State benefits
Tax credits and benefits
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 and for universal credit claims.
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 and for universal credit claims.
Adult Disability Payment (Scotland)
What is it?
Adult disability payment is a new payment introduced in Scotland from 2022. It is paid as disability assistance under Scotland social security legislation. It will gradually replace PIP and DLA for adults in Scotland.
Where can I find more information?
Is it taxable?
Adult disability payment is not taxable
Is it income for tax credits?
Adult disability payment is not counted as income for tax credits
Is it income for universal credit?
Adult disability payment is not listed as income for universal credit
Armed forces independence payment
What is it?
This benefit 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?
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.
Is it income for universal credit?
It is not counted as income for universal credit.
Attendance allowance
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?
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.
Is it income for universal credit?
Is it not counted as income for universal credit.
Bereavement allowance
What is it?
Bereavement allowance is paid to people aged 45 or over, but under pension age, without children, whose spouse or civil partner died before 6 April 2017. It is payable for up to 52 weeks.
Bereavement Support Payment may be payable to people whose spouse or civil partner or cohabiting partner died on or after 6 April 2017.
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.
Is it income for universal credit?
Bereavement allowance counts as unearned income for universal credit.
Bereavement payment
What is it?
A bereavement payment is a one off lump sum payment paid to people whose spouse or civil partner died before 6 April 2017 where they 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.
Bereavement payment is replaced by the Bereavement Support Payment for people whose spouse or cohabiting partner died on or after 6 April 2017.
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.
Is it income for universal credit?
Bereavement payment is not treated as income for universal credit but as it is a one-off payment, it does appear to count as capital for universal credit.
Bereavement support payment
What is it?
From 6 April 2017, bereavement support payment replaces bereavement allowance, bereavement payment and widowed parents’ allowance. Bereavement support payment is made up by a lump sum payment followed by up to 18 monthly payments. Following a change in the law, bereavement support payment is also available to bereaved cohabiting partners.
Is consists of a tax-free lump sum of £2,500 for those without children or £3,500 for those with children, followed by a monthly tax-free payment of £100 if you do not have children and £350 if you do. The monthly payments continue for 18 months paid regardless of your age or if you find a new partner and it is not linked to inflation.
Where can I find more information?
Is it taxable?
The bereavement support payment is non-taxable.
Is it income for tax credits?
The bereavement support payment is ignored as income for tax credit purposes.
Is it income for universal credit?
The initial lump sum is disregarded as capital for universal credit for the first12 months and the ongoing allowance is disregarded as income.
Budgeting loans
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?
Is it taxable?
Budgeting loans are non-taxable.
Is it income for tax credits?
Budgeting loans do not count as income for tax credits.
Is it income for universal credit?
Budgeting loans do not count as income for universal credit.
Carer’s allowance
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), the daily living component of personal independence payment or attendance allowance, constant attendance allowance at or above the normal maximum rate with an industrial injuries disablement benefit, constant attendance allowance at the basic (full day) rate with a war disablement pension, armed forces independence payment, adult disability payment (daily living at the standard or enhanced rate) or child disability payment (middle or highest care rate).
Where can I find more information?
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.
Is it income for universal credit?
Carer’s allowance is treated as unearned income for universal credit. If you receive carer’s allowance, you may be entitled to an additional carer’s element of universal credit and have your capability for work assessment adjusted. NB, entitlement to the carer’s element of universal credit is not exclusively dependent on receiving carer’s allowance.
Carer’s allowance Supplement (Scotland only)
What is it?
Carer’s allowance is paid to people who provide care for at least 35 hours per week to people in receipt of certain disability benefits. The Scottish Government will make two additional payments a year to people who live in Scotland and were entitled to carer’s allowance on specified dates in the year. These payments will effectively see carer’s allowance topped up to the level of jobseeker’s allowance.
Where can I find more information?
Is it taxable?
Carer’s allowance supplement is taxable.
Is it income for tax credits?
Carer’s allowance supplement is disregarded as income for tax credits.
Is it income for universal credit?
Carer’s allowance supplement is disregarded as income for universal credit.
Child benefit
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 2013, 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?
See our child benefit page for more information.
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 our high income child benefit charge page for more information.
Is it income for tax credits?
Child benefit is not counted as income for tax credit purposes.
Is it income for universal credit?
Child benefit is not treated as income for universal credit.
Child tax credit (CTC)
What is it?
CTC is a means-tested benefit paid to families who are responsible for a child (or children) or qualifying young person. It is paid by HMRC. CTC replaced support for children in the benefits system and is, itself, being replaced by universal Credit (UC), You can get CTC whether or not you work.
Where can I find more information?
Is it taxable?
CTC is non-taxable.
Is it income for universal credit?
Universal credit replaces CTC and you generally cannot claim both at the same time.
Child Disability Payment (Scotland only)
What is it?
Child disability payment in Scotland is a new payment replacing disability living allowance for children in Scotland. It is payable for young children and people up to age 18 who have a disability or long-term health condition. Families in Scotland currently claiming the equivalent support through DLA are being transferred to the new payment from autumn 2021.
Where can I find more information?
Is it taxable?
CDP is not taxable
Is it income for tax credits?
CDP does not count as income for tax credits
Is it income for universal credit?
CDP does not count as income for universal credit
Christmas bonus
What is it?
This is a one-off amount paid to some benefit claimants at Christmas time.
Where can I find more information?
Is it taxable?
The Christmas bonus is non-taxable.
Is it income for tax credits?
It does not count as income for tax credits.
Is it income for universal credit?
The Christmas bonus does not count as income for universal credit.
Cold weather payment
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?
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.
Is it income for universal credit?
Cold weather payment does not count as income for universal credit.
Cost of living payments
What is it?
The Government announced a series of extra payments through 2022 to 2024 to help with the cost of living for people entitled to certain benefits or tax credits.
Where can I find more information?
Is it taxable?
The Government cost of living payments are not taxable
Is it income for tax credits?
The Government cost of living payments are not included as income for tax credits
Is it income for universal credit?
The Government cost of living payments do not count as income for universal credit
Council tax reduction
What is it?
Prior to 1 April 2013, help with council tax for people on low incomes was given through council tax benefit. This was abolished from 1 April 2013 and instead the funding 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?
Is it taxable?
It is non-taxable.
Is it income for tax credits?
Council tax benefit did not count as income for tax credits.
Is it income for universal credit?
Council tax benefit was abolished before universal credit was introduced and no residual payments will be payable.
Disability living allowance
What is it?
Disability living allowance (or DLA as it is commonly known) was a benefit for those under state who have mobility problems or need personal care. DLA is only available if you’re under 16 in England and Wales. To see what has replaced DLA go to GOV.UK. If you are 16 or over and already get DLA – you can find out if you will continue to receive it on GOV.UK.
Where can I find more information?
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 disability element of working tax credit and the child disability elements of child tax credit.
Is it income for universal credit?
DLA does not count as income for universal credit.
Discretionary housing payment
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?
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.
Is it income for universal credit?
A discretionary housing payment does not count as income for universal credit.
Employment and support allowance – new style
What is it?
New-style employment and support allowance replaces contributions-based ESA and works in the same way. It is a benefit for people who are found to have limited capability for work because of illness or disability and who have been an employee or self-employed and paid National Insurance contributions (or in some cases have National Insurance credits), usually in the last 2 to 3 years.
Your (or your partner’s) income and savings will not affect how much ‘new style’ ESA you’re paid.
Where can I find more information?
Is it taxable?
New-style employment and support allowance is taxable.
Is it income for tax credits?
New-style employment and support allowance is counted as social security income for tax credits.
Is it income for universal credit?
New-style employment and support allowance is counted in full as unearned income for universal credit.
Employment and support allowance – contribution-based
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. CBESA has been replaced by new-style ESA in most cases.
Where can I find more information?
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.
Is it income for universal credit?
Contribution-based employment and support allowance is counted as unearned income in full for universal credit.
Employment and support allowance – income-related
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. IR-ESA has been replaced by UC in most cases.
Where can I find more information?
Is it taxable?
Income-related employment and support allowance is non-taxable (but see above for contribution-based employment and support allowance 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 employment support allowance you will automatically be paid maximum working tax credit and child tax credit (note: this does not apply if you get contribution-based employment support allowance or new-style employment and support allowance unless you also get some income-related employment support allowance).
Is it income for universal credit?
Income-related employment and support allowance is being replaced by universal credit and you cannot receive it at the same times as universal credit.
Funeral payment
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?
Is it taxable?
The funeral payment is non-taxable.
Is it income for tax credits?
It does not count as income for tax credits.
Is it income for universal credit?
A funeral payment does not count as unearned income for universal credit.
Guardian’s allowance
What is it?
It is a benefit paid by HMRC to people who are looking after a child (or children) whose parents have died or has 1 surviving parent who is unable to look after the child.
Where can I find more information?
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.
Is it income for universal credit?
Guardian’s allowance is not treated as income for universal credit.
Healthy start
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?
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.
Is it income for universal credit?
Healthy start is not treated as income for universal credit.
Help with health costs
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?
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.
Is it income for universal credit?
Help with health costs does not count as income for universal credit.
Housing benefit
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?
Is it taxable?
Housing benefit is non-taxable.
Is it income for tax credits?
It is not counted as income for tax credits.
Is it income for universal credit?
Housing benefit is gradually being replaced by universal credit . It is generally not possible to receive housing benefit and universal credit at the same time. Eventually, housing costs will also be paid with pension credit, for those who have reached state pension credit qualifying age.
Income support
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?
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.
Is it income for universal credit?
Income support is gradually being replaced by universal credit and is generally not possible to claim universal credit and income support at the same time.
Industrial injuries disablement benefit
What is it?
Industrial injuries disablement benefit is paid if you are disabled as a result of an accident or disease from work.
Where can I find more information?
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.
Is it income for universal credit?
It is treated as income for universal credit (but not increases where constant attendance is needed or for exceptionally severe disablement).
Jobseeker’s allowance – new style
What is it?
New-style jobseeker’s allowance (JSA) is paid to people who are seeking work and who have met the National Insurance contribution requirements.
Where can I find more information?
Is it taxable?
JSA is taxable.
Is it income for tax credits?
New-style JSA is counted as income for tax credit purposes.
Is it income for universal credit?
New-style JSA is counted in full as unearned income for universal credit.
Jobseeker’s allowance – contribution-based
What is it?
Contribution-based jobseeker’s allowance (JSA) is paid to people who are seeking work and who have met the National Insurance contribution requirements. In most cases this has been replaced by new-style JSA.
Where can I find more information?
Is it taxable?
JSA is taxable.
Is it income for tax credits?
Contribution-based JSA is counted as income for tax credit purposes.
Is it income for universal credit?
Contribution-based JSA is counted in full as unearned income for universal credit.
Jobseekers allowance – income-based
What is it?
Income-based jobseeker’s allowance (JSA) is paid to people who are seeking work and who have a low income.
Where can I find more information?
Is it taxable?
JSA 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.
Is it income for universal credit?
Income-based JSA is being replaced by universal credit and will form part of the universal credit award. Any excess paid for the same period as a universal credit award, after adjustment for overlapping benefits, is taken into account as unearned income for universal credit.
Maternity allowance
What is it?
Maternity allowance is paid to people who are pregnant or who have recently had a baby and who do not qualify for statutory maternity pay, for example if they are self-employed.
Where can I find more information?
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.
Is it income for universal credit?
Maternity allowance is counted in full as unearned income for universal credit.
Pension credit
What is it?
Pension credit is a benefit for those who meet certain age requirements and who are on a low income. It can include elements for children and young people up to age 20 who normally live with the claimant and who the claimant is responsible for. It is made up of guarantee credit (which guarantees a minimum amount to live on) and savings credit (which rewards those with modest savings).
Where can I find more information?
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.
Is it income for universal credit?
Pension credit is not treated as income for universal credit.
Personal independence payment
What is it?
Personal independence payment (or PIP as it is commonly known) replaced disability living allowance (DLA) for working-age claimants from 8 April 2013. Most existing claimants of DLA are gradually moving cross to PIP. 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?
PIP Checker – find out if your DLA is affected
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 working tax credit and the child disability elements of child tax credit.
Is it income for universal credit?
PIP is not treated as income for universal credit. If you receive PIP it may be a factor in considering your capability for work under universal credit rules and you may be entitled to additional elements of universal credit.
Reduced earnings allowance
What is it?
Reduced earnings allowance is paid to people who cannot earn as much as they normally would due to an accident or disease from work.
Where can I find more information?
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.
Is it income for universal credit?
Reduced earnings allowance is counted in full as unearned income for universal credit.
Scottish child payment
What is it?
Scottish child payment started in February 2021 and is expected to be fully rolled out by the end of 2022. It is a payment for low-income families in Scotland with children and who are in receipt of a qualifying benefit.
Where can I find more information?
Is it taxable?
Scottish child payment is not taxable
Is it income for tax credits?
Scottish child payment is not income for tax credits
Is it income for universal credit?
Scottish child payment is not listed as income for universal credit
Severe disablement allowance
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?
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.
Is it income for universal credit?
Any residual payments of severe disability allowance are counted in full as unearned income for universal credit.
State retirement pension
What is it?
State pension is paid to people who reach pension age. It is based on National Insurance contributions.
Where can I find more information?
Is it taxable?
State pension is taxable.
Is it income for tax credits?
State pension counts as income for tax credits. The first £300 of pension, property, investment, foreign and notional income is disregarded.
Is it income for universal credit?
All categories of state pension count in full as unearned income for universal credit. In addition, any deferred state pension entitlement is counted in full as ‘notional’ income.
Statutory adoption pay
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?
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.
Is it income for universal credit?
Statutory adoption pay counts in full and is treated as earned income for universal credit.
Statutory maternity pay
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?
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.
Is it income for universal credit?
Statutory maternity pay counts in full and is treated as earned income for universal credit.
Statutory parental bereavement pay
What is it?
In England, Scotland and Wales, Statutory parental bereavement pay is paid to employees for up to 2 weeks where they take time off work due to a child (aged under 18) bereavement or stillbirth after 24 weeks of pregnancy. Statutory parental bereavement leave and pay was introduced on 6 April 2020.
Where can I find more information?
Is it taxable?
Statutory parental bereavement pay is taxable.
Is it income for tax credits?
The first £100 of weekly statutory parental bereavement pay is disregarded. Anything above this amount is taken into account as income for tax credits.
Is it income for universal credit?
Statutory parental bereavement pay counts in full and is treated as earned income for universal credit.
Statutory paternity pay
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?
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.
Is it income for universal credit?
Statutory paternity pay counts in full and is treated as earned income for universal credit.
Statutory Shared Parental Pay (ShPP)
What is it?
ShPP was introduced for babies born or adopted after 5 April 2015. ShPP is linked to Shared Parental Leave which allows parents to share leave in the first year. If you are eligible for Shared Parental Leave and you or your partner end maternity or adoption leave and pay (or Maternity allowance) early then you may be able take the rest of the 39 weeks of pay (or maternity allowance up to 37 weeks) as ShPP.
Where can I find more information?
Is it taxable?
Shared Parental Pay is taxable.
Is it income for tax credits?
The first £100 of weekly ShPP payments is disregarded as income for tax credits. Any amount above this limit counts as income.
Is it income for universal credit?
ShPP counts in full and is treated as earned income for universal credit
Statutory sick pay
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?
Is it taxable?
SSP is taxable.
Is it income for tax credits?
SSP counts as income for tax credit purposes.
Is it income for universal credit?
SSP counts in full and is treated as earned income for universal credit.
Sure start maternity grant
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?
Is it taxable?
Sure start maternity grant is non-taxable.
Is it income for tax credits?
It is not income for tax credit purposes.
Is it income for universal credit?
Sure start maternity grant is not treated as income for universal credit.
Universal credit
What is it?
Universal credit was introduced gradually from April 2013. It replaces six other benefits – income-support, income-based jobseeker's allowance, housing benefit, child tax credit, working tax credit and income-related employment and support allowance.
Where can I find more information?
Is it taxable?
Universal credit is non-taxable.
Is it income for tax credits?
Universal credit will replace tax credits.
Vaccine damage payment
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?
Is it taxable?
The lump sum vaccine damage payment is non-taxable.
Is it income for tax credits?
The vaccine damage payment is not treated income for tax credit purposes where the beneficiary is a child. Where the child is grown up and makes a claim for tax credits in their own right, any continuing income from a vaccine damage trust would be counted as investment income.
Is it income for universal credit?
Vaccine damage payments do not appear to be treated as income for universal credit and lump sum payments are not included as capital if they are held in a trust but may be treated as capital if they are invested in some other way.
War disablement pension
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?
Is it taxable?
War disablement pension is non-taxable.
Is it income for tax credits?
It is not treated as income for tax credits.
Is it income for universal credit?
It is not treated as income for universal credit.
War widow’s or widower’s pension
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?
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.
Is it income for universal credit?
War widow’s/widower’s pension is not treated as income for universal credit.
Welfare Supplementary payments (Northern Ireland)
What is it?
Welfare Supplementary Payments (WSP) have been introduced in Northern Ireland only to reduce the impact of some welfare changes including the introduction of the benefit cap, changes to employment and support allowance and personal independence payment, loss of disability premiums/elements in certain benefits, loss of carers allowance in some cases, universal credit and changes to housing benefit.
Claimants may be eligible for more than one WSP if applicable. These are awarded automatically and there is no need to claim them.
Where can I find more information?
Is it taxable?
Whether the payment is taxable depends on what benefit it is replacing – if it is replacing a lost taxable benefit (even if it is paid as an addition to a non-taxable benefit), then the payment will be taxable. If it is replacing a benefit that was not taxable, then the WSP will not be taxable.
Is it income for tax credits?
The tax credit treatment follows the tax treatment – if the WSP is taxable it will be counted as income for tax credits.
Widowed parent's allowance
What is it?
Widowed parent’s allowance is paid to people who receive child benefit for at least one child where their husband, spouse or civil partner died before 6 April 2017. Following a change in the law, WPA is also extended to cover bereaved cohabiting parents.
Widowed parent’s allowance is replaced by Bereavement Support Payment for new claims whose husband, wife or civil partner died on or after 6 April 2017.
Where can I find more information?
Is it taxable?
Widowed parent’s allowance is taxable.
Is it income for tax credits?
Widowed parent's allowance is pension income for tax credit purposes. The first £300 of property, pension, investment, foreign and notional income is disregarded.
Is it income for universal credit?
WPA is counted in full as unearned income for universal credit.
Retrospective payments which are made under the terms of the Bereavement Benefits Remedial Order 2023, extending entitlement to co-habiting couples, can affect other benefits and tax credits. Claimants should contact with DWP (or HMRC, for tax credits) to discuss their individual circumstances.
Winter fuel payment
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 £100 and £300. 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 0345 9 15 15 15.
Where can I find more information?
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.
Is it income for universal credit?
Winter fuel payments are not treated as income for universal credit.
Working tax credit (WTC)
What is it?
WTC is paid by HMRC to people who work and receive a low wage. You do not have to be responsible for a child to get WTC.
Where can I find more information?
Is it taxable?
WTC is non-taxable.
Is it income for tax credits?
WTC does not count as income for child tax credit.
Is it income for universal credit?
Universal credit is gradually replacing WTC. It is generally not possible to claim universal credit and WTC at the same time.
