DWP will give Universal Credit seekers an emergency payment of £812 – how to get it

Universal Credit claimants who have been thrown into even greater financial hardship during the current cost of living crisis may be eligible for an emergency payment of up to £812.

The monetary boost, known as the Budgeting Advance, aims to help with emergency household bills such as replacing a broken cooker or helping to cover funeral costs. However, since it is a loan, you will have to pay it back through future Universal Credit payments.

People who receive the payment will not pay any interest and those who no longer receive Universal Credit will pay it back through their salary or other benefits they may receive, mirror reports.

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You can apply for the advance online and usually be informed of the result the same day. If you are rejected, you can request that the decision be reconsidered, but you do not have the right to appeal.

You may be refused an advance if you have not had your identity verified at Jobcentr, have enough money to last until your Universal Credit payment, live with parents, relatives or friends, have an income of end of career or severance pay or accessible savings.

We’ve summarized everything you need to know about the budget advance below – how much you can borrow, who is eligible and how to pay it back.

How much can I borrow through a budget advance?

The smallest amount you can borrow is £100 and the maximum is £812 if you have children.

You can go up to:

How much you can get depends on whether you can repay the loan and whether you have savings of over £1,000. The amount you can borrow is reduced by £1 for every £1 you have in savings over the £1,000 threshold.

Who is eligible for a Budget Advance?

To obtain a budget advance, you must have:

  • have received Universal Credit, Income-Related Employment and Support Allowance, Income Support, Income-Related Jobseeker’s Allowance or State Pension Credit state for 6 months or more, unless you need money to help you start a new job or keep an existing one
  • earned less than £2,600 (£3,600 jointly for couples) in the past six months
  • paid all previous budget advances

How to repay a Budget Advance?

You will repay the advance through your Universal Credit payments over a 12 month period. The first deduction is made on the day you receive your next payment.

If you stop claiming Universal Credit, you will repay your budget advance either from your salary, if you are currently working, or from other benefits you may receive. If you do not make payment arrangements, DWP will contact your employer to collect what you owe or arrange for an independent debt collection agency to collect the money.

How can I request a budget advance?

To request a budget advance, contact your local Jobcentre Plus work coach.

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