Millions of Britons could be missing out on crucial financial support because they don't understand which benefits require means-testing. The Department for Work and Pensions (DWP) operates a complex system where some payments depend entirely on your financial situation, while others are based on different criteria.
What Exactly Are Means-Tested Benefits?
Means-tested benefits are financial supports where your eligibility and payment amount depend on your income and savings. If your financial resources exceed certain thresholds, you might not qualify for these payments at all.
The Complete List of DWP Means-Tested Benefits
Here are the key benefits where your financial situation matters:
Universal Credit
The flagship benefit replacing six legacy benefits, Universal Credit considers both your income and savings. If you have over £16,000 in savings, you typically won't qualify.
Income-based Jobseeker's Allowance
Designed for those actively seeking work, this payment assesses your income and capital to determine eligibility.
Income-related Employment and Support Allowance
For those with health conditions affecting their ability to work, your savings and income play a crucial role in qualification.
Income Support
Available to specific groups on low incomes, including some carers and single parents, with strict financial criteria.
Pension Credit
This vital support for older people comes in two parts - Guarantee Credit and Savings Credit - both considering your income and savings.
Tax Credits
While being phased out, both Working Tax Credit and Child Tax Credit remain means-tested for those still receiving them.
Housing Benefit
Help with rent payments depends on your income, savings, and household circumstances.
Support for Mortgage Interest
Loans to help with mortgage interest payments for those receiving certain benefits, with eligibility tied to your financial situation.
Benefits That Aren't Means-Tested
It's equally important to understand which popular benefits don't consider your financial situation:
- Contributory Employment and Support Allowance
- New-style Jobseeker's Allowance
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Carer's Allowance
- Child Benefit
- State Pension
Why Understanding This Distinction Matters
Knowing which benefits are means-tested can help you plan your finances better and ensure you're claiming everything you're entitled to. Many people mistakenly assume they earn too much to qualify for support, when in reality they might be eligible for certain payments.
The savings threshold is particularly important - for most means-tested benefits, having over £16,000 in savings typically disqualifies you, while having between £6,000 and £16,000 can affect how much you receive.
With the cost of living crisis continuing to impact households across the UK, understanding the benefits system has never been more crucial. Make sure you're not missing out on financial support that could make a significant difference to your household budget.
