Did you know that the UK government provides benefits when you have a low income? That’s right, there are many benefits provided to raise the overall poverty level of the country and stimulate the economy. But what are they exactly?
That is exactly what we are here to answer. In this blog, we will provide you with a list of benefits that you can apply for if you have a low income. These benefits include exemptions from tax, utility support, and housing support. Read till the end to learn about these eligible benefits when you have a low income. Let’s begin!
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UK Government Benefits When You Have a Low-Income
There are countless benefits when you have a low income that you can apply for in the UK. The UK government provides these benefits to ensure that poverty levels are low. In addition, if unemployment and poverty levels rise, it leads to higher crime levels and a stagnated economy. Following are some of the benefits of having a low income:
1. Universal Credit
Universal credit is a monthly payment given to residents of the UK who have a low income. The payment is paid twice if you are living in Scotland. To be eligible for this allowance, your employment status doesn’t matter. You just need to be living in the UK, over 18 years old, and under the pension age. In addition, you should have less than £16,000 in money, savings, and investments.
If you are under 25 and single, this scheme gives you a monthly allowance of £292.11. The monthly allowance for single adults over 25 is £368.74; however, the rate for couples is different. In the event that both partners are under 25, they will receive a total of £458.51. But if one of the partners is older than 25, the monthly payment goes up to £578.82.
2. Housing Benefit
Housing benefits are provided to those who are struggling with proper shelter. This is among the top benefits when you have a low income. To be eligible for this scheme, you must have reached the State Pension age. In addition, you must be living in supported, sheltered, or temporary housing.
The amount you receive under this scheme is determined by a number of factors. The government determines how much money you should receive based on the location and type of rental home you have. The money is deposited into your rent account rather than being given to you in cash.
3. Support for Mortgage Interest (SMI)
Support for Mortgage Interest, or SMI, is a programme initiated by the government for homeowners. To be eligible for this, you must already be receiving an income support benefit such as Universal Credit or Pension Credit. The time that it takes for you to get this support depends on which primary benefit you are claiming.
Under SMI, you get financial support for paying interest up to £200,000 on your loan or mortgage. However, if you are claiming Pension Credit or started qualifying for another benefit before January 2009, when you were below the pension age, you will only receive up to £100,000. Nevertheless, if you are getting SMI and move to Pension Credit within 12 weeks of ending other benefits, you will still get an interest payment support of £200,000.
4. Council Tax Reduction
Council Tax Reduction provides a huge opportunity, as it can be reduced by 100 percent if you meet the criteria. To be eligible. You must have a low income and be claiming other income-support benefits. Whether you get the benefit or not depends on your circumstances and household income. Number of children and adults living in the house.
5. Warm Home Discount Scheme
Benefits when you have a low income also cover utility bills. Among these is the Warm Home Discount Scheme, which can reduce your electricity bill for the winter season by £150. It is important to remember that the months counted under the winter season are October 2023 to March 31, 2023.
The eligibility criteria for residents of the UK are simple. Firstly, you must be getting the Guarantee Credit from the Pension Credit. In addition, you must have a low income and high energy costs.
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Let’s Sum it Up!
There are many benefits when you have a low income in the UK. The government provides these benefits to stimulate the economy while elevating the poverty rate. You can also benefit from these schemes if you have a low income.
These benefits when you have a low income include Universal Credit, Housing Benefits, and Reduction in Council Tax. In addition, you may also be eligible for Support for Mortgage Interest as well as the Warm Home Discount Scheme. Each scheme has different criteria and pays different amounts to the applicants. You should read the eligibility criteria in detail before applying.
We at Accotax understand that government requirements can be hard to understand; therefore, we are always here to help. Click here, and we’ll get back to you ASAP!