Universal Credit claimants will now have more time to pay back a budgeting advance loan, according to plans announced in the Budget today. A budgeting advance can be used for certain expenses such as emergency household costs, rent in advance or a deposit for moving home, travel costs for starting a new job, or funeral costs.
However, since this is a loan, it needs to be paid back. Usually, your Universal Credit payments are reduced until you’ve repaid the amount you borrowed.
Currently, you have 12 months to repay a budgeting advance, but it was confirmed today that this will increase to 24 months.
The minimum budgeting advance you can borrow is £100, but you may be able to get up to £348 if you’re single, £464 if you’re part of a couple, or £812 if you have children. You won’t receive these full amounts if you or your partner have savings over £1,000, reports the Mirror.
The loan amount you could be offered will be reduced by £1 for every £1 you have in savings over the £1,000 threshold. To qualify for a budgeting advance, you must have been receiving Universal Credit, Income-related Employment and Support Allowance, Income Support, Income- related Jobseeker’s Allowance or Pension Credit for six months or more.
If you’ve been claiming benefits for less than six months and need money to help you start a new job or keep an existing one, you can still get a budgeting advance. To apply for a budgeting advance, you’ll need to contact your local Jobcentre.
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