Universal Credit applicants could get an £812 advance on top of a £650 raise | Personal finance | Finance


As the cost of living crisis continues and energy bills soar, low-income Britons may need all the support they can get. The cash boost is available through the Budget Advance Scheme and can be received in addition to the Cost of Living Support Scheme worth £650.

It’s designed to help people if they suddenly find themselves having to pay for something unexpectedly, like a funeral or a key appliance breaking down.

He needs to be repaid, which means his payments will be lower until he can repay it.

If someone is no longer receiving Universal Credit payments, they will have to repay through other means, such as salaries or other benefits they may receive.

Universal Credit applicants may be able to get a budget advance of up to £812 to meet needs such as emergency household needs.

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This includes things like replacing a broken cooker or costs associated with getting or staying employed, such as clothing or equipment they are supposed to have.

It comes on top of applicants’ usual Universal Credit payments, which are intended to cover costs such as rent or childcare.

The smallest amount one can borrow is £100.

People can get up to £348 if they are single and £464 if they are part of a couple.


To be eligible for a budget advance, all of the following must apply.

  • Applicant has been on Universal Credit, Employment and Support Allowance, Income Support, Jobseeker’s Allowance or State Pension Credit for six months or more, unless he needs money to start a new job or stay at work
  • They have earned less than £2,600 (£3,600 together for a couple) in the past six months
  • They repaid all previous budget advance loans

To apply for a budget advance, applicants will need to contact their local Jobcentre Plus work coach for assistance.

People can calculate how much they will repay per month by dividing the amount they borrowed by 12.

This means that an £812 loan would be repaid with around £68 per month taken from the Universal Credit monthly payment.

To initially qualify for Universal Credit, a person must be low income or completely unemployed.

In addition to this, applicants must be aged between 18 and the statutory retirement age, have less than £16,000 in savings and live in the UK.

Universal Credit claimants can also get one-off £650 cash assistance during the current cost of living crisis. This is to be paid in two instalments, to help them pay their energy bills.

Around eight million people receive Universal Credit, Inherited Benefits and Pension Credit and they will be entitled to £650.

All households will receive a £400 energy bill rebate over the next few months.

Britons on disability benefits like Attendance Allowance will get a one-time extra £150 in September, while pensioner households will get an extra £300 this year.

They will only receive the extra £650 if they also apply for means-tested benefits.


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