Budgeting Advance
A Budgeting Advance is an interest-free loan available to Universal Credit claimants to help with one-off expenses such as buying essential household items, covering the cost of starting a new job, or dealing with an emergency. The minimum loan is £100; the maximum is £348 for a single person, £464 for a couple, or £812 for families with children. Repayments are deducted automatically from future Universal Credit payments.
To qualify for a Budgeting Advance you must have been receiving Universal Credit (or a legacy benefit) for at least six months, have no outstanding Budgeting Advance debt, and have earned less than £2,600 (single) or £3,600 (couple) in the preceding month. Loan maxima are £348 (single), £464 (couple without children), or £812 (families with children). Repayment is spread over a maximum of 24 months via automatic UC deductions — there is no interest. If you are still on a legacy benefit (such as Income Support or JSA), the equivalent product is a Budgeting Loan from the Social Fund, with similar limits. Apply through your UC online journal or by calling the UC helpline. Urgent cases may qualify for an Emergency Payment instead, which is a grant rather than a loan in truly exceptional circumstances.