By Alex Nelson

Copyright thescarboroughnews

Households on Universal Credit could unlock thousands of pounds in extra support before ChristmasA mix of cash payments, grants and discounts are available to ease festive and winter costsHelp covers everything from everyday essentials to bigger one-off expensesSome schemes are automatic while others require quick applications to secure fundingActing early could make the difference, as many funds are limited and run on a first-come basis

Christmas can be one of the most expensive times of year, with food, heating, presents, and travel costs all piling up at once.

But if you’re on Universal Credit or other qualifying benefits, you might have access to a hidden “Christmas war chest” – a mix of upfront cash, hidden discounts, and ongoing savings that can carry you through the winter and into the new year.

From free childcare and uniform grants, to energy debt relief and even supermarket vouchers, these little-known schemes could take the pressure off your budget in the weeks leading up to the festive season, and in some cases, far beyond.

If you stacked every scheme where you’re eligible, the maximum payout could reach an eye-watering £7,205. Of course, not everyone will qualify for all 13, but even a handful could ease the pressure significantly.

Here’s a breakdown of 13 ways to boost your household finances before December 25, and how to make sure you don’t miss out.

Most of these schemes are time-sensitive. Councils often run out of Household Support Fund or welfare cash before the end of the financial year, and energy debt grants are limited. The earlier you apply, the better your chances.

It’s also worth speaking directly with your local council or Jobcentre, as they may know of smaller, localised grants not widely advertised.

If you’re struggling, don’t wait. Apply now, check your eligibility, and make sure you get every penny you’re entitled to.

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1. Free Childcare – up to £1,768 a month

Parents on Universal Credit who are working can get up to 85% of childcare costs covered, worth as much as £1,031.88 per month for one child or £1,768.94 for two or more children.

Normally you need to pay upfront and claim it back, but if you’re starting a new job or increasing hours, you can request the payment in advance. For some, this is the difference between being able to take on more work or not.

Apply via: gov.uk/help-with-childcare-costs/universal-credit

2. Energy Bill Grants – up to £1,700

Several suppliers, including British Gas, EDF, Octopus, Ovo, and Scottish Power, run hardship funds that clear energy debt.

The British Gas Energy Trust is even open to non-customers. You’ll usually need debts between £50 and £1,700 to apply.

Apply via: bget.org.uk

3. Funeral Expenses Payment – up to £1,000

A sombre one, but important: Universal Credit claimants can get help with burial or cremation fees, travel, and up to £1,000 for other funeral costs.

While it won’t cover everything, it can prevent families from falling into debt at a particularly difficult time.

More information at: gov.uk/funeral-payments

4. Discretionary Housing Payment – Average £518

Struggling with rent? Councils can top up your Housing Benefit or Universal Credit housing element with a Discretionary Housing Payment (DHP).

This could cover rent shortfalls, deposits, or rent in advance. The average award in 2024 was £518.

More information at: gov.uk/government/publications/claiming-discretionary-housing-payments/claiming-discretionary-housing-payments

5. Household Support Fund – Up to £500

The government has pumped millions into local councils via the Household Support Fund (HSF), designed to provide either cash payments or supermarket vouchers.

Eligibility and amounts vary, but many households have received up to £500. Councils usually prioritise low-income households with children, pensioners, or disabled members.

More information at: gov.uk/cost-living-help-local-council

6. Sure Start Maternity Grant – £500

Expecting a baby? First-time parents (or those having twins or more when they already have children) can claim a £500 one-off grant.

It doesn’t need to be repaid and won’t affect your other benefits.

More information at: gov.uk/sure-start-maternity-grant

7. Local Welfare Assistance – Up to £500

Every council runs its own emergency support scheme. Typical help includes vouchers for food, essentials, or one-off payments for white goods or household repairs.

Amounts differ, but £500 is a common cap.

8. School Uniform Grants – Up to £200

Uniform costs can spiral, but some councils provide £25 to £200 per child.

Just two councils in England (Brent and Norfolk) offer the full £200, but support is more generous in Scotland, Wales, and Northern Ireland.

Check eligibility via: gov.uk/school-uniform

9. Bank Switching Bonuses – £175

Not strictly a benefit, but bank switch deals are a quick win. First Direct is currently offering £175 in free cash plus perks like a £250 interest-free overdraft and a 7% savings account.

That’s enough to cover Christmas dinner and gifts, with zero impact on benefits.

10. Warm Home Discount – £150

Households on qualifying benefits automatically receive a £150 discount on their winter electricity bill.

Payments are applied directly to your energy account from October onwards.

More information at: gov.uk/the-warm-home-discount-scheme

11. Flexible Support Fund – Around £150

Jobcentres can reimburse travel, childcare, training, or uniform costs for people moving into work. There’s no strict maximum, but many awards hover around £150.

More information at: turn2us.org.uk/about-us/news-and-media/latest-news/what-is-the-flexible-support-fund

12. Healthy Start Vouchers – Worth Up to £34 a Month

If you’re more than 10 weeks pregnant or have a child under four, you can claim a prepaid card loaded with £4.25 to £8.50 per week for healthy food, milk, and vitamins.

Over a month, that’s worth about £34 — small but steady savings that free up cash for other costs.

Apply via: healthystart.nhs.uk/frequently-asked-questions/applying-for-healthy-start-faqs

13. DWP Christmas Bonus – £10

Introduced back in 1972 and still frozen at the same value, this bonus might not stretch far, but it’s automatically added to eligible claimants’ accounts in the first week of December.

Look out for the code “DWP XB” on your bank statement.

More information at: gov.uk/christmas-bonus

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