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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Hello, Can I apply for a loan on the universal credit site?
Hi Chenice,
Thanks for your inquiry.
Yes. 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.
Kind regards,
Bella
Hi, I’m on universal credit. Is there any way I can get some money for today for bills as I’m not paid till 15.
Hi Billy,
Thanks for getting in touch with finder. I hope all is well with you. :)
Yes, there’s a way for you to get the money on the same day you applied. Usually, a decision on your application is made within 3 days. However, you can inform the provider that you need the loan earlier. By doing so, you won’t have to wait longer than the next working day to receive your loan.
If in case you are not eligible for universal credit budget advance, you may also check loans with fast turnaround.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
How can I apply online? I have been looking for the right link for days.
Hi Becky,
Thank you for your comment.
If you’re referring to applying for a universal credit budgeting advance, you may contact your local Jobcentre Plus, either by phone, online or in-branch.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
Has universal credits stopped giving out budgeting advances just before Christmas now?
Hi Rose,
Thanks for reaching out to finder.
There is no official publication or statement on GOV.UK website that could confirm universal credit advances has been stopped. You may want to contact Universal Credit helpline to confirm this information and to get further advise on this matter.
I hope this helps.
Cheers,
Charisse
I have got into arrears with the rent is there any help available please
Hi Marilyn,
Thank you for leaving a question.
I understand that you are currently struggling financially and is currently in arrears with your rent. A short term solution to this is taking out a Short term loan which could assist you in the mean time. Please click on this LINK to know more on Short term loans. You may also seek advise by clicking on this LINK which will route you to the website for Money advise. Hope this helps!
Cheers,
Reggie