People on Universal Credit struggling to make ends meet during the cost of living crisis could get a one-off payment of up to £812 to help pay their bills. The money, available under the budget advance program, must however be repaid.
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. As the money is a loan, it is important to know that it could affect your finances in the future.
This means that your payments will be lower until you pay them back. If you no longer get Universal Credit, you will have to repay through other means, such as salaries or other benefits you may receive, reports LiverpoolEcho.
What is the budget advance?
Universal Credit applicants may be able to get a budget advance of up to £812 to meet needs such as emergency household needs (such as replacing a broken cooker) or costs associated with getting a job or staying at work (such as clothing or equipment). you are supposed to have). It comes on top of applicants’ usual Universal Credit payments, which cover costs such as rent or childcare.
It’s basically a loan that you have to repay through your usual universal credit installments. The smallest amount you can borrow is £100. You can get up to £348 if you’re single, £464 if you’re in a relationship or £812 if you have children.
To qualify, you must also have earned less than £2,600 (£3,600 together for couples) in the last six months and have repaid any previous budgeting loans you have received. What will be awarded will depend on whether the applicant has savings of over £1,000 and can repay the loan.
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 the money to help him start a new job or stay at work
- They have earned less than £2,600 (£3,600 together for a couple) in the last 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. To be eligible for Universal Credit, a person must initially have a low income or be entirely 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.
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How to apply?
To apply for a budget advance you can update your log in your Universal Credit account, contact your nearest Jobcentre Plus or call the Universal Credit Helpline on 0800 328 5644 between 8am and 6pm Monday to Friday.
How is it reimbursed?
The money must be repaid within 12 months of receiving it, reports The Sun. You can calculate how much you will repay per month by dividing the amount you borrowed by 12.
This means that a loan of £812 would be paid off with around £68 per month taken from your Universal Credit monthly payment. If you end up receiving no more UC, you will have to pay it back some other way.
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