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 short-term loan, but these have higher interest rates attached to them and could cause more problems than they solve. Only apply if you can afford to make the repayments on time and don’t have better options.
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.
44% of Brits have gambled at least once in 2023. We unpacked the latest statistics to see what we are gambling on and how much we spend.
Bamboo offers fixed-rate unsecured personal loans up to £8,000 without a guarantor.
Check out our review of Lendable personal loans and find out whether it offers the best loans for you.
If you’re a retiree and looking for a loan, there are lenders who may approve your application. Learn more about the loan types available to retired people.
Compare live rates, fees and eligibility criteria from a range of lenders to get the right loan for your needs at the lowest overall cost.
Creation Financial Services offers fixed-rate personal loans of £1,000-£25,000 over 1-5 years with no hidden fees. Find out all the key features of these loans and compare live rates in our in-depth review.
Want to buy a new car? Go on holiday? Consolidate your debt? Compare rates and costs of 2 year fixed rate personal loans from a range of lenders.
Fast, simple comparison of TSB fixed-rate personal loans with services from a range of UK lenders. Secure a competitive rate and apply online.
Whether you’re planning on some home improvements, replacing your car or simply getting your finances in order, Sainsbury’s offers fixed rate personal loans of up to £25,000 to Nectar card holders. Fast, easy comparison with a range of lenders.
Compare HSBC fixed-rate personal loans against products from a range of UK lenders. Apply online and secure a competitive rate.
Hi! I get universal credit. I sent messages as I have Crohn’s and my purse was stolen in the post office and handed in without my money. Those were bills and food money. I don’t get paid till 29th. I’m getting worried and upset. I have no credit on my phone I have a lot of pain today. Thank you.
Hi Sharon,
Thanks for getting in touch with Finder. I’m sorry to hear about your problems Sharon. I could imagine how hard this can be for you.
What I can suggest is for you to directly get in touch with your provider. This way, they can assess your situation and provide the available options for you.
Alternatively, you might want to go to this page and check if there are government benefits that you might be eligible for.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi, I am in need of a budgeting advance as am moving house but I am currently paying my advance payment off, will I still be accepted?
Hello Jade,
Thank you for your comment.
According to one of the official websites of the UK government, in order to get a Budgeting Advance, you must have:
– been getting Universal Credit, Employment and Support Allowance, Income Support, Jobseeker’s Allowance or State Pension Credit for six months or more, unless you need the money to help you start a new job or keep an existing job
– earned less than £2,600 (£3,600 jointly for couples) in the past six months
– paid off any previous Budgeting Advances
Hence, you should pay off your current advances before getting a budgeting advance. You may verify this also by contacting the Universal Credit Service Centre directly.
Regards,
Jhezelyn
How do I apply for a Unversal credit loan.
Hi Kaci-may,
Thank you for reaching out to finder.
You can ask for a Universal Credit advance:
as soon as you make your claim for Universal Credit
before you get your first payment
if you are already being paid Universal Credit and have told us of a change in your circumstances that means you will be paid more Universal Credit but have not yet been paid the increased amount
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
Hope this helps!
Cheers,
Reggie
Can I get a loan even if I don’t receive Universal Credit?
Hi Anita,
Thank you for reaching out to finder.
Yes, you may apply for an advance from Universal Credit even if you’re not a claimant if you have received any of the following below in the last 6 months:
*Universal Credit
*Jobseeker’s Allowance (income-based)
*Employment and Support Allowance (income-related)
*Income Support
*Pension Credit
I hope this helps.
Please do not hesitate to reach out again to us if you have additional questions.
Cheers,
Ash
Hi. I applied today for a universal credit budgeting advance it was accepted will I get this today into my account or will I wait as she said it could be Monday 😥
Hi Ashley,
Thank you for reaching out to finder.
Once you have applied for an advance from your Universal Credit, you may receive the decision within the day then expect the funds to be deposited either the next business day or up to 3 working days. If they have provided a time frame on when you will receive the money, you may expect it by then.
I hope this helps.
Please do not hesitate to reach out to us again if you have additional questions.
Cheers,
Ash