What is the Healthy Start scheme and is it taxable?

Full answer

Healthy Start is a UK-wide scheme (administered by the NHS Business Services Authority) that provides financial help towards buying healthy food and milk for pregnant women and families with children under four, where the household is on a low income or receives certain qualifying benefits. **How it works** Eligible applicants receive a Healthy Start prepaid card, topped up regularly (broadly weekly, though the exact cadence and amounts are set and reviewed by the scheme) which can be used to buy plain cow's milk, fresh, frozen or tinned fruit and vegetables, pulses, and infant formula milk at shops that accept the card. Pregnant women under 18 are automatically eligible regardless of household income; women aged 18 or over and families with children under four generally need to be receiving a qualifying benefit (such as Universal Credit with household income under a set threshold, Child Tax Credit, Pension Credit, or Income Support) to qualify. **Vitamins** Alongside the card, eligible pregnant women and young children can also receive free Healthy Start vitamins (containing folic acid, vitamin D and vitamin C for pregnant women, and vitamin drops for young children), supporting nutrition during pregnancy and early childhood. **Tax treatment** Healthy Start payments are a targeted welfare support scheme, not earned income, investment income or a taxable benefit in kind. The value loaded onto the card is entirely tax-free and does not need to be declared on a Self Assessment tax return, and it does not use up any Personal Allowance, savings allowance, or other tax-free threshold. **Effect on other benefits** Because Healthy Start is specifically designed to support low-income households already receiving means-tested benefits, it is generally disregarded as income when your other benefit entitlements (such as Universal Credit or Housing Benefit) are recalculated -- it is not treated as additional household income that would reduce those other awards. However, because rules can be updated, if you are unsure how a specific benefit calculation treats Healthy Start, check directly with the relevant benefit's guidance or your local welfare rights service. **How to apply** Applications are made online via the Healthy Start website, with eligibility checked against the qualifying benefits or age criteria. Once approved, the prepaid card is sent by post and can then be topped up automatically for as long as the applicant remains eligible (until the child turns four, or earlier if circumstances change). **Worked example** A 24-year-old expectant mother receiving Universal Complete with household income under the qualifying threshold applies for Healthy Start. She receives a prepaid card topped up regularly, which she uses at the supermarket to buy milk and vegetables, plus free vitamins during her pregnancy. None of this support is taxable, does not need to be reported to HMRC, and does not reduce her Universal Credit award, since it sits outside the normal definition of income used in that calculation.