Millions of households across Scotland and the rest of the UK are adjusting to the shift in seasons which is forcing everyone to tighten their spending, putting an even bigger emphasis on budgets in an effort to stay on top of rising energy bills and soaring inflation.
While most people have reviewed their outgoings and streamlined their finances as much as they comfortably can, it’s worthwhile checking to make sure you are claiming all the available financial support you are entitled to. This includes benefits, Council Tax Reductions and TV licence discounts.
Many people mistakenly believe there is a stigma attached to claiming benefits, but it’s worthwhile noting that an estimated £15 billion state support from the Department for Work and Pensions (DWP) went unclaimed over the last year. The Scottish Government recently launched a new campaign encouraging people to talk about benefits to help encourage others to claim support.
There are several ways to boost your finances, but you will need to invest a bit of time for some of them - however, doing these now could make winter 2022 a bit easier.
Check if you or someone in your household are eligible for a cost of living support payment
You could get up to three different types of payment depending on your circumstances on a certain date or during a particular period.
£324 Second Cost of Living Payment
- If you get a qualifying low income/means-tested benefit and Tax Credits you will receive this payment between November 8 - 23. Tax Credits-only claimants will receive the money shortly after this payment window closes.
- This is paid per claim, so a couple claiming would qualify for one payment
£150 Disability Cost of Living Payment
- If you get a qualifying disability benefit
- This was paid out during September, however, some people are still waiting on payments.
£300 Pensioner Cost of Living Payment
- If you’re entitled to a Winter Fuel Payment for winter 2022 to 2023 this will be added to your entitlement in November or December
- This is paid per claim, so a couple claiming would qualify for one payment
If you think you should have received the first cost of living payment of £326 for those on means-tested benefits, or the £150 disability payment, you can report it missing on GOV.UK here.
Full details about each of these payments can be found here.
Universal Credit
The main one to check your eligibility for is Universal Credit which is designed to help households on a low income or out of work.
How to claim Universal Credit
The UK Government states that a person may be able to get Universal Credit if:
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You are on a low-income or out of work
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You are 18 or over (there are some exceptions if you’re 16 to 17)
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You are under State Pension age (or your partner is)
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You and your partner have £16,000 or less in savings between you
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You live in the UK
If you live with your partner, their income and savings will be taken into account, even if they are not eligible for Universal Credit.
It is worth noting that you won't be able to get any of the means-tested benefits if your capital and savings amount to more than the upper limit of £16,000.
These include:
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Universal Credit
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Income-related Employment and Support Allowance
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Income-based Jobseeker's Allowance
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Income Support
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Housing Benefit
However, your savings and capital (or your partner’s savings, capital and income) are not taken into account when claiming ‘New Style’ Jobseeker's Allowance (JSA) and this particular benefit can be obtained at the same time as Universal Credit - or on its own.
‘New Style’ JSA is a contribution-based benefit. This means you may be able to get it if you’ve paid enough National Insurance (NI) contributions in the two full tax years before the year you’re claiming in.
It is paid fortnightly and if you qualify, you can get 'New Style' JSA for up to 182 days.
If you qualify for both ‘New Style’ JSA and Universal Credit, any ‘New Style’ JSA you receive will be taken into account as income for Universal Credit.
To make a claim for Universal Credit, visit the gov.uk website here and for more information on claiming Jobseeker's Allowance, read more here.
Universal Credit payments (monthly rates shown)
Standard allowance
Single
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Single under 25: £265.31
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Single 25 or over: £334.91
Couple
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Joint claimants both under 25: £416.45
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Joint claimants, one or both 25 or over: £525.72
Personal Independence Payment (PIP)
Who can claim: People over 16 and under State Pension age
How much it’s worth: Between £97.80 and £627.60 every four weeks
What is it: A benefit delivered by the DWP to people with a long-term illness, disability or physical or mental health condition - including an ever-growing range of hidden conditions and long-term Covid.
PIP is non-means tested, tax-free and available to those in and out of work, it can also be claimed on top of other benefits as it is not affected by the benefits cap - find out more here.
Adult Disability Payment (ADP)
This devolved benefit has now replaced new claims for PIP for people living in Scotland. The payment rates and eligibility rules are the same as for PIP, the main difference is the application process.
Find out more about claiming ADP here.
Disability Living Allowance (DLA) / Child Disability Payment (Scotland only)
Who can claim: Children under 16
How much it’s worth: Between £97.80 and £627.60 every four weeks
What is it: DLA claimants in Scotland are now 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.
Find out more about DLA here and Child Disability Payment here.
Young people in Scotland receiving PIP (between 16 and 18), DLA or the Child Disability Payment will also receive the Child Winter Heating Assistance annual payment of £214 to help towards energy bills - find out more about it here.
Scottish Child Payment
Who can clam: Parents with children under six, but from November 14 this is increasing to all children under 16
How much it’s worth: £20 per week, per child, however, from November 14 this is rising to £25 per week, per child.
What is it: Scottish Child Payment helps towards the costs of supporting your family if you are on a low income - find out more here.
Best Start Foods
Who can claim: If you or your partner are getting certain benefits or Tax Credits, or you or your partner are pregnant, or are the main person looking after a baby or child who's the right age for a payment.
How much it’s worth: The payment 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 paid by Social Security Scotland every four weeks on a pre-paid card to buy healthy food including eggs, milk, fruit and vegetables - find out more here.
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.
You cannot get Best Start Grant or Best Start Foods if you only get Child Benefit - 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 - find out more here.
Attendance Allowance
Who can claim: People over State Pension age.
How much it's worth: You will be paid either £61.85 or £92.40 every week.
What is it: A benefit delivered by the DWP that helps with extra costs if you have a disability severe enough that you need someone to help look after you. It can also help you stay independent in your own home longer - find out more about claiming Attendance Allowance here.
Carer’s Allowance
Who can claim: People who spend at least 35 hours a week caring for someone.
How much it's worth: £278.80 every four weeks. In Scotland there are also two additional payments of £245.70 each year as part of the Carer’s Allowance Supplement. The next payment will be in December, to qualify you need to have made a claim for Carer's Allowance on or before October 10, 2022.
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 - find out more about Carer’s Allowance and the supplement here.
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 benefit delivered by the DWP for older people to help with the costs of retirement. Kt 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 - find out more about Pension Credit here.
New claims for Pension Credit made before December 19, 2022 which later turn out to be successful will also qualify for the second cost of living payment of £324.
Benefits Calculators
These are a quick and easy way to identify any benefits you may be entitled to claim.
They are independent and completely confidential, all you have to do is enter personal and financial details about your current circumstances - find out more about benefits calculators here.
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.
Find out more details here.
TV Licence discount or refund
TV Licence rules changed last year which means everyone pays for it, including those on State Pension. The only way to avoid the £159 fee is to be aged over 75 and in receipt of Pension Credit.
People who are registered blind are entitled to a half price TV Licence and may be eligible for 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 - find out more here.
Claim £252 tax break just for being married or in a civil partnership
HMRC recently announced that nearly 1.8 million married couples and those in civil partnerships are using Marriage Allowance to save up to £252 a year in Income Tax,
Marriage Allowance allows married couples or those in civil partnerships to 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.
It means couples can reduce the tax they pay by up to £252 a year and they can backdate their claims for any of the four previous tax years, which could be worth up to a total of £1,220. - find out more here.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook group here or subscribe to our newsletter which goes out three times each week - sign up here.
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