Government support

There are a number of ways to uplift your earnings, which you can learn more about in our video about side hustles. But as well as using your skills, you can also check if you’re entitled to any benefits. Did you know that most benefits are paid to people in work? There are a range of benefits available for each stage of your life or circumstances. You can check out the government website to see what benefits you are entitled to. Remember, these benefits are here to help you.

Some people pride themselves on being able to work and earn without any support from the government, but the majority of benefit recipients are people who are in some form of work. Benefits are not just for those unable to earn. They’re there to support people in hard times. If you’re experiencing financial hardship, it is always worth exploring if you could be entitled to any additional government benefits, such as Universal Credit.

Let’s meet Brian. Brian is a solo parent working a few evening shifts as a cleaner each week so he can be home for his children after school. Brian checks the government website and uses a benefits calculator. He finds out he’s eligible for Universal Credit and childcare support he can use during the holidays, which gives him the option to pick up an extra shift or study during the day. This gives Brian more income and flexibility without needing to work full-time, but if his earnings increase, some benefits may reduce, so he will need to stay on top of how it all works together. You can check what you’re entitled to on gov.uk or by speaking to a local advice service.

If your income is low or your circumstances are challenging, you might be entitled to extra help, such as support for housing and living costs. Universal Credit, or UC, is a single monthly payment from the government to help with living costs. It was brought in to replace six older benefits like jobseeker’s allowance, housing benefit and tax credits. So instead of applying for lots of different benefits, you just apply once for UC. You may be able to get it if you’re on a low income or out of work, you’re over 18, under state pension age, live in the UK and have less than £16,000 in savings.

The amount you get depends on your situation and things like whether you have children, a partner, a disability or rent to pay. If you earn money from work, your UC usually goes down, but you can still get some support. Payments normally come once a month, straight into your bank account. If you live with a partner, you make one joint claim, and most people need to show they’re looking for work unless they can’t because of caring duties, illness or disability.

Here’s a quick example. Alex is 25, works part-time earning £600 a month, and pays £500 rent. His UC includes a standard allowance which helps with rent, which comes to £868.74. Because Alex earns wages, his UC is reduced slightly. In the end, he gets £747 in UC, plus his £600 wages. That means he has about £1,347 a month to live on, more than double what he’d have without UC. This shows how UC helps top up wages and cover essentials.

Millions go unclaimed in benefits each year. If your income is low or your circumstances are tough, it’s always worth checking what benefits you might be entitled to. They’re there to help you.