DWP : The cost-of-living crisis is putting pressure on household budgets up and down the UK, but parents may be able to receive some help with DWP-funded support schemes potentially worth as much as £1,770 in 2023.
As families across the country are left grappling with balancing energy costs, rising food prices and everyday expenditure, it will mean that these support measures will go even further as a vital lifeline.”
What Support Can Parents Expect in 2025?
The DWP has continued and built on a number of important programmes targeted at families with children. Many parents are unaware they may be eligible for these benefits, potentially losing out on thousands of pounds worth of support.
Sarah Matthews, 36, a mother of two from Leeds, recently learned she was entitled to extra help: “I’d been struggling for months, scrambling to cut corners where I could, when a friend suggested I check my DWP entitlements.
I was amazed to discover that I was eligible for more than £1,200 of support I hadn’t claimed. It’s made a huge impact on our family budget.”
Help for childcare costs through Universal Credit – Up to £1,014
The government brought good news to parents who claimed Universal Credit, with the announcement that the increased allowances for childcare costs would continue for the whole of 2025.
Working parents can claim back as much as £1,014 a month for one child and £1,739 for two or more children – an increase of almost 50 per cent on recent years.
This support is available for registered childcare costs, such as nurseries, childminders and after-school clubs.
The payment system means that parents will be able to reclaim 85% of their childcare costs, up to these maximum amounts.
“My ability to work has been transformed thanks to the increased childcare support through Universal Credit,’ explains Tom Hargreaves, a single father from Manchester.
“I was basically working to pay for childcare before, but now I can actually save some money and know my daughter is getting the best care possible.”
Claimants must be in paid work or have a job offer to qualify.
Children must be in school full-time to be eligible for claims, which will be submitted through the Universal Credit online portal — parents will generally need to provide invoices from their provider as proof of care costs.
Child benefit rate increase - Up to £316
Child Benefit remains a reliable source of funds paid to families across the UK. The rate rises in April 2025 mean parents now get £25.60 a week (around £111 a month) for their first or only child and £16.95 a week (around £73 a month) for each additional child.
For a couple where they have two children this would represent payments of about £316 over a typical two-month period – a significant contribution to household finances.
It is also worth noting that, while Child Benefit is available to everyone, the High Income Child Benefit Charge comes into effect when one parent in a household earns more than £50,000 a year.
This benefit is gradually withdrawn until income reaches £60,000, at which point, the tax charge is equal to the total amount of Child Benefit paid.
Margaret Wilson, a benefits adviser with over 15 years’ experience, says: ‘Many parents who earn just over the threshold erroneously believe that they shouldn’t claim Child Benefit at all.
But so far, even if you have to repay some of it via tax, it is still worth claiming to safeguard your National Insurance credits, which are precious for your future state pension.
Sure Start Maternity Grant – £440
New parents on lower incomes can apply for the Sure Start Maternity Grant, which is a one-off payment of £440 that can help with the costs of having a new baby.
Unlike some other benefits, this grant does not need to be repaid.
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The application window is relatively limited — claims can only be made within 11 weeks prior to the baby’s due date or within six months of the child’s birth.
The application process needed form SF100 (Sure Start Maternity Grant) and signed confirmation of a health professional.
“The Sure Start grant was a godsend when our twins came along,” says Priya Sharma, from Birmingham.
“Those first weeks felt overwhelming enough without the added worry of figuring out how we would cover all that they needed. That £440 went towards their cot and other things we could not have managed without.”
Further Aid Steps in 2025
Other support measures — in addition to these main programmes — can help parents this year, and can contribute hundreds of pounds more on top of what is already available:
Healthy Start Vouchers – Up To £442 A Year
Women who are pregnant or people with a child under the age of four on a low income can sign up for Healthy Start vouchers, which help with purchasing milk, fruit, vegetables and baby formula.
For qualifying families, these vouchers are £4.25 per week (around £221 over six months) for each pregnant woman and children aged one to four and £8.50 per week for children under the age of one.
“To assist families during these important developmental stages, the Healthy Start scheme makes sure having limited money does not prevent families from managing to feed themselves healthily,” says nutritionist Dr. Eleanor Freeman. “Proper nutrition during pregnancy and early childhood cannot be overstated for long-term health benefits.”
Applications are now made online through the NHS Healthy Start website, with eligibility based on receipt of certain benefits including Universal Credit (with a household income of £408 per month after tax or less).
Free School Meals — Saving £570 Per Child
Child poverty is most concentrated among families receiving Universal Credit with household income under £7,400 (before benefits are included): These families are entitled to free school meals for their children (equating to around £570 per year per child if an average meal costs £3, assuming a 190-day school year)
Beyond the direct saving of money, research suggests, children getting free school meals also benefit from greater concentration, better academic performance and the development of healthy eating habits.
(Several local authorities have added free school meal schemes going beyond the national eligibility criteria so it’s worth checking, even if you think you wouldn’t qualify, with your child’s school or local council.)
Possible worth hundreds: Council tax reductions
Many parents miss out on potential Council Tax reductions, which differ across local councils but can dramatically reduce this expensive household bill.
If you are a single parent you can receive an automatic 25% reduction and if you have a low income you may qualify for greater assistance from the Council Tax Reduction scheme (also known as the Council Tax Support).
“Council Tax can be one of the biggest monthly outgoings for families, so these reductions can have a real impact on household budgets,” says financial adviser James Hendricks.
“The process for applying varies between local authorities, but is usually quite straightforward and well worth doing.”
How to Determine if You Qualify
With so many support schemes in place it can feel overwhelming to know precisely what you could be entitled to. Fortunately, a few resources can aid in the process:
Benefits calculators: Check out independent tools, such as those from Turn2us, entitledto and Policy in Practice that can give you a quick, anonymous assessment of what you might be entitled to based on your individual circumstances.
Citizens Advice: The advisors there can give you tailored advice on what help is available and can help you fill out applications.
DWP online accounts: Current entitlements and options to request further assistance are visible in your Universal Credit journal or online account.
Local council websites: These usually include details of local support schemes, such as Council Tax discounts and discretionary housing payments.
Diane Moore, welfare rights specialist, points to the need for regular re-assessments:
“Entitlement to benefits changes all the time, not only with the individual’s circumstances but with policy changes. Families should review their entitlements at a minimum of twice a year or when there is a change in circumstance — a move house, job change or new baby, for instance,” he recommends.
The data through October 2023 will be used to train, and they will embed candidates into a batch for training.
The government has indicated that it will make further changes to its family support systems later in 2025, including the potential for changes to Universal Credit work allowances for parents as well as greater childcare support for parents with school-age children.
Full details are still awaited confirmation, but this direction of travel should give an indication that the government is starting to recognise the unique financial pressures parents are under in the current economic climate.
“Going through the benefits system could be a part-time job in itself,” admits Martin Drake, director of a family support charity.
“But if you take the time to understand everything you’re entitled to and claim it, it can make an enormous difference in your family’s financial security. A lot of the parents we support realise they’ve been losing out on thousands for years.”
Take Action Now
With up to £1,770 on offer (and potentially more in some circumstances) through the programmes outlined above, parents across the country are as ever urged to check their entitlement as soon as possible.
It doesn’t have to be overwhelming: Start with a benefits calculator for a high-level snapshot, then work through applications for any assistance for which you potentially qualify.
Bear in mind that valid entitlements go unclaimed every year and it makes sound financial sense to make sure your family’s entitled support is being received.
Given rising household costs, tapping all the available aid could mean the difference between financial strain and financial stability for many families into 2025.