If your child has a disability or long-term health condition, you might be entitled to Disability Living Allowance (DLA) for them as well as other financial support. This page explains more about the disability benefits and entitlements your child might qualify for and how to claim them.

• Disability Living Allowance
• Personal Independence Payment (PIP)
• Help with housing costs if your child has a disability
• Child Tax Credit if your child has a disability
• Help with getting about – Motability and Blue Badge Schemes
• Benefits if you’re a carer
• Help with claiming disability benefits for your child

Disability Living Allowance

Disability Living Allowance is a regular payment to help with the extra costs of daily living or mobility because your child has a long-term health condition or disability. It isn’t means-tested.

This means you might able to claim the benefit for your child regardless of your income or how much you have in savings.

Who is it for?

• Children aged from three months to 16 who need extra help with daily living tasks, or
• Children aged from three years to 16 who need help with mobility (getting about).

How much is it?

You could get between £23.20 and £148.85 a week, depending on the needs of your child.

How to claim?

Claim online on the GOV.UK website

Personal Independence Payment (PIP)

What is PIP?

Personal Independence Payment has replaced DLA for people aged 16 to 64.

It is a payment that helps with the extra costs of being disabled or having a long-term health condition.

It isn’t means-tested.

This means you might be able to claim the benefit for your child when they turn 16, regardless of your income or how much you have in savings.

Who is it for?

People aged 16 to 64 who need help with daily living tasks or mobility (getting around).

If your child is aged 16 or over and you’re making a new claim for help with the extra costs of disability, you’ll need to claim PIP.

If your child is already getting DLA, you will be invited to make a new claim for PIP when they reach age16.

How much is it?

You could get between £23.20 and £148.85 a week, depending on the needs of your child.

How to claim?

Call the PIP claim line on 0800 917 2222 or Textphone on 0800 917 7777.

Help with housing costs if your child has a disability

Housing Benefit

Who is it for?

A household paying rent. More of your rent might be covered if a child in your household has a disability or long-term health condition.

Housing Benefit will be gradually replaced with Universal Credit.

How to claim?

Contact your local Jobcentre Plus/Jobs and Benefits Office or local council office.

Help with Council Tax

Who is it for?

The person responsible for paying Council Tax. More of your bill might be covered if a child in your household has a disability or long-term health condition.

Council Tax Benefit has now been replaced by Council Tax Reduction schemes run by local councils in England, Wales and Scotland.

You can find out more on your local council website.

How to claim?

In England contact your local council to apply for their Council Tax Reduction scheme.

In Scotland contact your local authority to find out about their Council Tax Reduction scheme.

In Wales contact your local authority to find out about their Council Tax Reduction scheme.

Cold Weather Payment

Who is it for?

You might be able to get a Cold Weather payment to help with home heating costs if your child has a long-term health condition or disability and you’re getting one of these benefits:

• Income Support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance.

How to claim?

You don’t need to apply. If you’re eligible to get a Cold Weather Payment, you’ll be paid it automatically after the temperature in your area has dropped below 0°C for seven consecutive days or more.

Child Tax Credit if your child has a disability

Who is it for?

Anyone with responsibility for a child who normally lives with them. How much you get will depend on your household income.

If your child has a disability or long-term health condition, you might able to claim an additional disabled premium for them.

Child Tax Credit will be gradually replaced with Universal Credit.

Changes to Child Tax Credit and Universal Credit

From April 2017, there are changes to who can get Child Tax Credits and Universal Credit, limiting support to the first two children.

However, all disabled children are protected.

So if you make a new claim after this date, you’ll still be able to get the disabled premium for any of your children who are disabled.

If you already have more than two children and are getting Child Tax Credits or Universal Credit, you won’t be affected by the changes.

For more information, use the tax credits calculator on the HM Revenue & Customs website to find out if you qualify and get a rough idea of how much you could be entitled to.

How to claim?

Call the Tax Credit Helpline on 0345 300 3900.

Help with getting about – Motability and Blue Badge Schemes

Motability Scheme

Who is it for?

People getting the higher rate mobility element of Disability Living Allowance or Personal Independence Payment – the scheme can provide a car, motorised wheelchair or scooter.

How to claim?

Call Motability on 0300 456 4566.

Blue Badge Scheme

Who is it for?

The Blue Badge scheme helps those with severe mobility problems who have difficulty using public transport to park close to where they need to go. Charges and entitlement rules for the Blue Badge scheme vary across the UK.

How to claim?

Apply online on the GOV.UK website or contact your local council.

Benefits if you’re a carer

Income Support

Who is it for? Parents who can’t work because they are caring for a disabled child.

Income Support will be gradually replaced by Universal Credit.

How to claim?

Contact your local Jobcentre Plus or Jobs and Benefits Office.

Carer’s Allowance

Who is it for? If you’re spending at least 35 hours a week caring for a child who gets the middle or higher rate care component of Disability Living Allowance.

More information: GOV.UK – Carer’s Allowance

If you live in Scotland, carers will also get a supplementary payment of £221 a year. This will be made in two payments.

How to claim?

Contact your local Jobcentre Plus or Jobs and Benefits Office.

Help with claiming disability benefits for your child

Disability benefits are there to help you.

However, working out if your child is eligible and filling in the forms can be really complicated.

If you’re claiming DLA or PIP for your child, they’ll usually need to be medically assessed as part of the claim process.

To get free expert help and advice, call these helplines to speak to an adviser.

While the disability benefit system is being reformed, it is particularly important to know where to get specialist help if you need it.

• Disability Benefits Helpline: 03457 123 456
• Contact a Family Helpline: 0808 808 3555
• Enter your postcode on the Citizens Advice website to find your local bureau.

Read our guide Make sure you’re getting the right entitlements

This article is provided by the Money Advice Service.

If you’re already getting certain benefits and need a loan, see if you can apply for an interest-free Budgeting Loan from the Social Fund. This can be much cheaper than paying high interest charges for borrowing from payday or doorstep lenders. This page tells you how Budgeting Loans work and how to apply for them, including information about Budgeting Advances if you’re on Universal Credit.

• What is a Budgeting Loan?
• Can I get a Budgeting Loan?
• How to apply for a Budgeting Loan
• Paying back a Budgeting Loan
• What is a Budgeting Advance?
• Other help you can get
• Help if you’re waiting for your first benefit payment

What is a Budgeting Loan?

A Budgeting Loan helps you pay for an essential or unexpected expense if you’re on a low income. It can be used for a wide range of things, including:

• furniture or household equipment
• clothing or footwear
• advance rent or removal expenses for a new home
• travelling expenses
• things to help you look for or start work
• improving, maintaining or securing your home
• maternity or funeral expenses.

Other help with maternity expenses

If you’re expecting your first child or you’re expecting more than one baby and already have children, you might be able to claim a £500 SureStart maternity grant instead. You don’t have to pay this back.

Other help with funeral expenses

If you are getting certain benefits and have to pay the funeral expenses of a relative or close friend, you might be able to apply for a Funeral Payment.

Can I get a Budgeting Loan?

You can apply for a Budgeting Loan if you’re getting one of these benefits:

• Pension Credit
• Income Support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance.

You must have been claiming for at least 26 weeks, either consecutively or with a break of no more than 28 days.

The minimum amount you can ask for is £100, but there are maximums based on your household circumstances:

• £384 if you’re single
• £464 if you’re part of a couple
• £812 if you have children.

Some things affect the amount of loan you can ask for, like:

• existing Social Fund loans
• savings over £1,000 (or £2,000 if you’re 63 or over).

How to apply for a Budgeting Loan

You can apply online on the GOV.UK website. This option isn’t available in Northern Ireland.

You can also download, print and fill in Form SF500 from the GOV.UK website.

Or ask for the form at your local Jobcentre Plus (or Jobs and Benefits Office in Northern Ireland).

Paying back a Budgeting Loan

Loan repayments are interest-free and worked out at the time your loan is agreed.

Depending on the amount you borrow, you normally have to pay it back within two years.

Repayments are usually automatically taken out of your benefits.

If you stop getting benefits while you’re paying back the loan, you’ll need to agree another way to pay the money back.

If you have a loan but can no longer afford the agreed repayments, ask the office that paid you to work out another repayment plan. It’s important you don’t get into debt trying to pay off the loan.

What is a Budgeting Advance?

If you’re claiming Universal Credit you should claim a Budgeting Advance instead of a Budgeting Loan. This is the equivalent of a Budgeting Loan for people who are claiming Universal Credit.

To get a Budgeting Advance you must:

• have been getting Universal Credit for at least six months – unless you need the money to help you get a job or keep an existing job
• have earned less than £2,600 if you’re single (£3,600 if you’re in a couple) in the past six months
• not be paying off another Budgeting Advance.

You will usually have to start paying back your Budgeting Advance out of your next Universal Credit payment and pay it back within 12 months.

Ask your work coach at your local Jobcentre Plus about how to claim a Budgeting Advance.

The minimum amount you can ask for is £100, but there are maximums based on your household circumstances:

• £384 if you’re single
• £464 if you’re part of a couple
• £812 if you have children

Other help you can get

Local authorities in England and the devolved governments in Scotland, Wales and Northern Ireland can provide help and support in an emergency.

• If you live in England, contact your local council to find your local welfare assistance scheme.
• If you live in Scotland, find out about the Scottish Welfare Fund on the Scottish Government website.
• If you live in Wales, find out about the Discretionary Assistance Fund on the Welsh Government website.
• If you live in Northern Ireland find out about Discretionary Support on the nidirect website

Help if you’re waiting for your first benefit payment

If you need money while you’re waiting for your first benefit payment or because you have had a significant change of circumstances, ask your Jobcentre Plus (Jobs and Benefits Offices in Northern Ireland) about a short-term benefit advance.

If you’re waiting for your first Universal Credit payment, you can ask for a Universal Credit Advance instead.

This article is provided by the Money Advice Service.

When it comes to spending, borrowing and avoiding charges, each type of payment card has different pros and cons. This guide tells you more about the main options.

• Cards for borrowing, cards for spending
• Credit cards
• Debit cards
• Store cards
• Prepaid cards
• Charge cards
• Credit builder cards

Cards for borrowing, cards for spending

There are two main types of card:

• cards that let you borrow money and pay it back later (credit cards, store cards and charge cards)
• cards that only let you spend money you already have or within an agreed overdraft facility (debit cards and prepaid cards).

Which one suits you best will depend on your finances, and your personality too.

This could depend on whether you’re confident about paying off your card bills and disciplined enough to do so, or whether you feel more comfortable not getting into debt.

Credit cards

A credit card is a way to buy things now and pay later.

You can run up a bill up to an agreed limit and either pay it off in full at the next monthly statement, or repay over time as long as you make at least the minimum payment each month.

Who are they for? Usually only for people with organised finances – otherwise there is a real risk of spiralling into debt. Even if you set up a Direct Debit to pay the full amount monthly, if you are not on top of your bank balance you could go overdrawn when the payment comes out. They’re available to over-18s only.

• Credit cards give good protection against fraud.
• Credit cards provide extra protection if you have problems with the goods or services you have bought that cost between £100 and £30,000.
• Credit cards provide an easy way to pay for the unexpected.
• If you don’t pay back the full amount there’s usually hefty interest on the money you’ve borrowed – unless you can get a card with a 0% introductory offer and make sure you repay in full before the introductory period ends.

Debit cards

A debit card is like a direct link to your bank account – when you shop or buy services the money is taken out of your account right away.

Who are they for? – almost anyone with a standard UK current account, though if you plan to use it overseas you should check the charges first.

• There’s no borrowing involved, except if you go into (or over) your overdraft.
• Debit cards have some fraud protection against unauthorised transactions, but not as much as credit cards.

They don’t have the same legal protection, but you might be able to claim under ‘chargeback’ (part of the card scheme rules) if you have problems with purchases.

Debit cards might be worth using if you are buying something that costs less than £100, as credit cards don’t protect you for purchases you make under this amount.

Store cards

Store cards are a type of credit card you can only use in one chain of shops.

Who are they for? Only a good idea for people who often spend a lot in a particular store, and are absolutely sure they’ll pay off the bill every month.

• • They come with deals and discounts in-store.
  • The interest rate is usually much higher than a credit card, so it will cost you more if you don’t repay in full each month.

Unlike store-branded credit cards, you can only use them in that store.

Prepaid cards

A prepaid card works a bit like a gift card – you top it up with money, and you can only spend up to that amount.

Who are they for? – often used by travellers to carry holiday money, and by anyone without a normal bank account – generally, teens and people with poor credit ratings.

• Safer than cash, since you can cancel the card if it gets lost or stolen.
• They’re not accepted everywhere, and you might pay fees for using them or for topping them up.

Charge cards

Charge cards work a lot like credit cards – you buy now and pay the money back on your monthly repayment date.

However, with a charge card, you must pay off the balance every month. You can’t run up a bill and pay it back later.

Who are they for? – generally only for people on high incomes, who can afford to repay in full each month, or for business use.

There are also a few basic charge cards, but they don’t have much advantage over credit cards.

• They often come with extra perks such as travel insurance or rewards, but usually at the price of a high annual or monthly fee.
• If you don’t pay your bill the charges can be much higher than credit card interest – and your card might be cancelled.

Credit builder cards

If you’ve been turned down for a credit card because you’ve got a poor credit rating, one way of rebuilding your credit history is to use a credit builder card.

But the interest rates are usually much higher, and if you miss payments or only pay the minimum each month, it could end up making your credit rating worse.

See recommendations for the best cards to rebuild your credit score on the Money Saving Expert website

There are more things you can do to improve your credit rating.

This article is provided by the Money Advice Service.

If your bank, building society or credit union went bust you would be entitled to compensation through the Financial Services Compensation Scheme for a maximum of £85,000. Find out what happens for joint accounts and if you have money with two banks in the same banking group.

• What is the Financial Services Compensation Scheme (FSCS)?
• What the Financial Services Compensation Scheme covers
• What the Scheme doesn’t cover
• How much compensation will you get?
• Beware of firms offering claims management services

What is the Financial Services Compensation Scheme (FSCS)?

The Financial Services Compensation Scheme (FSCS) can pay out compensation to people who end up out of pocket because a bank or other financial services provider goes bust.

It also helps people who lose money because of poor advice from a financial adviser who has since gone out of business.

What the Financial Services Compensation Scheme covers

The scheme covers several different kinds of financial services.

You could get compensation if:

• You lost money in deposit accounts with a bank, building society or credit union if the firm fails. As long as you didn’t have more than £85,000 with a single institution. Use Which?’s tool to find out which banks are part of the same group.
• Your insurance company goes bust. The Financial Services Compensation Scheme can pay protected claims and try to arrange for, or help with, the transfer of the insurance business to another company if this is cost effective and practical.
• Your pension provider goes bust. The scheme only covers pensions regulated by the Financial Conduct Authority – you can see an overview of which schemes are and aren’t covered on The Pensions Advisory Service website.
• You lost money because you got poor financial advice, or your financial services provider committed fraud. In this case, the scheme might cover you if the financial services provider is unable, or likely to be unable, to pay claims against it.

Protection of temporarily high balances

It’s worth noting that depositors with temporary high balances might have protection under the FSCS for up to £1m, for up to six months from the date the account was first credited.

Cover for temporary high balances is only available to individuals and not to companies.

If, for example, you sell your home and as a result have an unusually high balance in your account, your balance might be temporarily protected if your bank goes bust, even if it is higher than the £85,000 limit.

What the Scheme doesn’t cover

You are not covered by the Financial Services Compensation Scheme if:

• The company is still in business. You must complain to them first, and then take your case to the Financial Ombudsman, if you are not satisfied. The scheme does cover future claims against firms still in business.
• The firm wasn’t responsible for your loss. For example, if your loss was caused by an underlying investment going bust.
• The company was not authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority. You can find out if yours is covered using the Financial Services Register.
• The company was based in the European Economic Area (EEA). All deposit-takers with headquarters in the EEA must sign up to their home country’s deposit compensation scheme. All European countries are required to have a compensation limit equivalent to €100,000.
• Your claim relates to business that took place before a certain date. This date varies depending on the type of claim – you can check key dates on the Scheme’s website.

If you think you’ve been sold a product that wasn’t suitable for you and the firm has gone bust – mis-selling – you might be able to claim compensation.

How to make a claim

When a bank or building society goes out of business the Financial Services Compensation Scheme, will automatically pay out depositors with eligible deposits up to £85,000.

Customers of other types of financial services may have to contact the FSCS directly.

How much compensation will you get?

There are limits on what the scheme will pay out.

You need to be particularly careful how much money you keep with each:

• Bank,
• Credit union, or
• Building society

If you have savings above the compensation threshold, how you spread your money between different banking groups.

If you have only one account

Cash you put into UK banks or building societies (that are authorised by the Prudential Regulation Authority) is protected by the Financial Services Compensation Scheme (FSCS).

The FSCS deposit protection limit is £85,000 per authorised firm.

If you have more than one account with the same bank or building society

The maximum you would get is still £85,000, even if the total of all your different accounts with the same bank added up to more than this.

If you have more than one account, but with different banks and building societies

The level of protection you have will depend on which banks and building societies your accounts are with.

The Financial Services Compensation Scheme will only pay out its maximum of £85,000 per person, for each ‘authorised institution’ or banking group.

Some bank brands are actually owned by a larger bank company. For example, First Direct is owned by HSBC. So, if you had £80,000 with First Direct and £10,000 with HSBC, you would have a total of £90,000 with HSBC Bank Plc. That means £5,000 would not be covered by the FSCS.

If you have a joint account

If you have a joint account, the Financial Services Compensation Scheme deposit protection limit is £170,000.

Beware of firms offering claims management services

It is completely free to make a claim with the Financial Services Compensation Scheme.

But, some companies will offer to help you make a claim and charge you a fee.

This can be as much as a quarter of your compensation plus VAT – so if you got £2,000 back you could end up paying the company as much as £600.

This article is provided by the Money Advice Service.