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Ahead of the Department for Work and Pensions (DWP) planned benefit cuts, families receiving Universal Credit are being offered numerous free perks and additional cash benefits. Some of these offers may be new to many families, potentially providing much-needed financial support.
These planned cuts, under the Labour Party government, are expected to be voted on next month. The Universal Credit and Personal Independence Payment Bill proposes freezing incapacity benefits at £423.27 for existing claimants from 2026-27, while reducing it to £217.26 for new claimants. Nearly 3 million people are projected to be affected by these changes by the end of the decade.
However, before these cuts are implemented, the government is offering several new benefits aimed at providing immediate financial relief to struggling families.
Understanding the Reforms and Their Justification
In defense of the planned reforms, Work and Pensions Secretary Liz Kendall emphasized the necessity of these changes to ensure the social security system’s sustainability. She stated:
“Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. This legislation represents a new social contract, focused on compassion, opportunity, and dignity.”
According to Kendall, these reforms will provide peace of mind to families while fixing a system that, ideally, supports those who can work and protects those who cannot.
Free Perks and Cash Assistance for Universal Credit Families
1. Pregnancy Grants – £500
The Sure Start Maternity Grant offers a £500 one-time payment to help cover pregnancy-related expenses. This grant is available to eligible claimants expecting their first child or those expecting twins/triplets while already having children.
- Eligibility: Claimants must apply within 11 weeks of the due date or up to six months after the birth.
- How to Apply: Complete the Sure Start Maternity Grant (SF100) claim form.
2. Healthy Start Scheme – £442
The Healthy Start Scheme helps parents with young children by providing a payment of up to £442. This benefit is aimed at assisting with the costs of essential food items.
- Eligibility: Available to families on Universal Credit or Tax Credits with a child under 4 or for women over 10 weeks pregnant.
- How it Works: A prepaid card is provided, which is topped up weekly and can be used at supermarkets for fruit, vegetables, and milk.
3. Help with Rent – £2,578
Claimants of Universal Credit can apply for a Discretionary Housing Payment (DHP), which helps cover additional rent costs, including shortfalls or deposits.
- How to Apply: This payment doesn’t need to be repaid and can help with rent deposits, rent in advance, or covering rent shortfalls if moving homes.
4. Childcare Costs – £1,739
Families on Universal Credit can claim back 85% of their childcare costs, up to a maximum of £1,739 for two or more children, as long as the provider is registered.
- How it Works: Provide evidence of childcare costs, and the claim can be made up to three months in advance.
- Eligibility: The payment is based on the hours worked, and funds are usually provided after the childcare service has been rendered.
5. Free School Uniforms – £200
Many councils provide grants for free school uniforms at the start of each school year. The amount varies, so families need to check with their local councils to determine availability.
6. Free School Meals – £500
Starting in September 2026, all children of parents on Universal Credit will be entitled to free school meals. This initiative is expected to help parents save £500 annually on school meal costs.
7. Saving Bonus – Up to £1,200
The Help to Save scheme offers families on Universal Credit the opportunity to save £50 per month, with the government matching 50% of the savings. Over four years, this could total up to £2,400 in savings, with an additional £1,200 bonus for those who reach the maximum savings.
As the Labour Party government moves forward with its planned benefits cuts, these perks offer essential support for families on Universal Credit.
Whether it’s through pregnancy grants, help with childcare costs, or savings opportunities, the current offer helps ease the financial strain many families face.
However, families need to act quickly to take advantage of these benefits before potential cuts take effect in the near future.
FAQs
How can I apply for the Sure Start Maternity Grant?
To apply for the Sure Start Maternity Grant, you must complete the SF100 claim form within 11 weeks of your due date or up to six months after your baby is born.
Who is eligible for the Healthy Start Scheme?
The Healthy Start Scheme is available to families on Universal Credit or Tax Credits with a child under the age of 4 or women who are over 10 weeks pregnant.
How much can I claim for childcare costs through Universal Credit?
You can claim up to 85% of your childcare costs, with a maximum of £1,014 for one child and £1,739 for two or more children. The claim is subject to providing evidence from a registered childcare provider.