The subsistence allowance used to be one of the basic pillars of aid for material need. However, from October 2025 it will be completely replaced by a new so-called super-benefit. What does this mean for existing recipients, what has changed in the assessment of entitlements and how can you make sure you don’t lose your support?
The subsistence allowance was a benefit to help people in material need, which was intended to provide them with the means to meet at least the basic needs of life – food, hygiene or clothing. It was available to those who, even after taking into account all their income (including other benefits, maintenance or housing benefit), did not reach the so-called subsistence amount. This was set by law but could be adjusted for different people – for example, in the case of dietary allowance, homelessness or children. The amount of the benefit was therefore not fixed, but was calculated individually as the difference between the subsistence minimum and the actual income.
This benefit was often directed towards the most vulnerable groups – for example, the long-term unemployed, the poorly educated, single parents, and the homeless. Typically, the recipient had no other source of income and the benefit made up the majority of their budget. At the same time, the state insisted that the person try to improve his or her situation – for example, by actively cooperating with the labour office, undergoing retraining, or performing public service. If he refused to do so without good reason, he could lose part of his support.
Living allowance was often supplemented by other benefits, such as housing benefit. Its termination and incorporation into the so-called ‘super allowance ‘ thus represents a fundamental transformation of the whole system of assistance to the poorest.
Getting to grips with the new system can be tricky. Our lawyers can help you get what you’re entitled to quickly and efficiently – in a clear and straightforward way.
Assessing entitlement to the living allowance was quite complex and often required close cooperation with the authorities. The basic question was whether the claimant was actually in material hardship – i.e. whether their income, even after all other benefits, was below the statutory subsistence amount. The calculation included not only the applicant’s own income but also the income of all persons living in the same household.
An assessment of efforts to improve the situation was also considered. The applicant had to prove that he or she was actively trying to work – being registered with the employment office, cooperating in job placement or participating in public service. If he or she did not demonstrate this activity, the authority could reduce or withdraw the benefit altogether.
The main problem was, however, the fragmentation of the system – the subsistence allowance was often combined with the housing supplement or the emergency immediate assistance. This led to complicated administration, long deadlines and confusion in communication with the authorities. The introduction of the super allowance was intended to eliminate these shortcomings and to consolidate the assistance into one clear benefit.
From October 2025, a completely new system has been in place, replacing the previous living allowance and other benefits. Instead, the state pays one unified social benefit, known as the super benefit. Its ‘subsistence’ component covers the basic needs of people and households on very low incomes, similar to the old benefit – but with some key differences.
The super allowance is awarded on the basis of a wider range of assessed data – in addition to household income, housing costs, the total assets of household members and the ‘work activity of adults’ are also monitored. The amount of the benefit is then based on the difference between the recognised costs and the household income.
A major change is that it is no longer possible to apply separately for a specific benefit – for example, just for food aid or housing benefit. The consolidation has brought less paperwork but also stricter rules. Households with higher assets or no work activity often no longer qualify for assistance.
We’ve detailed exactly how the super allowance is calculated, including how to claim it and what to prove, in a separate article.
You apply for the benefit by making a single claim for the super benefit, on the basis of which the authority will assess whether you are entitled to the different components of the benefit, including the living allowance.
You can apply electronically via the MLSA portal (if you have a bank identity), in person at a Job Centre or by post. Along with the application, you need to provide a number of documents – confirmation of household members’ income, housing costs and information on assets. The Office verifies most of the information itself, but will not start the procedure without the consent of all adult members of the household.
A major change from previous benefits is the means test – if a household owns more than one property, a luxury car or has financial reserves above the legal limit, it will not receive the benefit.
The authority has 90 days to make a decision, but it often gets it sooner. The benefit is paid retrospectively, for the month you apply. The advantage is that the superannuation components do not have to be claimed separately – one form assesses everything.
The amount of the living allowance component of the superannuation is not a fixed amount – it depends on the minimum subsistence level, household income, housing costs and means-test results. Jobcentre Plus will first find out how much your eligible living costs are and whether the household meets the ‘subsistence’ or ‘minimum subsistence’ level. Then it will compare how much money you have left after paying for housing.
The aim of the subsistence component is to ensure that the household has at least the minimum subsistence amount left after housing costs. If this is not the case and the household meets the other conditions (especially income and assets), the state will pay the balance – the difference will be covered by the living allowance.
The upper limit of the benefit is not set by law as a specific amount, but follows logically from a combination of all the input data. Thus, households with low incomes, high costs and no significant assets will receive higher assistance. Household composition and work activity are also taken into account – those who do not work and are not exempt may receive less. The benefit is always paid in arrears and the amount may change every three months, when it is recalculated according to current income and expenditure. However, the advantage is that even a one-off increase in income (for example, for part-time work) does not have to mean automatic withdrawal of the benefit.
The long-standing child benefit is being abolished from October 2025 and replaced by the so-called child bonus, which is one of the components of the new super benefit. What does this mean in practice? We look at this in our article.
Subsistence allowance, previously a separate material hardship benefit, is being incorporated into a new unified benefit – the super benefit – from October 2025. It was previously used to help people and households without sufficient income, often long-term unemployed or sick, to ensure at least a subsistence or subsistence level. Now, the ‘subsistence’ component is part of the superannuation and its award depends on a more comprehensive assessment of the situation – in addition to income, housing costs, assets and work activity of all adult members of the household are also assessed. Applications are submitted via the MLSA portal, in person or by post, and decisions are issued by the Labour Office with a time limit of up to 90 days. The amount of support can change every three months and is not fixed in advance – it depends on the specific situation of the household. At the same time, the system is more sensitive to one-off fluctuations in income than before, so benefit payments do not have to be stopped immediately.
Any household that, after paying for housing, falls below the minimum subsistence level and meets income, asset and work requirements.
Yes, you need to make a new claim for the superannuation – by 31 December 2025, otherwise the payment will stop from May 2026.
Every three months based on newly documented household income and expenses.
Not necessarily – the new system takes into account short-term fluctuations and does not immediately penalize every increase in income.
Have you applied for sickness, maternity, parental allowance or other benefit and instead of the expected support, you received a rejection? Or were you awarded a benefit in a lower amount than is appropriate for your situation?
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