More than 8.4 million people across Great Britain are now receiving Universal Credit, with many households still grappling with rent, food and energy expenses despite benefit rises last month.
Those experiencing financial hardship may be eligible for additional assistance through programmes provided by the Department for Work and Pensions (DWP), local authority grants and emergency payments that many claimants are unaware even exist. Certain forms of assistance require repayment through future Universal Credit payments, while others do not. Listed below are some of the primary hardship programmes and financial support options available to Universal Credit recipients.
Budgeting Advances
Universal Credit recipients may be eligible to apply for a Budgeting Advance to help meet emergency or unforeseen expenses. This can include help paying for furniture or household items, work-related expenses, rent in advance, emergency travel costs, and replacing essential appliances.
The sum available depends on individual circumstances, including whether someone is single or has children. The minimum amount you can borrow is £100. You can receive up to £348 if you are single, £464 if you are part of a couple, or £812 if you have children. Budgeting Advances are interest-free but must be repaid through future Universal Credit payments. To be eligible, claimants typically need to have been receiving Universal Credit for at least six months, though certain exceptions apply. Comprehensive information on Budgeting Advances can be found on GOV.UK.
Hardship Payments
People whose Universal Credit payments have been cut due to a sanction may still be eligible to apply for a hardship payment. These payments are designed to assist people in covering basic living expenses if they are unable to afford necessities such as food, heating or hygiene products. Hardship payments are not issued automatically and typically need to be applied for. DWP guidance states that claimants generally need to demonstrate that they or someone in their household would face hardship without the payment. The money normally has to be repaid. You can read the full guide to Universal Credit hardship payments on GOV.UK.
Discretionary Housing Payments
Those struggling to meet rental costs may be eligible for additional support through a Discretionary Housing Payment (DHP). These payments are managed by local councils and can assist those 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 criteria vary depending on the council and individual circumstances. Full details can be found on GOV.UK for those in England.
Household Support Fund and Local Welfare Assistance
Many councils across England run 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, assistance is frequently provided through the Household Support Fund.
Universal Credit New Claim Advances
Those making a new Universal Credit claim may also be able to apply for an advance payment while awaiting their first full payment. Universal Credit is typically paid monthly in arrears, which means many new claimants endure a wait of approximately five weeks for their initial scheduled payment. Advance payments are intended to assist people in managing during that timeframe. However, the funds must be repaid through subsequent Universal Credit payments. A comprehensive guide to Universal Credit advance payments is available on GOV.UK.
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. A full guide to Universal Credit can be found on the Citizens Advice website.
