Advance Universal Credit payments can help people make ends meet before their actual benefit payment comes through
If you’re still waiting for your first Universal Credit payment or are due an increase, you might be eligible for an advance to help make ends meet in the meantime. Typically, the four-week assessment period for Universal Credit means that people have to wait around five weeks in total to receive their initial benefit payment.
Any subsequent increases, such as those resulting from a change in circumstances increasing your entitlement, will also take about five weeks to reach your account. This is because the exact amount paid out each time is determined by the four-week-long assessment period preceding it. Payments are usually made seven days after the end of this assessment period.
However, if you’re struggling to manage during these five-week gaps, advance payments are available. These will need to be repaid and the amount you can receive will depend on your personal circumstances, but it could be up to 100% of your estimated Universal Credit payment.
To qualify for an advance payment, you must either have been approved for Universal Credit but not yet received your first payment, or be facing immediate financial hardship, such as being unable to afford food or rent until your benefit payment arrives. You could also be eligible for an advance if you’ve had a change in circumstances that will increase the amount you receive from Universal Credit, but you haven’t been paid this increased amount yet.
If you’re currently on Universal Credit, you might still qualify for an advance in emergency situations, such as unexpected costs like purchasing a new cooker or covering funeral expenses. This is referred to as a budgeting advance and it also needs to be repaid. The minimum amount you can borrow is £100, but in certain situations, you could receive up to £812.
There are several reasons why you might be denied an advance, including if you haven’t had an identity check at a Jobcentre, if you’re deemed to have sufficient funds until your next payment, or if you live with family. While you can’t appeal an advance decision, you can request a reconsideration.
To apply for the standard advance payment, you’ll need to contact your work coach, ring the Universal Credit helpline, or apply via your online account. Online applications are only possible if you’re still in your initial Universal Credit assessment period.
If you’re part of a couple and thus have a joint claim, you’ll need to ensure that your partner also agrees to apply for the advance. The advance will be repaid over time through deductions from your future benefit payments.
If you apply for the advance after April 2021, you’ll have 12 months to repay the advance if it was during your first assessment period. If you received an advance due to a change in circumstances, you’ll have six months to repay the full amount.
If you’re unable to meet the repayments, they can be deferred for three months on new claims and one month on change of circumstances claims, but these deferrals are only granted in exceptional circumstances. More information is available on the Gov.uk website.