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.
Browse our collection of payday loan guides, designed to answer all of your short term loan questions and help you find the right payday loan.
If you need to cash a cheque, it may take up to 3 days to clear it with a bank. Cheque cashing services give you immediate access to your money.
QuidMarket offers an instant decision on loans of up to (or for returning customers) and once approved, you can expect the money in your account on the same day. QuidMarket will consider you for a loan even if you have a bad credit history. Find out how other lenders compare.
If you need to borrow cash quickly and tend to use a prepaid card for regular spending, you may be looking to get a payday loan transferred to your prepaid card.
The Money Platform is a peer-to-peer (P2P) lending platform that matches investors with borrowers and provides loans of up to . But at it’s core, is it just another short term lender?
Anico Finance is an online lender providing personalised, transparent, short-term loans of – to help cover and spread the cost of an unexpected financial shortfall. Read the full review and compare its rates and eligibility criteria with a range of lenders.
Wageme is an online platform providing flexible and transparent short term loans of to for unforeseen financial shortfalls.
Sunny is an online platform providing clear and transparent short term loans of between – for when unforeseen circumstances pop up. Find out how their lending options compare.
A 1 week payday loan can give you the cash you need until your next paycheck. Learn how it works, what to watch out for, and compare lenders.
A payday loan gives you the money you need quickly, even if you have bad credit or low income. But which one is best for your situation?
Can I have a budgeting payment please for house hold items for beds ect
Hi Kelly,
Thank you for reaching out to Finder.
You can apply for a budgeting advance through your local Jobcentre Plus, either by phone, online or in-branch. Hope this helps!
Cheers,
Reggie
Hi,
I’ve currently just paid back my budgeting advance. I have a 3-year-old daughter in my care. What’s the earnings threshold because I know single is 2,600 and a couple is 3,600 but nothing if you have kids? I work part-time and earn over 2,600 in 6 months so now not eligible for one?
Hi Shaun,
Thank you for getting in touch with Finder.
Kindly seek further info on this with your local Jobcentre Plus, either by phone, online or in-branch.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
How do I get a budgeting loan
Hi Lisa,
Thanks for your inquiry.
If you meet the eligibility requirements of getting a universal budget advance, then you can apply for a loan. To be eligible, you need to have earned less than £2,600 in the past six months. You also need to show that you’re able to make repayments. You can know more about the eligibility requirements of universal budgeting advance by reading the topic “Do I qualify for a universal credit budgeting advance?”. You can apply for a budgeting advance through your local Jobcentre Plus, either by phone, online or in-branch.
I hope this helps.
Kind regards,
Bella
Hello I would like to apply for working tax credit or universal credit as I am told I am able to apply for it seen as though I’m working and not on a great income
Hi Daniel,
Thank you for reaching out to Finder.
To apply for a Universal Credit advance you can:
– speak to your Jobcentre Plus work coach
– apply through your online account
– call the Universal Credit helpline
I hope this information helped.
Cheers,
Reggie
I applied for a budgeting advance about a month ago and was only offered £18. I have now paid back a loan and was wondering if I would be able to apply for one?
Hi Ciaran,
Thank you for your comment.
You may be eligible to apply for a new budgeting loan if you already have repaid your previous loan. You should contact your Jobcentre Plus office for advice.
Regards,
Jhezelyn