Turn2us - to access benefits & grants.

Introduction to benefits

Applies to:  England, Wales, Scotland and Northern Ireland

Welfare benefits are paid to make sure that there is a minimum standard of living that no one should fall below. 

They can help you if you:

• are on a low income
• are out of work
• have children
• are pregnant
• are sick or disabled
• have been bereaved
• are a carer.

There are basically two sorts of benefits:

• Means–tested benefits. These are paid even if you have not paid enough national insurance contributions.  But you will not get them if your income and/or savings are above a certain amount
• non means-tested benefits.   You have a right to these benefits if you paid enough national insurance contributions.  It does not matter what other money you have. 

Our information gives you brief details of all the main benefits, both means-tested and non means-tested.  We explain who has the right to claim which benefit and how to make a claim. 

Who administers benefits?

Different organisations administer different benefits.

• Most benefits are paid by a Government department, for example, the Pension Service, the Department for Work and Pensions or HM Revenue and Customs
• Some benefits are paid by your local council
• Your employer pays some benefits, then claims the money back from the Government.

Unclaimed benefits and backdating

The benefits system is very complicated and many people do not know what they are entitled to.  It is estimated that billions of pounds of benefits go unclaimed each year.  Even very small increases in the money you have coming in could make a big difference to you.  Remember if you have the right to a benefit, you might be able to backdate your claim.  

Savings and benefits

Savings count for some benefits, but not for others.

Non-means tested and contributory benefits: for these benefits it does not matter how much money you have in savings. Whether you qualify for them or not will depend on other factors, e.g. whether you have a dependent child for Child Benefit; a disability that means you have particular care or mobility needs for Disability Living Allowance; or if you have the right amount of national insurance contributions for contributory Jobseeker's Allowance.

Means-tested benefits: the amount of savings you have does matter for these benefits and you may be disqualified from getting the benefit if you have savings over a certain amount. The rules vary depending on the benefit you are applying for and your age. See examples below:

Under Pension Credit Age

Example - Income Support

When claiming Income Support, savings of up to £6,000 will be ignored. If you have savings between £6,000 and £16,000 you will be assumed to have some income from these savings (tariff income, £1 for every £250 or part of £250 in savings) and this will affect how much you might be able to claim in Income Support. You won't qualify for Income Support at all if you have more than £16,000 in savings.

Over Pension Credit Age

Example - Pension Credit

When claiming Pension Credit, there is no upper limit on savings over which you won't qualify for benefit. Any savings of up to £10,000 will be ignored. However, you will be assumed to have £1 of income for every £500 over this threshold and this will affect the amount you might be able to claim in Pension Credit.

Tax Credits: You are not disqualified from getting Tax Credits just because you have savings. The amount you have in savings is ignored completely when deciding how much you can claim in Tax Credits, but they will take into account the amount of taxable income you get from your savings, such as the interest you receive on savings in a bank account.

Further help

It can be complicated to work out if you qualify for some benefits. Turn2us Benefit Checker can help you calculate your eligibility.

You can get more information about each welfare benefit from the Government's website, Directgov, including the organisation responsible for each benefit and where to get more advice. 

Information about benefits is available in a number of community languages and different formats, for example, in large print or Braille.  Also if you need an interpreter to help you talk to someone in a government department or your local council, they should provide this.  You will need to contact the benefits office directly to find out about getting this help.

Checking your benefit entitlement

The Turn2us website host a Benefits Checker that helps people ensure that they are receiving all the welfare benefits they are entitled to.

Start Benefits Checker

This information has been produced by Citizens Advice.

Link to Frequently Asked Questions (FAQs) about Benefits

Last updated: 14 April 2011