OVER eight million UK households receive means-tested benefits.
But millions more are missing out on the cash help available.
AlamyOver eight million households in the UK receive means-tested benefits[/caption]
So what exactly are means-tested benefits and who is eligible to get them?
What are means-tested benefits?
Some government benefits are means-tested.
Means-tested benefits are awarded based on a person’s financial situation.
They are awarded based on your income and how much capital you have.
As such, means-tested benefits are only available to those who can prove that their income is under a certain amount.
Plus, exactly how much you are entitled to can vary from person to person.
The amount you can receive depends on how big the difference is between your earnings and how much you require to live on.
Which benefits are means-tested?
The means-tested benefits are:
Universal CreditIncome-based jobseeker’s allowanceIncome-related employment and support allowanceIncome supportPension creditTax credits (child tax credit and working tax credit)Housing benefitCouncil tax supportSocial fund (sure start maternity grant, funeral payment, cold weather payment)
To be eligible to receive any of these benefits, you must be able to demonstrate that your total capital is less than a certain amount.
If you apply to receive any of these benefits, your income, savings, and any other capital will be checked to see if you are able to qualify.
There are several benefit calculators you can use to see if you are eligible to receive them and how much you are entitled to.
Charity Turn2us has a free benefits calculator on its website which lets you know whether you are entitled to means-tested benefits.
Entitledto’s free online calculator is another good tool to keep in mind as it works out whether you qualify for various benefits or Universal Credit.
Entitledto’s data also powers benefit checkers one MoneySavingExpert.com and the StepChange website.
However, it’s worth noting that you cannot use these calculators if you are under 18 and they will not give you accurate results if you are a prisoner, a student, living outside the UK, a non-British or Irish citizen, or living permanently in care.
The only benefits which are not means-tested are those awarded to people who cannot work because of a sickness or a disability.
Are means-tested benefits going up?
Millions of households on Universal Credit and other means-tested benefits got a payment boost on April 10.
The government hiked the rates of a number of benefits by 10.1% to try and keep up with inflation.
We’ve listed all the benefits that received a pay boost earlier this month.