Universal Credit claimants facing financial difficulties can apply for a Budgeting Advance of up to £812, one of several support schemes offered by the Department for Work and Pensions (DWP) and local councils that many households do not realise exist.
More than 8.4 million people across Great Britain are now claiming Universal Credit, with many households continuing to struggle with rent, food and energy costs despite benefit payments increasing earlier this year.
Some forms of support need to be repaid within two years through future Universal Credit payments, while others do not. Below are some of the main hardship schemes and financial support options available.
Budgeting Advances
Universal Credit claimants may be able to apply for a Budgeting Advance to help cover emergency or unexpected costs. This can include help paying for furniture or household items, work-related expenses, rent in advance, emergency travel costs, and replacing essential appliances.
The amount available depends on personal circumstances, including whether someone is single or has children. The smallest amount that can be borrowed is £100. Claimants can get up to £348 if single, £464 if part of a couple, and £812 if they have children.
Budgeting Advances are interest-free but must be repaid within 24 months through future Universal Credit payments. To qualify, claimants usually need to have received Universal Credit for at least six months, although some exceptions apply. Full details can be found on GOV.UK.
Hardship Payments and Discretionary Housing Payments
People whose Universal Credit payments have been reduced because of a sanction may still be able to apply for a hardship payment. These payments are designed to help people cover basic living costs if they cannot afford essentials such as food, heating or hygiene items.
Hardship payments are not automatic and normally need to be requested. DWP guidance states claimants usually need to show they or someone in their household would face hardship without the payment. The money normally has to be repaid.
People struggling to pay rent may also be able to get extra help through a Discretionary Housing Payment (DHP). These payments are administered by local councils and can help people receiving Housing Benefit or the housing element of Universal Credit. DHPs may help people facing rent shortfalls, benefit cap pressures, housing support reductions, or temporary financial difficulties.
Eligibility rules vary depending on the council and individual circumstances. Full details can be found on MYGOV.SCOT for claimants living in Scotland and GOV.UK for those in England.
Local Welfare Help and New Claim Advances
Many councils in Scotland and England operate local welfare schemes or emergency support funds. Support available can include supermarket vouchers, fuel vouchers, emergency cash payments, help with white goods, and school clothing grants. In England, support is often provided through the Household Support Fund. In Scotland, councils may offer help through the Scottish Welfare Fund, including Crisis Grants and Community Care Grants.
People making a new Universal Credit claim may also be able to request an advance payment while waiting for their first full payment. Universal Credit is normally paid monthly in arrears, meaning many new claimants face a wait of around five weeks for their first scheduled payment. Advance payments are designed to help people manage during that period, but the money must be repaid through future Universal Credit payments.
Citizens Advice urges people struggling financially to get help as soon as possible, as some hardship schemes and local support funds have limited budgets or time restrictions.
