This section of the website lists most state benefits, with links to further information about each of them. Under each heading we also show if the benefit is taxable or non-taxable and whether it counts as income for tax credit claims.
Armed forces independence payment
Attendance allowance
Bereavement allowance
Bereavement payment
Budgeting loan
Carer’s allowance
Child benefit
Child tax credit
Christmas bonus
Cold weather payment
Community care grant
Council tax reduction
Crisis loan
Disability living allowance
Discretionary housing payment
Education maintenance allowance
Employment and support allowance – contribution based
Employment and support allowance – income related
Funeral payment
Guardian’s allowance
Healthy start
Help with health costs
Housing benefit
Incapacity benefit
Income support
Industrial injuries disablement benefit
Jobseeker’s allowance – contribution based
Jobseekers allowance – income based
Maternity allowance
Pension credit
Personal independence payment
Reduced earnings allowance
Retirement allowance
Severe disablement allowance
State retirement pension
Statutory adoption pay
Statutory maternity pay
Statutory paternity pay
Statutory sick pay
Sure start maternity grant
Universal Credit
Vaccine damage payment
War disablement pension
War widow’s or widower’s pension
Widowed parent's allowance
Winter fuel payment
Working tax credit
What is it?
A new benefit introduced from 8 April 2013 and is for members of the Armed Forces who have been seriously injured as a result of military service since 2005.
Where can I find more information?
GOV.UK
Is it taxable?
The Armed Forces Independence Payment is non-taxable.
Is it income for tax credits?
It is not counted as income for tax credits but if you meet certain other conditions it may help you qualify for disability or severe disability elements of working tax credit.
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What is it?
Attendance allowance is a non-means tested benefit for those aged 65 or over, paid by the Department for Work and Pensions (DWP). It is paid to those who need help with personal care.
Where can I find more information?
GOV.UK
Age UK
Turn2Us
Is it taxable?
Attendance allowance is non-taxable.
Is it income for tax credits?
Attendance allowance is not counted as income for tax credits, but if you receive attendance allowance and meet certain other conditions it may help you qualify for disability or severe disability elements of working tax credit.
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What is it?
Bereavement allowance is paid to people aged 45 or over, but under pension age, when their spouse or civil partner died. It is payable for up to 52 weeks.
Where can I find more information?
GOV.UK
Adviceguide
Turn2Us
Is it taxable?
Bereavement allowance is taxable.
Is it income for tax credits?
Bereavement allowance counts in full as ‘social security income’ for tax credit purposes. If you are aged 50 or over and returning to work after a period claiming certain benefits (including bereavement allowance) you may be entitled to the 50+ element of tax credits.
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What is it?
A bereavement payment is a one off lump sum payment paid to people whose spouse or civil partner had paid enough national insurance contributions or who died due to their job. The surviving partner must either be under pension age when their spouse died or their deceased spouse must not have been entitled to a state pension when they died.
Where can I find more information?
GOV.UK
Adviceguide
Is it taxable?
A bereavement payment is non-taxable.
Is it income for tax credits?
The bereavement payment is ignored as income for tax credit purposes.
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What is it?
This is part of the social fund and is an interest free loan from the DWP to help with particular expenses if you are in receipt of certain benefits. Budgeting loans will be replaced by Budgeting Advances if you are claiming Universal Credit. They will continue to be available to people on existing benefits until all claimants are moved to Universal Credit.
Where can I find more information?
GOV.UK
Turn2Us
Is it taxable?
Budgeting loans are non-taxable.
Is it income for tax credits?
Budgeting loans do not count as income for tax credits.
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What is it?
Carer’s allowance is paid to people who provide care for at least 35 hours per week. The person who is cared for must receive either disability living allowance (middle or higher rate care component) or attendance allowance.
Where can I find more information?
GOV.UK
Carers UK
Turn2Us
Is it taxable?
Carer’s allowance is taxable.
Is it income for tax credits?
Carer’s allowance is counted in full as ‘social security income’ for tax credit purposes.
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What is it?
Child benefit is a non-means tested benefit paid to people who have responsibility for a child (or children) or qualifying young person. It is paid by HM Revenue & Customs (HMRC). Although it is not means tested from 7 January, if you (or your partner) have adjusted net income of £50,000 or more you will be subject to a tax charge unless you opt not to receive payments of child benefit.
Where can I find more information?
HMRC
HMRC - Tax charge information
GOV.UK
Adviceguide
Is it taxable?
Child benefit is non-taxable but you may have to pay a tax charge if your income is above a certain amount. See the HMRC website for more information.
Is it income for tax credits?
Child benefit is not counted as income for tax credit purposes.
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What is it?
Child tax credit is a means-tested benefit paid to families who are responsible for a child (or children) or qualifying young person. It is paid by HM Revenue and Customs. CTC replaced support for children in the benefits system, and you can claim whether or not you work.
Where can I find more information?
LITRG (Advisers section)
HMRC
GOV.UK
Is it taxable?
Child tax credit is non-taxable.
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What is it?
This is a one-off amount paid to some benefit claimants at christmas time.
Where can I find more information?
GOV.UK
Is it taxable?
The christmas bonus is non-taxable.
Is it income for tax credits?
It does not count as income for tax credits.
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What is it?
Cold weather payments are made to people on qualifying benefits when temperatures fall below a certain point.
Where can I find more information?
GOV.UK
Adviceguide
Is it taxable?
The cold weather payment is non-taxable.
Is it income for tax credits?
The cold weather payment does not count as income for tax credit purposes.
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What is it?
This was a grant from the social fund to help you live independently in the community. You did not have to pay it back, but needed to be in receipt of a qualifying benefit to get it. From 1 April 2013 you can no longer claim community care grants. Instead the Government has given money to Local Authorities to make their own arrangements, however this does not have to be in the form of a loan or grant and they may choose not to make any similar arrangements. Separate arrangements exist in Scotland and Wales.
Where can I find more information?
GOV.UK
Scottish welfare fund
Discretionary assistance fund (Wales)
Local council (England)
Is it taxable?
The community care grant is non-taxable.
Is it income for tax credits?
The community care grant does not count as income for tax credit purposes.
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What is it?
Prior to 1 April 2013, help for people on low incomes with council tax was given through council tax benefit. This was abolished form 1 April 2013. Instead the money has been given to Local Authorities to administer their own local council tax reductions schemes. If you qualify, you will get money off your council tax bill.
Where can I find more information?
GOV.UK
Adviceguide
Is it taxable?
It is non-taxable.
Is it income for tax credits?
Council tax benefit did not count as income for tax credits.
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What is it?
Crisis loans have been abolished from 1 April 2013. Before that date they were available if you had an emergency and didn't have enough money to meet immediate needs. The loan needed to be repaid. From 1 April 2013 you can no longer claim. Instead the Government has given money to Local Authorities to make their own arrangements, however this does not have to be in the form of a loan or grant and they may choose not to make similar arrangements. Separate arrangements exist in Scotland and Wales.
Where can I find more information?
GOV.UK
Scottish welfare fund
Discretionary assistance fund (Wales)
Local councils (England)
Is it taxable?
The crisis loan was not non-taxable
Is it income for tax credits?
A crisis loan was not income for tax credit purposes.
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What is it?
Disability living allowance (or DLA as it is commonly known) is a benefit for under 65’s who have mobility problems or need personal care. There are two components – the mobility component (lower and higher) and the care component (lower, middle and higher). From April 2013 DLA is being replaced by the personal independence payment (PIP) for working age people
Where can I find more information?
GOV.UK
Disability Rights UK
Is it taxable?
DLA is non-taxable
Is it income for tax credits?
DLA is not counted as income for tax credits. However if you get DLA you might be entitled to more tax credits through the disabled elements of working tax credit and the child disability elements of child tax credit.
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What is it?
A discretionary housing payment is paid by local authorities to help with rent where there is a shortfall of housing benefit.
Where can I find more information?
Shelter
Is it taxable?
The discretionary housing payment is non-taxable.
Is it income for tax credits?
The discretionary housing payment is not income for tax credit purposes.
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(Please note that the scheme closed to new entrants in England from 1 January 2011. The rules for other parts of the UK differ.)
What is it?
This is an allowance paid to young people up to 19 who stay on in education. It is means-tested by reference to parental income for the previous tax year. The rules of each EMA scheme depend on whether you are in England, Wales, Scotland or Northern Ireland.
Where can I find more information?
GOV.UK
GOV.UK - EMA in Northern Ireland, Scotland and Wales
EMA Scotland
Student Finance Wales
Is it taxable?
EMA is non-taxable.
Is it income for tax credits?
EMA does not count as income for tax credits.
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What is it?
Contribution based employment and support allowance is a benefit for people who are found to have limited capability for work because of illness or disability. It replaced incapacity benefit from October 2008.
Where can I find more information?
GOV.UK
Disability Rights UK
Is it taxable?
Contribution based employment and support allowance is taxable (but see below for income-related employment and support allowance which is not). It is based on your national insurance contribution record.
Is it income for tax credits?
Contribution based employment and support allowance is counted as social security income for tax credit purposes.
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What is it?
Income related employment and support allowance is a benefit for people who are found to have limited capability for work because of illness or disability. It is paid to people who have not paid enough contributions to claim contribution based employment and support allowance. It replaced income support on grounds of disability from October 2008.
Where can I find more information?
GOV.UK
Disability Rights UK
Is it taxable?
Income-related employment and support allowance is non-taxable (but see above for contribution based ESA which is taxable)
Is it income for tax credits?
Income-related employment and support allowance is not counted as income for tax credits. If you are in receipt of income-related ESA, you will automatically be paid maximum working tax credit and child tax credit (note, this does not apply if you get contribution based ESA unless you also get some income-related ESA).
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What is it?
This is a payment from the social fund to help with the costs of a funeral. You must receive a qualifying benefit in order to receive it.
Where can I find more information?
GOV.UK
Turn2Us
Is it taxable?
The funeral payment is non-taxable.
Is it income for tax credits?
It does not count as income for tax credits.
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What is it?
It is a benefit paid by HM Revenue and Customs (HMRC) to people who are looking after a child (or children) whose parents have died.
Where can I find more information?
GOV.UK
HMRC
Is it taxable?
Guardian’s allowance is non-taxable.
Is it income for tax credits?
Guardian’s allowance is not counted as income for tax credits.
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What is it?
People who receive certain benefits can get vouchers for milk, fruit and vegetables from the healthy start scheme.
Where can I find more information?
Healthy start
Is it taxable?
Healthy start is non-taxable.
Is it income for tax credits?
Healthy start does not count as income for tax credit purposes.
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What is it?
Help with health costs is available to people who receive certain benefits or who are on a low income.
Where can I find more information?
GOV.UK
Department of Health
Is it taxable?
Any help with health costs is non-taxable.
Is it income for tax credits?
Help with health costs does not count as income for tax credit purposes. Receipt of tax credits can give entitlement to help with health costs.
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What is it?
Housing benefit is paid by the local authority to those on a low income who have to pay rent. Housing benefit will gradually be replaced by Universal Credit.
Where can I find more information?
GOV.UK
Adviceguide
Shelter
Is it taxable?
Housing benefit is non-taxable.
Is it income for tax credits?
It is not counted as income for tax credits.
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What is it?
Incapacity benefit is paid to people who qualified due to their national insurance contributions and who were found incapable of work due to an illness or disability. No new claims have been allowed since October 2008, when IB was replaced by contribution-based employment and support allowance.
Where can I find more information?
GOV.UK
Disability Rights UK
Is it taxable?
Whether incapacity benefit is taxable depends on the level of benefit you receive and when you started receiving it:
- Short term lower rate IB Non-taxable
- Short term higher rate IB Taxable
- Long term IB Taxable
- Long term IB (in payment since before 13th April 1995) Non-taxable
Is it income for tax credits?
Whether IB is income for tax credits depends on the level of benefit and when you started receiving it:
- Short term lower rate IB not counted as income
- Short term higher rate IB counted as income
- Long term IB counted as income
- Long term IB (in payment since before 13th April 1995) not counted as income
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What is it?
Income support is paid to people who are not required to work such as those with very young children and carers. Income support will gradually be replaced by Universal Credit.
Where can I find more information?
GOV.UK
Adviceguide
Is it taxable?
Income support is non-taxable (if you are involved in a trade dispute it is taxable).
Is it income for tax credits?
Income support is not counted as income for tax credits unless you are involved in a trade dispute in which case it is counted as income. If you receive income-support (non-taxable) you will automatically be entitled to maximum tax credits.
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What is it?
Industrial injuries benefit is paid if you are disabled as a result of an accident or disease from work.
Where can I find more information?
Adviceguide
Is it taxable?
Industrial injuries disablement benefit is non-taxable.
Is it income for tax credits?
It is not treated as income for tax credit purposes.
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What is it?
Contribution-based jobseeker’s allowance is paid to people who are seeking work and who have met the national insurance contribution requirements.
Where can I find more information?
GOV.UK
Is it taxable?
Jobseeker’s allowance is taxable.
Is it income for tax credits?
Contribution based JSA is counted as income for tax credit purposes.
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What is it?
Income-based jobseeker’s allowance is paid to people who are seeking work and who have a low income.
Where can I find more information?
GOV.UK
Is it taxable?
Jobseeker’s allowance is taxable.
Is it income for tax credits?
Tax credits normally follow the tax treatment in determining whether income is counted or not. Income-based JSA is the exception and although it is taxable it is not counted as income for tax credits. If you receive income-based JSA, you will generally be entitled to maximum tax credits.
What is it?
Maternity allowance is paid to people who are pregnant or who have recently had a baby and who don’t qualify for statutory maternity pay, for example if they are self-employed.
Where can I find more information?
GOV.UK
Is it taxable?
Maternity allowance is non-taxable.
Is it income for tax credits?
Maternity allowance is not taken into account as income when calculating tax credits.
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What is it?
Pension credit is a benefit for those aged 60 or over who are on a low income. It is made up of guarantee pension credit (which guarantees a minimum amount to live on) and savings credit (which rewards those with modest savings).
Where can I find more information?
GOV.UK
Age UK
Is it taxable?
Pension credit is non-taxable.
Is it income for tax credits?
Pension credit is not counted as income for tax credits. If you receive pension credit you may be entitled to the maximum amount of working tax credit and child tax credit.
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What is it?
Personal independence payment (or PIP as it is commonly known) is a new benefit that replaces disability living allowance for working age claimants from 8 April 2013. Most existing claimants of DLA won’t be affected until 2015. There are two components – the daily living component (standard and enhanced rate) and the mobility component (standard and enhanced rate). PIP helps with the extra costs of disability caused by long term ill health or disability.
Where can I find more information?
GOV.UK
PIP Checker - find out if your DLA is affected
Disability Rights UK
Is it taxable?
PIP is non-taxable
Is it income for tax credits?
PIP is not counted as income for tax credits. However if you get PIP you might be entitled to more tax credits through the disabled elements of workings tax credits and the child disability elements of child tax credit.
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What is it?
Reduced earnings allowance is paid to people who can’t earn as much as they normally would due to an accident or disease from work.
Where can I find more information?
GOV.UK
Is it taxable?
Reduced earnings allowance is non-taxable.
Is it income for tax credits?
Reduced earnings allowance is not income for tax credit purposes.
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What is it?
Retirement allowance replaces reduced earnings allowance when a person reaches pension age.
Where can I find more information?
DWP
Is it taxable?
Retirement allowance is non-taxable.
Is it income for tax credits?
Retirement allowance is not income for tax credit purposes.
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What is it?
Severe disablement allowance was payable to people who were off sick from work for at least 28 weeks. No new claims have been allowed since April 2001.
Where can I find more information?
GOV.UK
Is it taxable?
Severe disablement allowance is non-taxable.
Is it income for tax credits?
Severe disablement allowance is not income for tax credit purposes.
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What is it?
State retirement pension is paid to people who reach pension age. It is based on national insurance contributions.
Where can I find more information?
GOV.UK
Age UK
Is it taxable?
State retirement pension is taxable.
Is it income for tax credits?
State retirement pension counts as income for tax credits. The first £300 of pension, property, investment, foreign and notional income is disregarded.
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What is it?
Statutory adoption pay is paid to employees who adopt a child and who take time off. It can be paid for up to 39 weeks.
Where can I find more information?
GOV.UK
Is it taxable?
Statutory adoption pay is taxable.
Is it income for tax credits?
The first £100 of weekly statutory adoption pay is disregarded. Anything above this amount counts as income for tax credit purposes.
What is it?
Statutory maternity pay is paid to employees who take time off before and after they have a baby. It is paid for a maximum of 39 weeks.
Where can I find more information?
GOV.UK
Is it taxable?
Statutory maternity pay is taxable.
Is it income for tax credits?
The first £100 of weekly statutory maternity pay is disregarded. Anything above this amount is taken into account as income for tax credits.
What is it?
Statutory paternity pay is paid to employees whose partners have given birth or adopted a child. It is paid for two weeks.
Where can I find more information?
GOV.UK
Is it taxable?
Statutory paternity pay is taxable.
Is it income for tax credits?
The first £100 of weekly statutory paternity pay is disregarded as income for tax credits. Any amount above this limit counts as income.
What is it?
Statutory sick pay (or SSP as it is commonly known) is paid to employees for the first 28 weeks of sick leave.
Where can I find more information?
GOV.UK
Is it taxable?
SSP is taxable.
Is it income for tax credits?
SSP counts as income for tax credit purposes.
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What is it?
A payment made to low income families in receipt of certain benefits to help towards the costs of a new baby.
Where can I find more information?
GOV.UK
Is it taxable?
Sure start maternity grant is non-taxable.
Is it income for tax credits?
It is not income for tax credit purposes.
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What is it?
Universal Credit is a new benefit that is being introduced gradually from April 2013. It will replace 6 other benefits - income support, income-based jobseeker's allowance, housing benefit, child tax credit, working tax credit and income-related employment and support allowance.
From April 2013 it will be introduced in selected areas of Greater Manchester and Cheshire. It will then be rolled out gradually between October 2013 and 2017.
Where can I find more information?
GOV.UK
Is it taxable?
Universal Credit is non-taxable.
Is it income for tax credits?
Universal Credit will replace tax credits.
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What is it?
Vaccine damage payments are paid to people who are severely disabled as a result of vaccination against certain diseases.
Where can I find more information?
GOV.UK
Is it taxable?
The lump sum vaccine damage payment is non-taxable.
Is it income for tax credits?
The vaccine damage payment is not income for tax credit purposes.
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What is it?
This is a pension paid to people injured as a result of service in the armed forces.
Where can I find more information?
GOV.UK
Is it taxable?
War disablement pension is non-taxable.
Is it income for tax credits?
It is not treated as income for tax credits
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What is it?
War widow’s or widower’s pension is paid to those whose husband, wife or civil partner died as a result of their service in the armed forces.
Where can I find more information?
GOV.UK
Is it taxable?
War widow’s pension is non-taxable.
Is it income for tax credits?
War widow’s pension is not counted as income for tax credits.
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What is it?
Widowed parents allowance is paid to people who receive child benefit for at least one child where their husband, spouse or civil partner has died.
Where can I find more information?
GOV.UK
Is it taxable?
Widowed parents allowance is taxable.
Is it income for tax credits?
Widowed parents allowance is pension income for tax credit purposes. The first £300 of property, pension, investment, foreign and notional income is disregarded.
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What is it?
Winter fuel payment is a tax free amount paid yearly to people who have reached the qualifying age by a certain date. The payments depend on your circumstances but are generally between £125 and £400. It is generally paid automatically if you are in receipt of state pension or certain other benefits. If you have not received your payment by January or if you are not in receipt of any benefits then you should contact the winter fuel helpline on 0845 9 15 15 15.
Where can I find more information?
GOV.UK
Citizens Advice
Is it taxable?
Winter fuel payments are non-taxable.
Is it income for tax credits?
The winter fuel payment is not counted as income for tax credit purposes.
What is it?
Working tax credit is paid by HM Revenue and Customs to people who work and receive a low wage. You don’t have to be responsible for a child to get WTC.
Where can I find more information?
Link to LITRG factsheet
LITRG (advisers section)
GOV.UK
Is it taxable?
Working tax credit is non-taxable.
Is it income for tax credits?
Working tax credit does not count as income for child tax credit.
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