A universal credit budgeting advance is an interest-free loan designed to help universal credit claimants pay for one-off or unforeseen expenses. Learn about how much you can borrow, and compare your other options with our guide.
If you’re on universal credit or other benefits and need to cover a large upcoming expense, you can choose to receive some of your benefit upfront as a loan. The loan is then repaid over the next 12 months through your regular universal credit payments, which means you’ll receive a lower monthly payment until the loan amount has been paid off.
The minimum amount you can claim on a budgeting advance loan is £100. The maximum amount depends on your personal circumstances and how much money you have in savings.
However, if you have more than £1,000 in savings, the amount you can borrow will be the figure above, less whatever savings you have above £1,000. For example, if you’re a single person without any dependent children and you have £1,100 in savings, the maximum you can borrow is reduced to £248 (£348 minus £100).
When you apply for a universal credit budgeting advance, you should receive a decision on the same day. The budgeting advance should then be paid into your bank account within 3 days but can be transferred on the same day in the case of an emergency.
You can apply for a universal credit budgeting advance online, by contacting your local Jobcentre Plus work coach or by calling one of the universal credit helplines below. You’ll need to prove you have a valid need for the loan and can pay it back.
Universal Credit helpline
Call centres are open Monday to Friday from 8am to 6pm.
The loan isn’t only available for universal credit claimants. You may be eligible for the loan if you’ve claimed any of the following benefits in the last 6 months:
You must have earned less than £2,600 in the past 6 months (or £3,600 if you’re part of a couple) to be eligible for a loan.
However, you’ll likely be refused a budgeting advance if it appears that you may be unable to pay it back.
If you’ve claimed a budgeting advance in the past, you must have paid it back before you can claim another one.
If you’re struggling to meet essential expenses like rent or food while waiting for your first UC payment, you can ask for a universal credit advance instead. This is a different interest-free loan, although it’s also paid back via deductions from future UC payments.
A universal credit budgeting advance will only be approved if it’s being used for essential one-off expenses or charges, such as:
You’ll be asked what you’re planning to spend the money on. If you’re trying to claim a budgeting advance for ongoing costs (like food, travel or childcare) or one-off luxury purchases (like a new TV or event tickets), your claim will be denied.
Repayments are automatically deducted from future universal credit payments. These deductions are usually spread across your next 12 universal credit payments, and you can request that your payments not start for 3 months in exceptional circumstances.
If you no longer receive universal credit, you’ll still need to pay off the budgeting advance loan amount.
If you’re struggling to afford rent, you could explore whether you’re eligible for a discretionary housing payment. This is another benefit available to those claiming housing benefits.
Benefit claimants are likely to have limited options when it comes to claiming loans. You may be eligible for a credit-builder credit card or a payday loan, but these have higher interest rates attached to them and could cause more problems than they solve. A payday loan should be your last resort for borrowing money. Only apply if you can afford to make the repayments on time.
If you’re in extreme financial hardship, you may be eligible for financial assistance from your local council.
If you’re really struggling for ideas to cover an unexpected expense, consider seeking debt advice from an independent body, such as the MoneyHelper.
A universal credit budgeting advance is a useful option that could get universal credit claimants out of a sticky financial situation. Although the loan is interest-free, it will reduce your benefits for the next 12 months, so it should only be claimed if you can get by with a reduced benefit payment.
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Can you get a budgeting advance loan if you currently work?
Hello Margaret,
Thank you for your comment.
Please take note of the criteria to be eligible for a Budgeting Advance Loan below:
You must:
– have been getting Universal Credit for at least six months – unless you need the money to help you get a job or keep an existing job
– have earned less than £2,600 if you’re single (£3,600 if you’re in a couple) in the past six months
– not be paying off another Budgeting Advance.
Hence, if you need the money to keep an existing job, you are eligible for the Budgeting Advance Loan together with the other criteria listed above.
Regards,
Jhezelyn
How do i claim online for a budgeting advance
Hi Chloe,
Thanks for getting in touch!
You can apply for a budgeting advance through your local Jobcentre Plus online by going to their website. Please note that a decision on your application is usually made on the same day as your claim, and you typically won’t have to wait longer than the next working day to receive your loan. If you get refused of an advance, you can’t appeal against your rejection, although you’re free to make a fresh application at any time.
Hope this helps!
Best,
Nikki
Need to apply for budgeting advance. Cooker has broken.
Hi Julie,
Thanks for getting in touch with Finder. To apply for a budgeting advance through your local Jobcentre Plus either by phone, online or in-branch. You will most likely hear about your application on the same day as your claim, and you typically won’t have to wait longer than the next working day to receive your loan. If you get refused of an advance, you can’t appeal against your rejection, although you’re free to make a fresh application at any time.
Hope this helps!
Best,
Nikki
Can I get a budgeting advance I’m on universal credit and not enough money too live on plus not working due too health problems?
Hi Sarah,
Thank you for getting in touch with Finder.
Sorry to hear about your current situation. As per this page you’re looking at, you may be eligible for the credit budgeting advance if you’ve claimed universal credit benefits in the last six months. Please verify if you’re eligible for this with your local Jobcentre Plus, either by phone, online or in-branch. Once verified, you may also apply for budgeting advance through the said channels.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
I’d like to know why I am receiving no universal credit. We cannot live on my partner as his wages didn’t cover outgoings. I have worked all my life and I feel wronged.
Hi Hazel,
Thanks for getting in touch! As it says on our page, a universal credit budgeting advance will only be approved if it’s being used for essential one-off expenses or charges, such as:
1. essential household items such as cookers, fridges or beds
2. unexpected bills or a fine
3. rent in advance
4. removal costs if moving home
5. one-off expenses required for your job, such as uniform or equipment
6. home repairs or essential improvements
You’ll be asked what you’re planning to spend the money on. If you’re trying to claim a budgeting advance for ongoing costs (like food, travel, childcare) or one-off luxury purchases (like a new TV or event tickets), your claim will be denied.
Hope this helps!
Best,
Nikki