Universal Credit rule change hands households in England £495 | Personal Finance | Finance

A change to Universal Credit eligibility rules will hand households in England up to £495 worth of annual savings from September.

From next month, free school meals will be made available to families on Universal Credit regardless of their household income. Currently, there is a £7,400 income cap (after tax and not including your benefits) in force that prevents Universal Credit households from qualifying for free school meals if their annual earnings are above this threshold. But from the start of the new 2026 to 2027 academic year in September, children in full-time education in England will qualify if their parents or carers get any amount of Universal Credit.

According to the DfE, the change is expected to save families up to £495 per year on school meals, while families with multiple children can make even bigger savings.

The expansion builds upon the existing provision of free school meals which already covers 2.1 million disadvantaged children, 90,000 low-income students in Further Education, and around 1.3 million infants under the Universal Infant Free School Meals programme.

Confirming the eligibility change for households on Universal Credit, the DfE said previously: “Over half a million additional pupils will become eligible for Free School Meals under the new eligibility criteria. The change means that all households receiving Universal Credit, above the current £7,400 income cap, will qualify for this support.”

The DfE added: “The new eligibility will take effect in September 2026. Families receiving Universal Credit will be able to access free school meals starting from the 2026/27 school year. This will give schools time to prepare for the increased number of meals they’ll need to provide.

“This expansion will provide significant financial relief for families. If your household receives Universal Credit, you could save up to £495 per year per child on school lunches. For families with multiple children, these savings can make a substantial difference to household budgets.”

Children in England may also be eligible for free school meals if parents or carers get income-related Employment and Support Allowance, support under Part VI of the Immigration and Asylum Act 1999, or the guaranteed element of Pension Credit.

Additionally, all state-funded primary school children from reception to year two automatically qualify for universal infant free school meals in England.

Source link