Budgeting advances can be awarded for:
Emergency household costs such as replacing a broken cooker
Getting a job or staying in work
Funeral costs
These advances will be repaid to the Government through regular Universal Credit payments which will be lower until the debt is repaid.
Universal Credit claimants with children may be eligible for additional payments q (Image: GETTY)
It should be noted budgeting advances will need to be repaid even if a claimant stops getting Universal Credit.
The smallest amount that can be borrowed is £100 but it is possible to get up to:
£348 if a claimant is single
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Universal Credit claimants received a £20 per week uplift in early 2020 which was intended to be a temporary measure. However, Rishi Sunak extended this support recently but no additional measures were announced for legacy benefits, which will eventually be replaced entirely by Universal Credit.
It is not possible to receive Universal Credit and tax credits at the same time.
If a tax credit claimant starts living with a partner who is receiving Universal Credit their tax credit payments will also stop.
In this circumstance, both the claimant and their partner will be treated as joint claimants of Universal Credit instead.
Tax credit claimants will be getting a £500 payment (Image: GETTY)
Some tax credit claimants may have debt and if they do, their debt will be transferred to DWP when they switch to Universal Credit.
Universal Credit payments may then be reduced to cover this debt, depending on the claimant s circumstances.
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Universal Credit claimants must agree to what is known as a claimant commitment, which sets out what applicants are expected to do in return for benefits and support. This can include hitting certain job application quotas or attending mandatory meetings but as coronavirus emerged, the Government was forced to alter their processes.
To be eligible for a budgeting advance, all of the following must apply:
The claimant has been getting Universal Credit, employment and support allowance, income support, jobseeker’s allowance or state pension credit for six months or more, unless they need the money to help them start a new job or stay in work
They ve earned less than £2,600 (£3,600 together for couple) over the past six months
They ve paid off any previous budgeting advance loans
Universal Credit is tailored to claimant s circumstances (Image: EXPRESS)
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To apply for a budgeting advance, claimants will need to contact their local Jobcentre Plus work coach for assistance.