People on Universal Credit across the country could receive thousands of pounds on top of their benefits thanks to a little-known add-on.

The money, paid in cash, is completely free and never needs to be repaid nor will it affect your future Universal Credit amount.

A common misconception is that Universal Credit is only for people who are not in work, when the most recent figures available show that there are up to 2.4 million people in work while receiving Universal Credit.

This means that 38 percent of all people who claim this benefit are actually working and must claim UC to supplement their low income.

A government report states: “Universal Credit is available to people on low incomes as well as those who are unemployed.

“There were 2.4 million people on Universal Credit in work in December 2023, or 38% of all people on Universal Credit. This figure has been stable since January 2023.”

The biggest benefit for people on Universal Credit is for those who have children.

If you’re claiming Universal Credit, you can also claim up to 85 percent of your childcare costs, provided you’re working or about to start working – that’s an offer of provable employment.

The maximum amount you can claim is £1,739.37 for two or more children, which works out to a very handy £20,827.44 per year.

Other benefits you can claim from Universal Credit include a £2,000 energy bill grant and a council tax reduction worth up to £2,171 for an average property in the band D.

Depending on the policy set by your local council, you could lose up to 100% of your council tax bill if you claim Universal Credit – each area has a different policy, so you’ll need to check how much you could get back.

Water companies can also offer lower rates to Universal Credit customers, worth around £328 towards water bills.

Several energy companies offer energy bill grants to those on Universal Credit, which can be used to clear arrears. You can also ask for less advertised social rates that offer cheaper rates.

It’s the same as water bills: again, water companies often offer reduced social rates which could see you issue much lower bills than normal.

Finally, telephone and broadband providers also offer social rates, even if these are never announced. This means those on Universal Credit can get a super cheap broadband deal or phone contract from just £10 a month.

In total, someone maximizing each offer could get up to £26,871 on top of their regular Universal Credit payments.