Throughout 2026 the council is running a financial inclusion programme which aims to support families away from poverty by putting more money into their pockets. Here are answers to some of the common misconceptions.
Myth: If I claim benefits, I’ll have to pay them back later – they’re only loans really
Fact: Most benefits (including Universal Credit and Child Benefit) are entitlements, not loans.
You only repay money if there has been an error or overpayment and if this is the case you should receive a letter to tell you that you’ve been overpaid, or you should notify the office dealing with the benefit.
Myth: I earn too much to qualify for any support - Only people with no income can get help
Fact: Many people who are working still qualify for support, especially help with housing costs, childcare, or energy.
Our Money Help information pages tackle subjects such as maximising income from benefits, childcare offers and work-related support, help with debt, budgeting and managing household bills, and food support, local welfare assistance and other crisis help. There are also links to trusted local and national organisations offering free, confidential advice
Myth: It’s not worth applying — the process is too complicated
Fact: Free support is available to help you apply, and tools like the Better Off Calculator give a quick indication of what you may be entitled to. The whole initial process only takes a few minutes.
In addition, we have created a bank of resources on our Money and Benefits page which can also give guidance on the process.
Myth: If I have savings, I can’t claim anything – the savings will disqualify me
Fact: Some benefits do have savings thresholds, but not all support is affected, and you may still be eligible for help. As an example, the Crisis Resilience Fund is means-tested, so you can prove your financial position before a decision is taken on eligibility.
Myth: Child Benefit isn’t worth claiming if I earn above the 60k threshold
Fact: You should still claim Child Benefit if you earn less than £80k even if you opt to repay via the High Income Child Benefit Charge, as it protects:
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National Insurance credits (important for pensions)
- Access to other entitlements
The combined income of two parents is not taken into consideration. Child Benefit only starts to reduce if either you or your partner has an adjusted net income over £60,000, and it stops completely when your income reaches £80,000.
Myth: If I claim benefits, it will affect my credit score
Fact: Claiming benefits does not affect your credit score. In fact, the opposite may be true as seeking help early can actually prevent debt issues from worsening, which could postively affect your score.
However, some benefits such as Universal Credit may affect any applications you make for credit such as mortgages, loans or a new credit card.
Myth: I can’t get help if I’ve never claimed before – the new support measures such as the CRF are only for existing claimants
Fact: First-time claims are common — services are there to support you whether you’ve claimed before or not. Since its launch this year our Benefits Calculator has helped more than 200 households to access a combined total of more than £120,000 in benefits.
Additionally, the Crisis Payment Scheme is also designed to alleviate financial shocks such as redundancy, unexpected bills/repairs etc.
Finally, sometimes the council/government will get in touch with households who are unaware of benefits to which they are entitled. As an example, some residents may recently have received a letter from us about Pension Credit, as we have been using a government-approved data tool called Low Income Family Tracker (LIFT). This is a secure data tool developed by the organisation, Policy in Practice, and is being used by many local authorities across the UK to help improve benefit take-up and support residents earlier.
LIFT does not give the council access to your bank account; it does not change your benefits; and it is only used to identify residents who may benefit from advice or support.
Myth: If I start working, I’ll lose all my benefits immediately - work always means losing support
Fact: Many benefits are designed to support people into work, and payments often reduce gradually rather than stopping suddenly.
Myth: Support is only for people in crisis – you have to be in severe hardship
Fact: Many services are designed to prevent crisis — accessing help early is encouraged. The main aim of the Crisis Resilience Fund, as an example, is to provide a safety net for those on low incomes who encounter a financial shock, such as sudden income loss or unexpected expenses, and to invest in building stronger support in communities to enable people to better deal with crises in the long-term, thereby reducing crisis need.
Don’t forget that we have a number of partner organisations such as Citizen’s Advice Peterborough who can provide specialist help for individuals/families struggling with debt, budgeting and low income so that they can be financially stable in the long-term.
We’re also continuing/extending our community hubs, in partnership with voluntary, community and faith organisations work.
Myth: I might get into trouble if I claim something incorrectly
Fact: As before – as long as you provide accurate information, there is nothing to worry about. Advice services can help ensure your claim is correct.