Universal Credit claimants could get £812 advance on top of £650 Cost of Living payment

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Universal Credit claimants could get £812 advance on top of £650 Cost of Living payment

As the cost of living crisis continues and energy bills soar, Britons on low incomes may need all the support they can get. The cash boost is avail

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As the cost of living crisis continues and energy bills soar, Britons on low incomes may need all the support they can get. The cash boost is available via the the Budgeting Advance scheme and can be received on top of the cost of living support package worth £650.

It is designed to help people out if they are suddenly faced with having to pay for something unexpectedly, such as a funeral or a key household appliance breaking down.

It needs to be repaid, and means one’s payments will be lower until they can pay this back.

If someone no longer gets Universal Credit payments, they will need to repay by other means, such as from wages or other benefit they may be getting.

Universal Credit claimants may be able to get a Budgeting Advance of up to £812 to help with things like emergency household needs.

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This includes things such as replacing a broken cooker or the costs associated with getting a job or staying in work such as clothing or equipment they’re expected to have.

It comes on top of claimants’ usual Universal Credit payments, which is intended to cover costs like rent or childcare.

The smallest amount one can borrow is £100.

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

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

  • The claimant has been getting Universal Credit, employment and support allowance, income support, jobseeker’s allowance or state pension credit for six months or more, unless they need the money to help them start a new job or stay in work
  • They’ve earned less than £2,600 (£3,600 together for couple) over the past six months
  • They’ve paid off any previous budgeting advance loans

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

People can work out how much they will pay back a month by dividing the amount they borrowed by 12.

This means a loan of £812 would be paid back with around £68 a month taken off one’s Universal Credit monthly payment.

To be eligible for Universal Credit initially, a person must be on a low income or out of work entirely.

On top of this, claimants must be aged between 18 and state pension age, have less than £16,000 in savings and be living in the UK.

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

Around eight million people receive Universal Credit, legacy benefits and Pension Credit and they will qualify for £650.

All households will receive an energy bills rebate of £400 over coming months.

Britons on disability benefits like Attendance Allowance will get an additional one-off sum of £150 in September, while pensioner households will receive an extra £300 this year.

They will only get the £650 on top if they are also claiming means-tested benefits.



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