The Department for Work and Pensions (DWP) offers Universal Credit claimants a potential loan of up to £812 as emergency financial assistance. This aid, known as a Budgeting Advance or Budgeting Loan, can be utilized for various needs like home repairs, additional work expenses, moving costs, or funeral expenses.
The borrowed amount must be repaid through future Universal Credit payments within a maximum of two years, without any interest charges. The minimum loan amount is £100, with potential amounts reaching up to £348 for singles, £464 for couples, and £812 for those with children.
Individuals with savings exceeding £1,000, or £2,000 for individuals aged 63 or older, will see a reduction in the loan amount based on their excess savings. For instance, having £1,100 in savings would reduce the loan by £100.
To qualify for a Budgeting Advance, one must have received Universal Credit for at least six months, or less if the funds are essential for job stability. Additionally, income requirements mandate earnings below £2,600 in the previous six months, or £3,600 for couples. For a Budgeting Loan, individuals must have been receiving specific benefits for six months or more.
Only one Budgeting Advance or Budgeting Loan is allowed at a time, and repayment is necessary even if Universal Credit claims cease. The DWP reserves the right to contact employers or debt collectors for repayment enforcement if necessary.
Universal Credit comprises a standard allowance, which is the base payment before considering additional elements like childcare or health-related support, and any deductions. To apply for a Budgeting Advance, individuals can use their Universal Credit online journal, visit a jobcentre, or contact the Universal Credit helpline.
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