a refund. When someone with a severe sight impairment applies for a TV Licence they are required to submit evidence of their disability - a blind registration letter is the most common form - and from that TV Licensing may identify an overpayment, especially if you’ve been paying by direct debit, and issue a refund.
Claim £252 tax break just for being married or in a civil partnership
HMRC recently revealed that almost 1.8 million married couples, as well as those in civil partnerships, are saving as much as £252 per year in Income Tax through Marriage Allowance.
Marriage Allowance lets married couples or those in civil partnerships share their personal tax allowances if one partner earns an income under their Personal Allowance threshold of £12,570 and the other is a starter, basic or intermediate rate taxpayer.
They can transfer 10 per cent of their tax-free allowance to their partner, which is £1,260 in 2023/23.
As a result, couples can lower the tax they pay by as much as £252 per year, and can also backdate their claims for any of the four previous tax years, which could be worth up to a total of £1,220.
