DWP payment worth up to £812 sent to Universal Credit bank accounts
The Department for Work and Pensions (DWP) can give Universal Credit claimants up to £812 in the form of a loan if they need help with emergency costs.
The cash help is known as a Budgeting Advance, or a Budgeting Loan. You may be eligible if you need help with repairs to your home, or if you need extra money to help you work, if you need to move, or funeral costs.
But as this is a loan, it needs to be paid back through your future Universal Credit payments. You normally need to repay the money borrowed within two years. You're not charged interest on a Budgeting Advance or Budgeting Loan.
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.
If you have more than £1,000 in savings, or £2,000 if you or your partner are 63 or over, then you amount you may be able to borrow will be reduced by however much you have in savings over these thresholds.
For example, if you have £1,100 in savings, your Budgeting Advance or Budgeting Loan will be reduced by £100.
You can apply for a Budgeting Advance if you have been getting Universal Credit for six months or more. You can be claiming for less than six months if you need the money to help you get or keep a job.
You must have earned less than £2,600 in the past six months, or £3,600 if you're in a couple. For a Budgeting Loan, you must have been claiming Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance, or Pension Credit for six months or more.
You cannot get a second Budgeting Advance or Budgeting Loan 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 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.
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