The Department for Work and Pensions (DWP) has confirmed that some Universal Credit claimants may be eligible for an interest-free loan of up to £815 through the Budgeting Advance scheme. The one-off payment could provide a financial boost for households across the UK ahead of Christmas, helping to cover essential expenses such as furniture, clothing and home repairs.
Who can apply and how much can you get
People already receiving Universal Credit who need support with a significant one-off cost may be able to apply for a Budgeting Advance, although the amount available depends on their individual circumstances. The smallest amount you can borrow is £100. You can get up to £348 if you're single, £464 if you're part of a couple and up to £812 if you have children.
To get a Budgeting Advance, you'll need to have been getting Universal Credit, Employment and Support Allowance or Pension Credit for six months or more, and need the money to help you start a new job or stay in work.
Repayment and eligibility rules
The loan is repaid through future Universal Credit payments, with repayments typically spread over 24 months and beginning from the claimant's next scheduled payment. A Budgeting Advance cannot be used to cover everyday living expenses, including food, household bills such as gas and electricity, or rent. It also cannot be used to repay existing debts.
You will not be eligible if you've earned more than £2,600 (£3,600 together for couples) in the past six months or you have not paid off any previous Budgeting Advance loans, as you can only have one at a time.
