Universal Credit claimants could get more than £800 if they're struggling to make ends meet this month.
On top of their usual Universal Credit payment, which covers costs like rent or childcare, people could get extra payments for unforeseen circumstances. People who have to deal with a broken cooker or paying funeral costs, for example, might be eligible for budgeting advances.
It's known as a Budgeting Advance and it's a loan that will need to be repaid. The DWP reclaims the cash through your regular Universal Credit payments.
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This means your payments will be lower until you pay it back. If you no longer get Universal Credit you will need to repay by other means, such as from wages or other benefit you may be getting.
The smallest amount a person could borrow is £100. However, it is possible to get up to:
- £348 if the claimant is single
- £464 if they're part of a couple
- £812 if they have children
What will be awarded will be dependent on whether the claimant has savings of over £1,000 and can pay the loan back. To be eligible for a budgeting advance, all of the following must apply:
- The claimant has been getting Universal Credit, employment and support allowance, income support, jobseeker’s allowance or state pension credit for six months or more, unless they need the money to help them start a new job or stay in work
- They've earned less than £2,600 (£3,600 together for couple) over the past six months
- They've paid off any previous budgeting advance loans
To apply for a budgeting advance, claimants will need to contact their local Jobcentre Plus work coach for assistance.
To be eligible for Universal Credit initially a person must be on a low income or out of work entirely.
On top of this, claimants must be aged between 18 and state pension age, have less than £16,000 in savings and be living in the UK.
How do I apply?
To apply for a budgeting advance you can update your journal in your universal credit account contact your nearest Jobcentre Plus or call the universal credit helpline on 0800 328 5644 between 8am and 6pm from Monday to Friday.
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