If you are due to receive your payment of Universal Credit or you’re already being paid it and you have had a change in circumstances, then you may be able to get an advance to help you. Initially when you make a new claim for Universal Credit (UC), you should get your first payment 7 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 GOV.UK. However if you are struggling to make ends meet, for example, you cannot afford bills or food, you may be able to apply for an advance payment while you wait for your first payment.
You’ll need to repay your advance in installments from your future Universal Credit payments. If you stop receiving Universal Credit, repayments will be taken from your wages or other benefits you may be receiving.
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:
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 may be able to get up to 100% of your estimated Universal Credit payment and you’ll typically receive a quick decision on your advance application. This often happens on the same day.
How much will it cost me to repay?
If you apply for an advance online, you’ll see on screen the repayment amounts based on different repayment periods however if you apply by phone, a Universal Credit helpline adviser will assess whether you can afford to repay the advance.
If the advance is approved, they will explain the details to you over the phone such as how much you can have, the monthly repayment amounts as well as when the first repayment is due.
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:
- have not had your identity checked at the Jobcentre
- have enough money to last until your payment of Universal Credit
- live with parents, relatives or friends
- have any final earnings or redundancy payments
- have any accessible savings
If you feel like it was the wrong decision to refuse you, the UK Government says that you can ask for the decision to be reconsidered, however warns that you do not have a right to appeal.
