Universal Credit: What is a budgeting advance and how do I apply for the money?

When applying for a universal loan or considering whether there is any additional financial support for this benefit that may require additional cash.

The good news is that there are multiple packages. In addition to a budgeting advance, which we explain in this post, you can also receive a repayment or advance payment, a hardship payment or an alternative payment arrangement.

In general, any extra money you get has to be paid back in some way, which usually means that you will automatically lose part of your universal loan until the loan is paid off.

Read more: All the financial support you can get from the government this winter

The amount of money you are entitled to depends on why you need the money and what your other circumstances are.

Let’s explain one of the additional support packages – the budgeting advance.

What is a budget advance and how do I apply for the money?

If you do take the universal loan, you may be able to get a budget advance if you have a reason to need extra money and can afford to pay it back.

Reasons you might need the cash are, for example, an emergency in your home – such as when you need to buy a new refrigerator after a breakdown – or you need to come for an interview and need help with paying for transportation, e.g. B. a train ride.

To be eligible, not only must you have a reason for the cash needs, but you must have had Universal Credit for at least half a calendar year and made £ 2,600 or less (£ 3,600 for a couple) in the last six months and you have already paid off all previous loans with a budget advance.

You can apply online, via the job center or via the Universal Credit Helpline. If accepted, you and your work coach will figure out how much you need. Do not forget that you have to repay this money. They can be claimed up to £ 812 but the smallest amount that you can get is £ 100.

If you’ve been turned down because of a budget advance, or fear you might be, don’t worry. There are several other pots of money that you may be entitled to, such as: B. the Budget Support Fund. This is a separate supply of money given to local councils to help people with essential items and goods. Contact your local authority to see if you can qualify for this.

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