You may be eligible to apply for a Budgeting Advance if you need help with essential or unexpected costs – for example, for repairs to your home, or to pay for a funeral
If you need help with emergency costs, you may be able to apply for an interest-free loan from the Department for Work and Pensions (DWP).
The DWP allows you to borrow up to £812 through a Budgeting Advance if you claim Universal Credit and meet the specific requirements.
You may be eligible to apply for a Budgeting Advance if you need help with essential or unexpected costs. For example, this can include repairs to your home, or to pay for a funeral.
You can find a list of scenarios which may qualify for a Budgeting Advance below. But as this is a loan, it needs to be paid back, although you’re not charged interest on what you borrowed.
The DWP will recoup the loan through your future Universal Credit payments. You normally need to repay the money borrowed within two years.
The smallest amount you can borrow from the DWP is £100, while the maximum is £348 if you’re single, £464 if you’re in a couple, or £812 if you have children.
If you have more than £1,000 in savings, or £2,000 if you or your partner are 63 or over, then you amount you may be able to borrow will be reduced by however much you have in savings over these thresholds.
For example, if you have £1,100 in savings, your Budgeting Advance or Budgeting Loan will be reduced by £100.
You can apply for a Budgeting Advance if you have been getting Universal Credit for six months or more. You can be claiming for less than six months if you need the money to help you get or keep a job.
You must have earned less than £2,600 in the past six months, or £3,600 if you’re in a couple.
You cannot get a second Budgeting Advance if you have not paid off your first loan. Citizens Advice has listed the following scenarios which could qualify you for a budgeting advance:
- Replace broken appliances
- Buy work uniform or tools
- Unexpected expenses
- Repairs to your home
- Travel expenses
- Maternity expenses
- Funeral expenses
- Moving costs or rent deposit
- Essential items
To apply for a budgeting advance, you can put a message in your Universal Credit online journal, contact your nearest jobcentre or call the Universal Credit helpline on 0800 328 5644.
You will still need to repay your budgeting advance even if you stop claiming Universal Credit. The DWP can contact your employer or a debt collection agency to recover what you owe if you stop paying.
If you have been claiming Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, or Pension Credit for six months or more, you may be eligible for a Budgeting Loan instead.
