Universal Credit claimants can get one-off payment worth up to £812
The smallest amount you can borrow is £100, but you may be able to get up to £348 if you're single, £464 if you're in a couple, or £812 if you have children
Universal Credit claimants can get help with emergency household costs through a budgeting advance loan from the Department for Work and Pensions (DWP).
For example, for you may be eligible if you need to replace your fridge or boiler, or for repairs to your home. You may also be awarded help if you need extra money related to your job, if you need to move, or for funeral costs.
But as this is a loan, it needs to be paid back through your future Universal Credit payments, normally over a period of two years. You're not charged interest on a budgeting advance.
The smallest amount you can borrow is £100, but you may be able to get up to £348 if you're single, £464 if you're in a couple, or £812 if you have children. The DWP will decide how much you will get.
You must have been getting Universal Credit, Income-related Employment and Support Allowance, Income Support, Income- related Jobseeker's Allowance or Pension Credit for six months or more, to get budgeting advance.
You can be claiming benefits for less than six months if you need the money to help you with work. You'll also need to have earned less than £2,600 in the six months before your application, or £3,600 if you live with a partner.
If you have more than £1,000 in savings, your budgeting advance will be reduced by however much you have in savings over this amount. For example, if you have £1,100 in savings, your loan will be reduced by £100.
You cannot get a second budgeting advance if you have not paid off your first loan. Citizens Advice has listed the following scenarios which could qualify you for a budgeting advance:
Replace broken appliances
Buy work uniform or tools
Unexpected expenses
Repairs to your home
Travel expenses
Maternity expenses
Funeral expenses
Moving costs or rent deposit
Essential items
To apply for a budgeting advance, you can put a message in your Universal Credit online journal, contact your nearest jobcentre or call the Universal Credit helpline on 0800 328 5644.
You will still need to repay your budgeting advance even if you stop claiming Universal Credit. The DWP can contact your employer or a debt collection agency to recover what you owe if you stop paying.
Universal Credit payments rose by 1.7% from this month. Universal Credit is made up of a standard allowance, which is the basic amount you get before any additional elements - for example, if you have children or are unable to work due to illness - or any deductions are taken into account.
Universal Credit full rates explained
Standard allowance
Single under 25: £316.98 a month
Single 25 or over: £400.14 a month
Joint claimants both under 25: £497.55 a month
Joint claimants, one or both 25 or over: £628.10 a month
Child element
First child born before April 6, 2017: £339 a month
First child born on or after April 6, 2017 or second child and subsequent child: £292.81 a month
Disabled child element lower rate: £158.76 a month
Disabled child higher rate: £495.87 a month
Limited capability for work
Limited capability for work: £158.76 a month
Limited capability for work or work-related activity: £423.27 a month
Carer element
£201.68 a month
Work allowance
Higher work allowance (no housing amount): £684 a month
Lower work allowance (with housing amount): £411 a month
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
3 hours ago
- Glasgow Times
More than 36,000 Scottish families benefit from HMRC scheme
According to new figures from HM Revenue and Customs (HMRC), 36,095 families in Scotland are using the UK Government's Tax-Free Childcare scheme to cut annual childcare costs. Nearly 826,000 working families across the UK saved up to £2,000 per child in the 2024 to 2025 tax year. Read more: Nationwide, NatWest, Lloyds, Halifax, and Santander issued HMRC warning Tax-Free Childcare is part of the UK Government's broader Plan for Change and aims to support families by helping them manage childcare costs. Under the scheme, the government contributes £2 for every £8 deposited into a Tax-Free Childcare account, up to £500 every three months per child - or £1,000 for a disabled child. This equates to a maximum of £2,000 per year for children aged 11 and under, and up to £4,000 per year for children with disabilities until the September after their 16th birthday. The funds can be used for a wide range of approved childcare, including nursery fees, after-school clubs, and holiday care during school breaks. Myrtle Lloyd, director general for customer services at HMRC, said: "Summer can be an expensive time if you have children. "Whatever you're planning, Tax-Free Childcare can give your plans a welcome financial boost." Parents looking to apply for the scheme can complete eligibility checks and registration at Read more: HMRC is urging anyone with kids aged 15 - 46 to check Once an account is set up, parents can deposit money as needed and use it straight away or save it for future costs. Any unused funds can be withdrawn at any time. To qualify, parents must earn at least the National Minimum Wage or Living Wage for a minimum of 16 hours per week, and neither parent can earn more than £100,000 per year. The scheme is not available to families receiving Universal Credit or childcare vouchers.
The Guardian
19 hours ago
- The Guardian
Pensions report cuts Reeves' planned growth funds from £160bn to £11bn
Plans to invest £160bn of surplus funds from final salary pension schemes to boost the UK economy over the next 10 years have been dealt a blow by a Whitehall assessment that found there was likely to be little more than £11bn available to spend. In a knock to Rachel Reeves's growth agenda, a report by civil servants at the Department for Work and Pensions (DWP) found that the expected surpluses in occupational schemes would be used by businesses to offload their pension liabilities to insurance companies. It could mean that as little as £8.4bn would be available for companies to invest in new equipment or technology, but the figure was likely to be nearer £11bn, the DWP said on Friday. 'It is estimated that an additional £11.2bn surplus will be extracted as a result of the preferred option to legislate over a 10-year period,' the report said. Pension surpluses were a significant pillar of the chancellor's plans to use private sector funds to grow the economy during a period when state funds are likely to be severely restricted. Reeves is expected to lay out her growth plans on Wednesday in the spending review, which will set out the government priorities for the next year. Earlier this year she said about 75% of final salary schemes, also known as defined benefit schemes, were in surplus, worth £160bn, but restrictions have meant businesses have struggled to invest them. In her Mansion House speech in November, Reeves also outlined proposals for pension megafunds to be created from individual defined contribution schemes and a merger of local authority pension schemes to make the pensions industry more cost-effective. A pensions bill going through parliament will allow pension fund trustees to unlock trapped surplus funds that Reeves said would increase investment in British businesses and lift economic growth. Hundreds of final salary schemes, which spent decades in deficit, meaning the value of their obligations to members outweighed their assets, have moved into surplus in recent years after an increase in interest rates. 'Although fewer than 700,000 people are actively saving into a private sector defined benefit scheme, the sector remains a significant market within the UK economic landscape,' the report said. 'Across around 5,000 schemes, around nine million members are being supported with assets of around £1.2tn.' An impact assessment by DWP officials said legislation was needed to overhaul the pension system and give trustees the power to access surplus funds. It said a failure to act would also mean 'an opportunity to benefit members, businesses and to drive economic growth would be missed. Therefore 'do nothing' is not considered a desirable option.' However, a combination of factors means the expected surplus for investment is reduced to no more than £12bn over 10 years, in part because the legislation does not force trustees of defined benefit funds to use surpluses for investment, and that most occupational final salary schemes have reached a level where a buyout is possible. In a note for the Pension Insurance Corporation, an independent expert, John Ralfe, said: 'Forget about £160bn of pension surpluses just waiting, as Rachel Reeves said, to be paid out to 'drive growth and boost working people's pension pots'. 'The DWP figures estimate just a fraction of this – under £12bn – will be paid out over the next 10 years, mainly because most companies want a full buyout with an insurance company. 'And the bill contains no details of how pensions will be protected if cash is withdrawn. Member security must be a priority with strict rules on repaying amounts if funding deteriorates,' he added. Many pension fund trustees are known to be concerned that allowing company boards access to surplus funds could leave their schemes vulnerable after a panic in financial markets. Without strong safeguards, giving businesses access to surplus pension funds could also make them more attractive targets for foreign takeovers. It is understood the new regime will allow trustees to block moves to access surplus funds if they believe it will undermine the safety of the fund. The pensions minister Torsten Bell said: 'I have read the impact assessment, and I am satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impact of the leading options.' The Treasury and the DWP were contacted for comment.
Daily Mirror
20 hours ago
- Daily Mirror
State Pension's future under review amid retirement shake-up
The State Pension is facing a dramatic overhaul under a Government shake-up of retirement rules. The changes could see millions of future retirees having to wait longer to claim and receiving different levels of payment. Ministers have launched a wide-ranging review of the entire pension framework – looking at when people should be entitled to receive the state pension, how much they should get, and whether the current system is financially sustainable for the long term. The Department for Work and Pensions (DWP) confirmed that the second phase of its Pensions Review will examine 'the balance of all three pillars of the UK system – state, occupational and personal wealth'. It is expected to ask fundamental questions about how these components should work together to ensure a financially secure retirement for everyone. Full details and the panel leading the review are yet to be published. The review comes at a time of growing concern that the triple-lock guarantee – which ensures the state pension rises every year in line with wages, inflation or 2.5%, whichever is highest – is pushing up pension payments at an unsustainable rate. Rachel Vahey, head of public policy at AJ Bell, said: 'Pensions minister Torsten Bell recently ruled out scrapping the triple-lock guarantee, but as the state pension grows ever closer to the frozen personal allowance threshold it could be that the Government is finally forced to address the question of how much the state pension should really offer, at what age, and how it can increase payments sustainably each year.' The announcement comes hot on the heels of a new Pension Schemes Bill, which lays the groundwork for major changes, including the creation of massive collective investment funds – dubbed 'megafunds' – to deliver better returns for savers. Ms Vahey said the review could be the most significant shake-up since the Turner Review 20 years ago, which brought in automatic workplace pension enrolment and transformed saving habits in the UK. 'It's now 20 years since the Turner Review was published,' she said. 'That comprehensive look at the UK's retirement system ushered in a new regime for pensions, resulting in the introduction of landmark automatic enrolment reforms which changed pension saving in the UK forever.' Those reforms have seen more than 11 million people newly enrolled in workplace pensions since 2012, bringing the total number of active savers to around 20 million. But experts warn that while the number of savers has surged, many still aren't putting enough aside for a comfortable retirement. Ms Vahey said: 'Not enough people are saving enough money for their later life, and although automatic enrolment has gone a long way to create millions of new pension savers, instead of resting on our laurels we now need to take a good look at whether they are saving a sufficient amount of money to realise their retirement ambitions.' The review is also expected to probe the interaction between the state pension and private savings – including personal assets – raising questions about whether those with higher wealth might ultimately be expected to rely less on the state. Ms Vahey added: 'While details of this new Pension Review are thin on the ground at this stage, it has the potential to be as significant and could have far-reaching implications for people saving for their retirement.' Campaigners are urging the Government to set out full terms of the review as soon as possible to give millions of savers clarity on what's coming. Ms Vahey said: 'The Government now needs to clearly set out the terms of this review as soon as possible to give savers and the industry certainty over its plans.'
