Once your application for universal credit has been approved you may be eligible for an advance payment.
The advance payment amount will be subject to your universal credit award amount and will need to be paid back within 12 months of receiving universal credits. If you start work within the 12 months you will get different options on how to pay.
Universal Credit Advance Payment
You may apply for up to 100% of your award amount, For example if your awarded £1200 (Per Month) you will be able to claim a £1200 advance payment.
An advance payments can help if you are in financial hardship and need to catch up with your bills, the universal credit system works in arrears so an advance can bring you back in front.
|Universal Credit Award||Advance Payment Amount||Monthly Deductions||Your Payment's Each Month|
|£1,200||£1,200 (100%)||£100 (Per Month)||£1,100 (Per Month)|
|£900||£450 (50%)||£37.50 (Per Month)||£862.50 (Per Month)|
|£1,800||£1,800 (100%)||£150 (Per Month)||£1,650 (Per Month)|
How To Apply For An Advance?
If you have made a recent claim for universal credit, you will see the option of advance payment on your online portal, you will need to be logged into the account.
You will need to follow the instructions online and complete a small application.
Alternatively you can speak to your work coach and they can make the application for you, they will ask you for certain details listed below before they an process an application for an advance payment.
- Why you need the advance
- Proof of identity (Passport) (Driving Licence)
- Bank details or credit union account
If you start work before your advance is paid back in full, DWP will deduct any amount owed either from your remaining benefits or from your salary from your new employer. You can discuss re-payment options with your work coach or by calling the helpline.
Although your advance payment is considered a loan you will not be charged interest. If you do not pay back your loan for any reason, recovery methods may mean you will be charged on top of your borrowing amount.
You can fin more information on your universal credit advance on the gov.uk website, if you have any query or questions you can visit our community forum.