Seven loopholes Department for Work and Pensions (DWP) benefits can hand UK households have emerged.
Seven DWP benefit loopholes that could unlock thousands for claimants
All the benefit loopholes that could unlock THOUSANDS in cash have been revealed. Seven loopholes Department for Work and Pensions (DWP) benefits can hand UK households have emerged.
The perks and loopholes could be worth thousands and significantly boost your income. The DWP provides figures for the number of people claiming unemployment related benefits in the UK and by parliamentary constituency.
There were 1.74 million claimants in June 2025, which was 26,000 more than the month before and 98,000 more than in June 2024. But those claiming certain benefits can use these loopholes to put more cash into their wallets this year.
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Council tax reduction
You could be eligible if you’re on a low income or claim benefits. Your bill could be reduced by up to 100%. You can apply if you own your home, rent, are unemployed or working.
What you get depends on where you live – each council runs its own scheme and your circumstances (for example income, number of children, benefits, residency status).
It also depends on your household income – this includes savings, pensions and your partner’s income and if your children live with you.
It also depends on if other adults live with you.
Extra benefits
If you’ve got a long-term illness you might be able to claim extra benefits.
Personal Independent Payments (PIP) is a benefit for people who are under state pension age and need help with day-to-day life because of a long-term illness or disability.
If you struggle with carrying out everyday activities you can get the daily living part of PIP, which is worth either £73.90 a week or £110.40 a week depending on how severe your condition is.
People who have trouble getting around can get the mobility part of PIP, which is worth £29.20 per week for the lower rate or £77.05 for the higher rate.
You can also boost your Universal Credit payments by claiming the health element of the benefit, too.
Payments boost
If you or your partner are working, how much Universal Credit you get will depend on how much you earn each month. These are called your ‘assessment periods’.
You can check how much Universal Credit you will get each month in the statement in your online account.
Your Universal Credit payment will reduce as your wages go up, and increase again if you stop working or your wages go down.
For every £1 you or your partner earns your payment goes down by 55p. This amount will be automatically deducted from your Universal Credit payment.
The taper rate can be different based on your specific circumstances, including if you have a disability or children.
Child Benefit threshold
If you or your partner earn over £50,099 a year, you need to repay some child benefit or all of it if you earn over £60,000 via a tax return.
This means you pay back 1% of your child benefit payments for every £100 of income over this amount. But by the time you earn £60,000 or more, you need to repay it all.
85% of childcare
If you pay for childcare while you go to work, Universal Credit can pay some of your childcare costs. This includes holiday clubs, after-school clubs and breakfast clubs. If you live with a partner, you both need to be working, unless your partner cannot look after your children.
Your total Universal Credit payment can go up or down, depending on how much you earn from work in each assessment period. So, if you earn more than usual during one assessment period, your total Universal Credit payment might go down.
You can get up to 85% of childcare costs paid back to you. The maximum amount for each assessment period is:
£1,031.88 for one child£1,768.94 for 2 or more children
Household Support Fund
This is a Government scheme worth £742million that’s being shared among councils to help them support people on low incomes.
Fiona Peake, a personal finance expert at Ocean Finance, explains: “Families are missing out because they don’t realise they’re eligible, but this fund is for anyone who is having a tough time – people who are working hard, juggling the bills and still finding there’s not enough left at the end of the month.
“In many cases, they don’t need to be on Universal Credit or any other benefit to apply. The schemes are different depending on where you live, and some are already closing for the summer, so don’t hang about.”
Freebies
There are more than 80 places like museums, theme parks, zoos, theatres and cinemas where you can get in for cheap or even for free if you’re on Universal Credit or other benefits. Some of these places even let you bring other people with you at a discount, making for an affordable family day out.
You can also get help with NHS prescriptions, Royal Mail recirculation costs and more.
