BRITS on Universal Credit will get an extra year to repay emergency loans from the Government under plans set to be unveiled at the Budget.
Budgeting advances help those already receiving benefits buy one-off emergency items like a new fridge or a trip to a job interview.
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People can apply from as little as £100 and up to £812 if they are a household with kids.
But it is not free money, with people having to to pay it back by having small amounts taken out of their future UC payments.
This can be a real squeeze, especially when living on a tight budget.
In next week’s Budget, Chancellor Jeremy Hunt is expected to announce that he is doubling the repayment period for these loans, from 12 months to 24 months.
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A Treasury source said: “These changes will help make loans more manageable for those on Universal Credit.
“Through spreading repayments over a longer time period, we are taking action that is both fair to taxpayers and to claimants.”
How much can I get through a Budgeting Advance?
You can borrow a minimum of £100 through the Budgeting Advance and the maximum depends on you needs and your circumstances.
- Up to £348 if you’re single
- Up to £464 if you’re part of a couple
- Up to £812 if you have children
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You won’t be able to borrow the money if you have a certain amount of savings though.
For any savings over £1,000, your loan amount will be reduced by £1 for every £1 you have over it.
If you have cash saved it’s more often than not better than borrowing money.
Who is eligible for a Budgeting Advance?
You can apply for the Budgeting Advance if you’re on Universal Credit and a number of other benefits Citizens Advice says, including:
- means-tested Jobseeker’s Allowance,
- means-tested Employment and Support Allowance
- Income Support
- Pension Credit
You’ll need to have been claiming benefits for at least six months to apply for a Budgeting Advance, unless it’s to cover costs associated with getting work or staying in work, like travel.
You’ll also need to have earned less than £2,600 in the previous six months before your application, or £3,600 if you live with a partner.
If you’ve previously taken out a Budgeting Advance and are still paying it off you won’t be able to get the loan.
How do I apply for a Budgeting Advance?
If you think a Budgeting Advance is the best option then you need to call to apply.
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The Universal Credit helpline is 0800 328 5644 and calls are free from landlines and mobiles.
You can also contact your local Job Centre Plus or through your online Universal Credit account.
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