The UK benefits system is extensive, covering everything from unemployment and disability to childcare and retirement. Whether you are on a low income, out of work, raising children, or approaching retirement, there is likely a benefit that can help. This guide covers the main benefits available, how much they pay, and who qualifies.
Universal Credit
Universal Credit is the UK Government’s main means-tested benefit for working-age people on a low income. It replaced six separate benefits — Working Tax Credit, Child Tax Credit, Housing Benefit, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, and Income Support — with a single monthly payment.
Your payment is based on your circumstances, including your income, savings, housing costs, and family situation. You can claim whether you are employed, self-employed, or unemployed.
Standard Allowance Rates (2026/27)
| Claimant situation | Monthly amount |
|---|---|
| Single, under 25 | £393.45 |
| Single, 25 or over | £497.25 |
| Joint claim, both under 25 | £533.19 |
| Joint claim, one 25 or over | £617.56 |
Additional Elements
On top of the standard allowance, you may receive extra amounts for:
- Child element — £333.33 per month for the first child, £287.92 for each additional child
- Limited capability for work — £416.19 per month
- Housing costs — based on your rent and local housing allowance
- Childcare costs — up to 85% of costs, capped at £646.22 per month
Universal Credit tapers away at a rate of 55p for every £1 you earn above your work allowance, so you always keep more by working.
Child Benefit
Child benefit provides regular payments to families with children. It is paid by HMRC and is not means-tested — meaning there is no upper income limit to receive it. You can claim for all children under 16 and young people aged 16 to 19 in approved education or training.
Payment Rates (2025/26)
| Child | Weekly amount | Annual amount |
|---|---|---|
| First child | £26.05 | £1,355 |
| Each additional child | £17.25 | £897 |
High Income Child Benefit Charge (HICBC)
If you or your partner earns more than £60,000 per year, you may need to repay some or all of the child benefit through a Self Assessment tax return. The charge starts at 1% of the benefit for every £200 your income exceeds £60,000, reaching 100% at £80,000.
Always claim Child Benefit even if you think you will have to repay it through HICBC. Claiming ensures you receive National Insurance credits towards your State Pension, which protects your future pension entitlement.
Housing Benefit
Housing benefit helps people on low incomes pay their rent. For most working-age claimants, housing cost support is now included within Universal Credit rather than claimed separately. However, if you have reached State Pension age, you may still be able to claim housing benefit directly from your local council.
The amount you receive depends on your local housing allowance rate, your household income, and your savings. If you have more than £16,000 in savings, you will not be eligible.
Personal Independence Payment (PIP)
PIP is a benefit for people aged 16 to State Pension age who have a long-term disability or health condition that affects their daily living or mobility. It is not means-tested — you can claim it regardless of your income, savings, or whether you are working.
Payment Rates (2026/27)
| Component | Standard rate | Enhanced rate |
|---|---|---|
| Daily living | £72.65/week | £108.55/week |
| Mobility | £28.70/week | £75.75/week |
You may receive one or both components depending on your needs. The assessment is based on how your condition affects you, not the condition itself. You will need to attend a face-to-face, phone, or video assessment unless your condition is terminal.
Attendance Allowance
Attendance allowance is for people who have reached State Pension age and need help with personal care because of a disability or health condition. Unlike PIP, it is only available to people aged 65 and over.
Payment Rates (2026/27)
| Rate | Weekly amount | Annual amount |
|---|---|---|
| Standard | £72.65 | £3,778 |
| Enhanced | £108.55 | £5,645 |
You do not need to be receiving care to claim — you just need to need it. Attendance allowance is tax-free and not means-tested, so your income and savings do not affect your entitlement.
Pension Credit
Pension credit tops up the income of people who have reached State Pension age and are on a low income. It can be a gateway to other benefits, including help with housing costs, council tax, and free NHS dental treatment and eye tests.
Guarantee Credit Rates (2026/27)
| Situation | Weekly amount |
|---|---|
| Single | £218.15 |
| Couple | £332.95 |
If your weekly income is below these amounts, guarantee credit tops it up to the full amount. Savings above £10,000 may reduce your payment through the savings credit element.
Many people do not claim pension credit even though they are entitled to it. If your income is low, check your eligibility — it could be worth thousands of pounds per year in additional benefits.
Statutory Sick Pay (SSP)
Statutory sick pay is paid by your employer when you are too ill to work. It is available to employees who earn at least the lower earnings limit per week and are off sick for four or more consecutive days.
- Weekly rate: £116.75
- Maximum duration: 28 weeks
Some employers pay more than the statutory minimum through contractual sick pay schemes. Check your employment contract for details.
Maternity Pay
Statutory maternity pay is available to employees who have worked for their employer for at least 26 weeks by the end of the 15th week before the expected week of childbirth.
Payment Structure
| Period | Payment |
|---|---|
| First 6 weeks | 90% of average weekly earnings (no upper limit) |
| Next 33 weeks | £184.03 per week or 90% of average weekly earnings (whichever is lower) |
You can also get maternity allowance if you are not eligible for statutory maternity pay — for example, if you are self-employed or have recently stopped working.
Jobseeker’s Allowance (JSA)
Jobseeker’s allowance is for people who are unemployed and actively looking for work. Contribution-based JSA is based on your National Insurance contributions over the last two tax years and is not means-tested.
Weekly Rate (2026/27)
| Age | Weekly amount |
|---|---|
| Under 25 | £71.70 |
| 25 or over | £71.70 |
If you are claiming income-based JSA through Universal Credit, the payment is included in your Universal Credit standard allowance.
Worked Example: Single Parent With Two Children
Consider a single parent aged 28, working 16 hours per week at £10 per hour, with two children under 16.
Income and Earnings
- Weekly earnings: 16 hours x £10 = £160
- Monthly earnings: £160 x 52 / 12 = £693
Universal Credit Calculation
-
Standard allowance (single, 25+): £497.25
-
Child element (first child): £333.33
-
Child element (second child): £287.92
-
Total standard elements: £1,118.50
-
Work allowance (with children): £404.00
-
Earnings above work allowance: £693 - £404 = £289
-
Taper deduction (55%): £289 x 0.55 = £158.95
-
Monthly Universal Credit: £1,118.50 - £158.95 = £959.55
Other Benefits
- Child Benefit: £43.30 per week = £2,252 per year (£187.67 per month)
- Free childcare: 30 hours per week for 38 weeks for each child
- Council tax reduction: likely full reduction depending on local authority
Total Annual Support
| Benefit | Annual amount |
|---|---|
| Universal Credit | £11,515 |
| Child Benefit | £2,252 |
| Free childcare (estimated value) | £5,000+ |
| Total | £18,767+ |
This example shows how benefits work together to provide significant support for low-income families.
Tips for Maximising Your Benefits
- Check your eligibility at gov.uk/benefits-calculator — the free calculator estimates what you can claim based on your circumstances.
- Always claim Child Benefit — even if you have to repay it through HICBC, you receive National Insurance credits that protect your State Pension.
- Do not ignore Pension Credit — it is a gateway to dozens of other benefits, including free TV licences, council tax discounts, and NHS help.
- Seek advice from Citizens Advice — they can help you navigate complex claims, challenge decisions, and ensure you receive everything you are entitled to.
- Keep records of all correspondence — if you need to appeal a decision, having written records strengthens your case.
- Report changes promptly — changes in income, household, or circumstances can affect your payments. Report them to avoid overpayments you may have to repay later.