People applying for Universal Credit benefits from the Department for Work and Pensions (DWP) may be able to get an advance loan to help them through current financial difficulties. New and existing Universal Credit recipients could be eligible for early relief amid the current cost of living crisis.
It can take up to five weeks for a first payment to be made once a benefit has been applied for, and given the financial difficulties we live in, some people may need help to bridge the gap. . For those who need immediate financial support, it is now possible to apply online for an advance payment.
It is important to know that this advance must be repaid as a deduction from their regular universal credit payment. However, applicants now have 24 months to repay the loan, instead of the previous 12, reports the Daily Record.
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To apply for a Universal Credit advance, you can:
talk to your Jobcentre Plus work coach
apply via your online account
call the Universal Credit helpline on 0800 328 5644
If a Universal Credit applicant does not report a change in circumstances, they could have their payment stopped or reduced – this is called a penalty. And if a person receives a sanction, they may be able to apply for hardship compensation if they cannot afford rent, heating, food or hygiene needs.
The GOV.UK website states: “If you don’t have enough to live on while you wait for your first payment, you can apply for an early payment after you have made a claim. You can also apply for a hardship payment if you cannot not pay rent, heat, food or hygiene needs because you received a sanction.
“You have to pay it back through your Universal Credit payments – they will be lower until you pay it back.”
People in financial difficulty who are struggling to pay their rent may also be able to apply for an alternative payment method (APA). This measure could see the rent being paid directly to a landlord, the benefit being paid more than once a month, or the payment being split between the person and their spouse.
There is also a budget advance that can help cover some costs. These include:
The GOV.UK website explains that people who get a budget advance will repay it through their regular Universal Credit payments. This means that their Universal Credit payments will be lower until they have paid it back, and if they stop getting Universal Credit, they will have to repay the money another way.
How much can I borrow?
The smallest amount you can borrow is £100. You can go up to:
What an eligible person gets depends on whether they have savings of over £1,000 and can repay the loan.
Eligibility
To obtain a budget advance, all of the following conditions must apply:
You have been on Universal Credit, Employment and Support Allowance (ESA), Income Support, Jobseeker’s Allowance or State Pension Credit since six months or more, unless you need money to help you start a new job or stay at work
You have earned less than £2,600 (£3,600 combined for couples) in the past six months
You have repaid previous Budgeting Advance loans
To find out more about advance payments or hardship and budget loans, visit the GOV.UK website here.
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Source: www.somersetlive.co.uk
This notice was published: 2022-04-21 08:54:28
