Home Finance Universal Credit claimants could receive over £800 to help with unexpected costs

Universal Credit claimants could receive over £800 to help with unexpected costs


Universal Credit is made available to individuals who are out of work, on a low income, or unable to work. The payment, overseen by the Department for Work and Pensions (DWP), is issued every month to eligible Britons to help with day-to-day costs. To be eligible, one must usually be 18 or over, but under state pension age and resident in the UK.

Singletons will be able to get up to £348, while those in a couple are allocated up to £464.

However, for Universal Credit claimants who have children, the sum for a Budgeting Advance jumps up to £812.

The Budgeting Advance could prove a vital lifeline for individuals facing unexpected financial challenges.

While this is the case, it is important to note the advance is considered to be a loan.

Firstly, the DWP must determine the ability of the Universal Credit claimant to be able to pay the loan back.

Next, the DWP assesses how much a person has in savings over £1,000.

It reduces the loan amount it offers by £1 for every £1 held in savings over the £1,000 threshold.

A Budgeting Advance must be repaid within 12 months, and deductions are made from the day a person receives their next Universal Credit payments.

If a person moves off Universal Credit, they will still be required to repay the advance by other means, such as from wages or other benefits. 

For Universal Credit claimants to be eligible, they must have earned less than £2,600, or £3,600 for couples, in the past six months.

Any previous Budgeting Advances must also have been paid off in order to receive a new one.

Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to [email protected]. Unfortunately we cannot respond to every email.


Please enter your comment!
Please enter your name here