Introduction
Are you struggling with unexpected expenses while receiving Universal Credit? This article will guide you through the ins and outs of Budgeting Advances, a helpful tool that can provide you with the financial support you need. Learn how to apply, what you can use the funds for, and the eligibility criteria. If you need further assistance, Contend’s highly trained AI legal experts are here to help you navigate your legal challenges and understand your options. With Contend, getting the easiest legal help in the UK has never been simpler.
If you’re receiving Universal Credit and find yourself in need of extra cash for a specific expense, you might qualify for a Budgeting Advance. This can be a helpful way to manage unexpected costs without falling into further financial trouble.
What is a Budgeting Advance?
A Budgeting Advance is a type of loan that you can apply for if you need to cover certain expenses. However, keep in mind that if you receive this advance, your Universal Credit payments will be lower until you’ve paid back the amount you borrowed, typically over a period of 12 months.
What Can You Use a Budgeting Advance For?
You can apply for a Budgeting Advance to help with various costs, including:
- Replacing essential items like a broken fridge
- Work-related expenses such as uniforms or tools
- Unexpected bills or repairs
- Travel costs (like getting to a job interview)
- Maternity or funeral expenses
- Moving costs or rent deposits
- Buying essential clothing
If you haven’t received your first Universal Credit payment yet, you’ll need to apply for an advance payment instead, not a Budgeting Advance.
Cost of Living Payments
Recently, the government issued a Cost of Living Payment of £299 to help those on Universal Credit. This payment was distributed between February 6 and February 22, 2024, for those who were eligible based on their assessment period from November to December 2023.
If you believe you should have received this payment but didn’t, you can report a missing payment on the government website.
Eligibility for a Budgeting Advance
To qualify for a Budgeting Advance, you need to be receiving Universal Credit for at least six months, or have been on certain other benefits like Jobseeker’s Allowance or Income Support for the same duration. Additionally, your earnings in the six months before your application must be below £2,600 (or £3,600 if you live with a partner).
One important note: if you or your partner are still repaying a previous Budgeting Advance, you won’t be able to get another one.
How Much Can You Borrow?
The minimum amount you can borrow is £100. The maximum amount varies based on your situation:
- Up to £348 if you’re single without children
- Up to £464 if you’re part of a couple without children
- Up to £812 if you have children
If you have savings or capital over £1,000, your advance may be reduced by the amount over this limit.
How to Apply for a Budgeting Advance
To apply, you’ll need to call the Universal Credit helpline. An adviser will assess your eligibility and determine how much you can borrow by looking at your income, debts, and savings. You can usually expect a decision on the same day.
Universal Credit Helpline:
- Phone: 0800 328 5644
- Welsh Language: 0800 328 1744
- Textphone: 0800 328 1344
If you prefer to communicate in British Sign Language (BSL), you can use Video Relay.
If Your Application is Refused
If your application for a Budgeting Advance is denied, you cannot appeal the decision. However, you can ask for a review if you have new evidence or if your circumstances have changed.
If you’re in need of financial assistance, there are many resources available, including support from Contend’s legal expert chat. Contend’s highly trained AI legal experts will work with you to provide guidance and help you understand and resolve your legal problems.
Managing Debt and Financial Struggles
If you’re facing debt or rent arrears, there are steps you can take to manage your situation. You can find advice on dealing with debt and tips on reducing your living costs. If you’re struggling to pay your bills, don’t hesitate to seek help.
For more information on managing your finances and finding support, check out resources available from local charities and financial advisors. Remember, you’re not alone, and there are people and organizations ready to assist you.
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