HOUSEHOLDS on Universal Credit should be aware of one-off payments worth hundreds that could help cover emergency costs.
A budgeting advance is a type of payment given to those claiming the benefit to help with paying for items such as a broken cooker.
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The advance is interest free, so you only have to pay back what you borrow. Usually you will be expected to pay the money back within 24 months.
You can apply for a budgeting advance to cover things like:
- A one-off item – for example, replacing a broken fridge
- Work-related expenses – for example, buying uniforms or tools
- Unexpected expenses
- Repairs to your home
- Travel expenses
- Maternity expenses
- Funeral expenses
- Moving costs or rent deposit
- Essential items, like clothes
How much you can get depends on a number of factors, with the lowest you can borrow £100.
Meanwhile, single people could get up to £348, while those who live with a partner could get up to £464.
The highest reward is only eligible for people with children and that is worth £812.
But it is not always guaranteed that you will be accepted for the payment.
Firstly, you must have been claiming Universal Credit, Employment and Support Allowance, Income Support, Jobseeker’s Allowance or State Pension Credit for six months or more.
There is an exception if you need the money to help start a new job or stay in employment.
You will not be eligible either if you have earned more than £2,600 in the past six months or £3,600 if you are in a couple.
You will also not qualify if you have not paid off any previous advance loans, as you can only have one at a time.
You can apply for a budgeting advance by calling the Universal Credit helpline on 0800 328 5644.
An advisor will then asses you can pay the loan back – they’ll see if you have any debts and how much you owe to help work this out.
The phone lines are open Monday to Friday, 8am to 6pm, and you’ll normally get a decision on the same day.
Alternatively, you can apply through your online account or speak to your Jobcentre Plus work coach.
Paying the advance back
You have to pay any money you were given back, but you will not be charged interest.
The money will be taken out of your Universal Credit payments, and you will pay it back over two years, starting from your next payment.
So for example, if you get an advance of £240 and you pay this back over 24 months, £10 will be taken out of your payment each month until this is paid back.
If you cannot afford your advance repayments, you can ask for the amount you pay to be lowered.
You can call the Universal Credit helpline or contact the Jobcentre helpline.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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