The Department for Work and Pensions (DWP) is offering a one-off payment—up to £812—to help individuals and families on low income manage emergency or unexpected expenses. Known as the Budgeting Advance, this interest-free loan is available to Universal Credit claimants who meet specific eligibility requirements.
This support is designed to assist with essential costs like replacing household items, paying for funeral expenses, or covering work-related costs such as uniforms or travel. It is part of the wider support package available under the Universal Credit system to ensure claimants are not left financially stranded in times of sudden need.
What Is a Budgeting Advance?
A Budgeting Advance is an interest-free loan issued by the DWP to help eligible claimants with one-off emergency expenses. Examples of acceptable uses include:
- Replacing broken white goods (e.g., cooker, fridge)
- Funeral costs
- Help with starting or staying in work (e.g., job interview travel)
- Moving home or emergency home repairs
- Maternity-related items
This advance is not a grant—it must be repaid through deductions from future Universal Credit payments over a period of up to 24 months.
More details are available on the official government site: gov.uk – Budgeting Advance.
Who Is Eligible for the £812 Payment?
To qualify for a Budgeting Advance, you must meet the following criteria:
- Be receiving Universal Credit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), or Pension Credit for at least six months—unless the payment is to help start or stay in work.
- Have earned less than £2,600 in the past six months if single, or £3,600 if part of a couple.
- Have less than £1,000 in savings—any amount over this reduces the amount you can borrow.
- Not currently repaying another Budgeting Advance.
Even if you haven’t been receiving benefits for six months, you may still qualify if the expense relates to gaining or keeping employment.
Check eligibility here: gov.uk – Budgeting Advance Eligibility.
How Much Can You Get?
The amount awarded depends on your personal situation:
- £348 for a single claimant
- £464 for a couple
- Up to £812 for those with children
The minimum amount available is £100.
Your specific entitlement is based on your ability to repay and whether you have existing debts. Repayment will be discussed during the application process.
How Is It Repaid?
Repayments are automatically deducted from your Universal Credit payments over a maximum of 24 months. If you stop receiving Universal Credit, alternative arrangements will be made, such as setting up a direct debit.
It’s important to note that you cannot receive another Budgeting Advance until the current one is fully paid off.
More information on repayments: gov.uk – Repay a Budgeting Advance.
How to Apply for the One-Off Payment
Applying for a Budgeting Advance is relatively straightforward:
- Log in to your Universal Credit account and update your journal with a request.
- Contact your Jobcentre Plus work coach or local office directly.
- Call the Universal Credit helpline on 0800 328 5644.
In most cases, a decision can be made on the same day, and if approved, the funds are transferred promptly.
Important Considerations Before Applying
- This is not a grant—you will need to repay it, so ensure you understand the impact on your future benefit payments.
- Your claim could be rejected if you’re already repaying another advance or have income/savings above the threshold.
- The loan aims to provide support only for essential or unavoidable costs, so be prepared to explain and justify your need.
Final Thoughts
The DWP’s Budgeting Advance is a vital safety net for those in financial distress and is especially helpful during times of crisis. Whether it’s fixing a broken appliance or managing funeral costs, this one-off payment offers crucial support without the burden of interest.
For the full details, visit the official guidance page: Universal Credit – Other Financial Support.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Vikas Lalit is an experienced content writer at OTE News, covering business, economy, and international affairs. With a degree in Journalism, he combines analytical thinking with engaging storytelling to deliver well-researched updates. Vikas is passionate about uncovering underreported stories that impact readers.
Outside of work, he enjoys playing chess, following cricket, and writing short stories. His commitment to integrity and in-depth analysis strengthens OTE News’ mission of providing trustworthy journalism.