Many households on Universal Credit may not know they can access a one-off payment of up to £812 to help cover urgent costs. This support comes in the form of a budgeting advance, designed to assist families facing sudden financial pressure. It is an option worth exploring for those who need help with emergencies or essential expenses without turning to high-interest loans.
What a Budgeting Advance Is
A budgeting advance is a type of payment provided to Universal Credit claimants to cover specific costs that cannot be avoided. The minimum amount available is £100, but the maximum depends on your circumstances. A single person can borrow up to £348, couples can receive up to £464, and households with children can get as much as £812. This makes it a valuable lifeline for families who need extra support.
Who Can Apply for the Payment
Eligibility for a budgeting advance depends on several factors. To qualify, you must be receiving Universal Credit or certain other benefits for at least six months. These include Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, or Pension Credit. If you have recently moved from Universal Credit to Pension Credit, the time spent on Universal Credit also counts towards the six-month requirement.
How Savings and Debts Affect Eligibility
Your ability to borrow is influenced by your financial situation. If you have more than £1,000 in savings, or £2,000 if you or your partner are aged 63 or over, your eligibility may be reduced. The Department for Work and Pensions also considers whether you are already repaying an existing Budgeting Loan or Crisis Loan. These rules ensure that the payment goes to households most in need of urgent financial support.
What the Payment Can Be Used For
A budgeting advance can be used for a wide range of essential costs. Families often apply to cover expenses such as replacing broken household appliances, buying school uniforms or work tools, or managing unexpected travel needs. It can also help with funeral costs, maternity needs, rent deposits, or moving expenses. By covering these essentials, the payment helps families avoid debt and cope better with financial shocks.
How the Payment Is Given
Budgeting advances are paid directly into the same bank account where your benefits usually arrive. The amount received must be repaid over time through automatic deductions from your Universal Credit payments. While this means your monthly benefit may be slightly reduced, the system ensures repayments are manageable and spread over several months. This makes it a safer option compared to borrowing from private lenders.
Why It Matters for Families
The £812 one-off payment could make a real difference for households struggling with rising costs. It offers peace of mind by covering essential expenses without creating unmanageable debt. With clear rules, flexible repayment, and government support, the budgeting advance provides an important safety net for families relying on Universal Credit. For many, it is a practical way to bridge financial gaps and focus on meeting daily needs.