You may be entitled to extra help if you are part of a certain group
If you’re about to receive your Universal Credit payment or are already receiving it and your circumstances have changed, you may be eligible for an advance to help cover costs – including emergency situations. When you first apply for Universal Credit, your initial payment is usually made seven days after the end of your first assessment period.
After this is sorted, “you will then be paid monthly on the same date, unless your payment date falls on a weekend or Bank Holiday”, confirms GOV.UK. However, if you’re having difficulty covering essential costs – such as food or bills – you may be able to apply for an advance payment while waiting for your first Universal Credit payment.
You’ll repay the advance in installments which will be deducted from your future Universal Credit payments. If you’re no longer receiving Universal Credit, the repayments may be taken from your earnings or other benefits you receive.
You can apply for a Universal Credit advance:
- before you get your first payment
- if you are already being paid Universal Credit and have told us of a change in your circumstances that means you will be paid more Universal Credit but have not yet been paid the increased amount
To apply for a Universal Credit advance you can:
That’s not the only advance you can get as if there’s an emergency situation, you may be able to get help. The UK Government say that people may be able to get a Budgeting Advance to help with:
- emergency household costs such as replacing a broken cooker
- getting a job or staying in work
- funeral costs
They explain: “A Budgeting Advance is a loan, and you’ll need to repay it through your regular Universal Credit payments – your payments will be lower until you pay it back. You’ll be told how much your payments will be reduced by.”
You could receive up to 100% of your estimated Universal Credit payment. Thankfully decisions on advance applications are usually made quickly, often on the same day so you don’t need to wait.
How much will it cost me to repay?
If you apply for an advance online, you’ll be shown the repayment amounts for various repayment periods. If you apply by phone, a UC helpline adviser will assess your ability to repay the advance.
If your advance is approved, the adviser will explain the details to ensure you can meet them. They will discuss the amount you can receive, the monthly repayment amounts and when your first repayment will start.
They further explain: “Deductions are made from your monthly Universal Credit payment. The first deduction is made on the day you get your first payment.”
You must usually pay back the advance within:
- 24 months if you apply for the advance on or after 12 April 2021 because you’ve made a new claim for Universal Credit
- 12 months if you applied for the advance before 12 April 2021 because you made a new claim for Universal Credit
- 6 months if you apply for the advance because of a change of circumstances
You can ask for your repayments to be delayed if you cannot afford them. Repayments can be delayed for either 3 months if the advance is for a new claim or 1 month if the advance is for a change of circumstance however “this is only allowed in exceptional circumstances.”
Can I be refused an advance?
Yes you can be refused and there are a number of reasons why this could be the case. It could be because you:
- have not had your identity checked at the Jobcentre
- have enough money to last until your payment of Universal Credit
- live with parents, relatives or friends
- have any final earnings or redundancy payments
- have any accessible savings
If you believe the decision to refuse you was incorrect, the UK Government states that you can request a reconsideration. However, it notes that you do not have the right to appeal.