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Wales Online
14 hours ago
- Business
- Wales Online
DWP giving one-off payments of over £800 to households on certain benefits
DWP giving one-off payments of over £800 to households on certain benefits The Department for Work and Pensions (DWP) gives out one-off payments of up to 812 to benefits claimants to help with unexpected costs (Image: TkKurikawa via Getty Images) The Department for Work and Pensions (DWP) offers one-off payments of up to £812 to those claiming benefits, intended to assist with unexpected costs such as household items or travel expenses. However, it's important to note that any money borrowed must be repaid to the DWP. People receiving certain benefits can apply for one of these budgeting loan payments if they've been on these benefits for six months. Repayment is straightforward - you only have to pay back the amount you borrow, and repayments are automatically deducted from your benefits. This follows the Government's introduction of the Fair Repayment Rate in April, which prevents the DWP from deducting up to 25% from someone's Universal Credit standard allowance payment to repay debt, reports the Manchester Evening News. Read the biggest stories in Wales first by signing up to our daily newsletter here Eligibility for a Budgeting Loan Article continues below To qualify for a Budgeting Loan, you must have been receiving one or more of these benefits for the past six months: Income Support income-based Jobseeker's Allowance income-related Employment and Support Allowance Pension Credit If you moved from Universal Credit to Pension Credit, any time spent claiming Universal Credit will count towards the six months. However, you are not eligible if: you get New Style Jobseeker's Allowance or New Style Employment and Support Allowance you're involved in industrial action (for example a strike, walkout or lockout) you owe more than £1,500 in total for Crisis Loans and Budgeting Loans you currently get Universal Credit - the Government advises you to apply for a Budgeting Advance instead you currently receive Universal Credit - in this case, the Government advises you to apply for a Budgeting Advance instead. Potential Loan Amounts The minimum amount you can borrow is £100. You could receive up to: £348 if you're single £464 if you have a partner £812 if you or your partner claim Child Benefit What a Budgeting Loan Can Help With According to the Government website, a Budgeting Loan can help pay for: furniture or household items (for example, washing machines or other 'white goods') clothes or footwear rent in advance costs linked to moving house maintenance, improvements or security for your home travelling costs within the UK costs linked to getting a new job maternity costs funeral costs repaying hire purchase loans The Government has advised that those receiving Universal Credit, New Style Jobseeker's Allowance or New Style Employment and Support Allowance should not apply for a budgeting loan. Instead, they should apply for a Budgeting Advance to help with bills or other costs. The repayment of these advances is typically automated through regular Universal Credit payments over a six-month period. The amount you can receive depends on your circumstances and what the money is needed for. Examples of what you can get an advance for include: living costs before you get your first payment essential living costs if you've been sanctioned work or job interview costs emergency household costs funeral costs To apply, you can do any of the following: update your journal in your Universal Credit account ask a Universal Credit contact at your local jobcentre or your work coach call the Universal Credit helpline on 0800 328 5644 The Fair Repayment Rate, which was introduced recently, caps the largest amount the DWP can take for debt repayments at 15% of someone's standard allowance payments. This measure aims to help individuals repay their debts sustainably and ensure that the "poorest households" have more money each year, according to the DWP. The Chancellor introduced the Fair Repayment Rate at the Autumn Budget as part of wider efforts to raise living standards, combat poverty, and tackle the cost-of-living crisis. When the announcement was made on 30 April, Chancellor Rachel Reeves said: "As announced at the budget, from today, 1.2 million households will keep more of their Universal Credit and will be on average £420 better off a year. "This is our plan for change delivering, easing the cost of living and putting more money into the pockets of working people." Article continues below Join our WhatsApp community group where you can get the latest stories delivered straight to your phone
Daily Mirror
a day ago
- Business
- Daily Mirror
DWP payment worth up to £812 sent to Universal Credit bank accounts
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 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.
Daily Mirror
3 days ago
- Business
- Daily Mirror
Simple way to get Universal Credit advance before next payment
You may be entitled to extra help if you are part of a certain group If you're about to receive your Universal Credit payment or are already receiving it and your circumstances have changed, you may be eligible for an advance to help cover costs - including emergency situations. When you first apply for Universal Credit, your initial payment is usually made seven days after the end of your first assessment period. After this is sorted, "you will then be paid monthly on the same date, unless your payment date falls on a weekend or Bank Holiday", confirms However, if you're having difficulty covering essential costs - such as food or bills - you may be able to apply for an advance payment while waiting for your first Universal Credit payment. You'll repay the advance in installments which will be deducted from your future Universal Credit payments. If you're no longer receiving Universal Credit, the repayments may be taken from your earnings or other benefits you receive. You can apply for a Universal Credit advance: 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 - find out how to apply apply through your online account - find out how to apply call the Universal Credit helpline - find out how to apply That's not the only advance you can get as if there's an emergency situation, you may be able to get help. The UK Government say that people may be able to get a Budgeting Advance to help with: emergency household costs such as replacing a broken cooker getting a job or staying in work funeral costs They explain: "A Budgeting Advance is a loan, and you'll need to repay it through your regular Universal Credit payments - your payments will be lower until you pay it back. You'll be told how much your payments will be reduced by." You could receive up to 100% of your estimated Universal Credit payment. Thankfully decisions on advance applications are usually made quickly, often on the same day so you don't need to wait. How much will it cost me to repay? If you apply for an advance online, you'll be shown the repayment amounts for various repayment periods. If you apply by phone, a UC helpline adviser will assess your ability to repay the advance. If your advance is approved, the adviser will explain the details to ensure you can meet them. They will discuss the amount you can receive, the monthly repayment amounts and when your first repayment will start. They further explain: "Deductions are made from your monthly Universal Credit payment. The first deduction is made on the day you get your first payment." You must usually pay back the advance within: 24 months if you apply for the advance on or after 12 April 2021 because you've made a new claim for Universal Credit 12 months if you applied for the advance before 12 April 2021 because you made a new claim for Universal Credit 6 months if you apply for the advance because of a change of circumstances You can ask for your repayments to be delayed if you cannot afford them. Repayments can be delayed for either 3 months if the advance is for a new claim or 1 month if the advance is for a change of circumstance however "this is only allowed in exceptional circumstances." Can I be refused an advance? Yes you can be refused and there are a number of reasons why this could be the case. It could be because you: If you believe the decision to refuse you was incorrect, the UK Government states that you can request a reconsideration. However, it notes that you do not have the right to appeal.
