How to get a budgeting advance if you’re claiming universal credit?

If you’re claiming universal credit, you may be able to get a budgeting advance to help with unexpected costs or one-off expenses.

A budgeting advance is a loan of up to £348 (if you’re single) or £464 (if you’re part of a couple). You’ll have to repay the loan within two years, and you won’t be able to get another loan until you have paid back the total amount of any previous budgeting loan.

You can borrow up to £812 if you have children or other dependents.

You must have claimed universal credit for at least six months to be eligible for a budgeting advance. You’ll also need to have the following:

– A good reason for wanting the loan, such as an unexpected bill or cost
– A realistic plan for repaying the loan

To apply for a budgeting advance, log in to your universal credit account and select the journal tab. Add a journal entry by clicking the green button and selecting the option “A message for my work coach.”

budgeting advance

You must make a journal entry explaining that you want to apply for a budgeting loan/advance. Your work coach will either arrange an appointment at your local job center or complete the application on your behalf.

budgeting loan application

Repaying a Budgeting Loan

You’ll make fixed monthly repayments, which will be deducted from your universal credit payments.

If you’re still getting universal credit when the budgeting advance is due to be repaid, DWP will deduct the amount you owe from your universal credit payments until it’s paid off.

If you stop claiming universal credit, you must repay the budgeting advance in full or arrange installments. You can set up a direct debit or make regular payments until the debt is cleared.

If you’re struggling to repay your budgeting advance, you should contact your Jobcentre Plus office as soon as possible or contact the Debt Management Service on 0800 916 0647

How will I be paid a Budgeting/Loan Advance?

If your budgeting advance is approved, the money will be paid into your bank account within three working days. If you don’t have a bank account, you will be able to get your payment through the

You’ll then have to repay the loan, plus interest, over a period of 12 to 104 weeks. The amount you pay back each week will depend on your earnings.

Can I get a budgeting loan?

If you have a new claim for universal credit, you cannot apply for a budgeting loan, and you will be excluded if:

  • You get Jobseekers Allowance or employment support allowance
  • You owe more than £1500 for crisis or budgeting loans
  • You are involved in industrial action (strike, walkout)

You can apply if you are on the old-style legacy benefits and have not yet moved to universal credit.