The DWP is offering £812 payments to households this coming winter thanks to a little-known benefit. The Department for Work and Pensions will pay out a budgeting advance to UK households to help them meet the cost of an unexpected expense.
That could be anything from a broken-down car to a boiler replacement or a fridge that’s packed in. The payment is available to anyone on certain benefits such as Universal Credit, Income Support, Pension Credit or Jobseeker’s Allowance. While it does need to be paid back, the repayment is interest-free, so it’s far, far cheaper than taking out a bank loan or, worse, a payday loan. In order to be eligible for a Budgeting Advance, you need to earn less than £2,600 in the past six months (or £3,600 if you’re in a couple).
The smallest advance available is £100, and the limit is £348 if you’re single and have no children, £464 if you’re in a couple without children and £812 if you have kids.
You cannot earn more than £2,600 in the past six months (£3,600 for couples) or you won’t be eligible. You can only have one Budgeting Advance at a time, so if you haven’t yet paid off a previous one, you also won’t be allowed to take out another.
A budgeting advance is also often used by those claiming Jobseeker’s Allowance to help look for work, for example to buy train tickets to get to a job interview.
Citizens Advice says: “You might be able to get a loan as part of your Universal Credit if you need to cover a specific expense – this is called a ‘budgeting advance’.
“If you get a budgeting advance, you’ll get reduced Universal Credit payments until you’ve paid off the amount you borrow. This will normally be over 12 months. You can apply for a budgeting advance to cover things like:
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a one-off item – eg replacing a broken fridge
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work-related expenses – eg buying uniform or tools
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unexpected expenses
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repairs to your home
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travel expenses
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maternity expenses
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funeral expenses
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moving costs or rent deposit
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essential items, like clothes
To apply, you can call the Universal Credit helpline on 0800 3285644.
