Benefits for people on a low income

If you, or the person you care for, are on a low income, there are a number of benefits which may be claimed.

Income Support (IS) and Income-based Jobseekers Allowance (IBJSA)

Income Support is a means-tested benefit for people who:

• are on a low income
• are not in full-time work ('full-time work' is defined in the regulations as 16 hours or more a week)
• do not have more than £16,000 savings if below 60 years of age. 

Income Support is claimed from your local Social Security Office, Department of Work and Pensions and can 'top up' other income that you may have such as Incapacity Benefit or Carer's Allowance.

Income Support and Income-based Jobseekers Allowance are 'passport' benefits which means you might also be eligible for Housing Benefit, Council Tax Benefit, free prescriptions, dental treatment and other health benefits. You may be eligible for help from the Social Fund, which can assist with the cost of certain expenses. 

Child Tax Credit (CTC)

Child Tax Credit is a means-tested payment for people who are responsible for children, whether they are in or out of work. You can get Child Tax Credit if you meet all of the following requirements:

• you are at least 16 years old
• you, or your partner, are responsible for a child or young person who normally lives with you
• you satisfy the residence and presence conditions
• your income is within a set limit, which varies according to your family circumstances.

Introduced in April 2003, Child Tax Credit replaced children's tax credit and the increases for children within Working Families and Disabled Person's Tax Credits. 

From April 2004, it replaced the child allowances within Income Support and Income-based Jobseekers Allowance and the child increases paid with non-means-tested benefits such as Incapacity Benefit for new claimants. 

Existing claimants already in receipt of support for children, within their Income Support and Income-based Jobseekers Allowance, were moved onto Child Tax Credit from October 2004. 

If you are claiming Income Support and Income-based Jobseekers Allowance, please seek advice before claiming Child Tax Credit. You can claim Child Tax Credit from HM Revenue and Customs.

Working Tax Credit (WTC)

Working Tax Credit is a means-tested payment for those in low-paid work. Payments can be made if you are:

• in low-paid work for 30 hours a week
• are aged 25 years or more and who do not have dependent children
• some people who are aged 50 years and over may also be eligible. 

Payments can include childcare costs and elements that take into account disability within the family unit. Working Tax Credit replaced Working Family Tax Credit and Disabled Persons Tax Credit and is, in some ways, more generous as it disregards certain incomes that were previously taken into account. 

Working Tax Credit can be paid in addition to Child Tax Credit.  Both credits are tax-free and are administered by the Inland Revenue. You can claim Working Tax Credit from HM Revenue and Customs.

Find out more

For more information, please contact the Welfare Benefits service.