Thousands of households across the UK struggling with unexpected financial burdens may be eligible for a one-off payment of up to £812, thanks to the Budgeting Advance scheme offered by the Department for Work and Pensions (DWP).
This support comes as part of the UK government’s broader Universal Credit system, aiming to provide temporary financial assistance for emergencies such as home repairs, moving costs, or employment-related expenses.
What Is the DWP Budgeting Advance?
The Budgeting Advance is an interest-free loan available to people claiming Universal Credit or certain legacy benefits. It helps cover unforeseen or essential costs that claimants may otherwise struggle to afford.
While not a grant—the money must be paid back—the loan provides crucial breathing space during difficult periods, particularly for those on low incomes or with little to no savings.
How Much Can You Get?
The maximum you can receive depends on your household situation:
- £348 – if you’re single with no children
- £464 – if you’re part of a couple with no children
- £812 – if you have one or more children
The minimum amount available is £100. The final amount offered may be less depending on your financial situation and whether you already owe money to the DWP.
Who Is Eligible?
To qualify for a Budgeting Advance, you must meet several criteria:
- You must have been 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 loan is needed to help you start a job.
- You must have earned less than £2,600 in the past six months (or £3,600 as a couple).
- Your savings must be less than £1,000.
- You must not currently be repaying another Budgeting Advance.
For more detailed eligibility guidelines, visit the official GOV.UK Budgeting Advance page.
What Can the Loan Be Used For?
This payment is designed to assist with essential or emergency expenses, such as:
- Replacing broken appliances (washing machines, fridges)
- Emergency home repairs
- Travel costs for a job interview or starting work
- Funeral costs
- Moving expenses
It is not intended for everyday living costs, like groceries or utility bills, unless linked to an emergency situation.
How Is It Repaid?
Repayments are automatically deducted from your future Universal Credit payments. As of 4 December 2024, the repayment period has been extended to up to 24 months, easing the financial burden for claimants.
If your Universal Credit payments stop, you will still be required to repay the outstanding amount—arrangements can be made directly with the DWP.
How to Apply
You can apply for a Budgeting Advance in the following ways:
- Via your Universal Credit online account (update your journal)
- By speaking to your Jobcentre Plus work coach
- Or by calling the Universal Credit helpline at 0800 328 5644
Most decisions are made quickly—often on the same day or within a few working days.
What If You’re Waiting for Your First Universal Credit Payment?
If you’ve just applied for Universal Credit and are facing financial hardship, you may be eligible for a Universal Credit Advance Payment instead. This is also a loan, aimed at covering living costs during the five-week wait for your first payment.
Learn more about Advance Payments here.
Final Thoughts
With rising living costs and economic uncertainty continuing to affect many UK households, the Budgeting Advance scheme provides a valuable safety net for those facing unexpected financial shocks. While it’s not a grant and must be repaid, it offers much-needed support when people need it most.