Millions of people claim financial support each year thanks to universal credit.
Giving between £257 and £324 to around six million people each month, universal credit replaced many of the older legacy payments such as household benefits and income-based jobseeker's allowance when it first came in back in 2013.
But with Christmas now fast approaching and the recent cut to the top-up, many will have been left worrying about their finances.
You can read more about universal credit payment dates for Christmas 2021 here.
First-time claimants can often face a wait of up to five weeks to get their first payment. For many, especially during the festive season, this can be a huge source of financial worry.
But it is possible to get an advance on your first payment if you need to.
How can I do this?
If you need help to pay your bills or cover other costs while you wait for your first universal credit payment, you can apply to get an advance. The most you can get as an advance is the amount of your first estimated payment.
You can apply for an advance payment in your online account or through your Jobcentre Plus work coach. Read everything you need to know about your universal credit online account here.
You’ll need to:
- explain why you need an advance
- verify your identity (you’ll do this when you apply online or on the phone with a work coach)
- provide bank account details for the advance (talk to your work coach if you cannot open an account)
You’ll usually find out the same day if you can get an advance.
Do I have to pay back this money?
Yes. You may be able to get up to 100% of your estimated universal credit payment, but you will need to repay an advance from future payments, or by other means if you no longer get universal credit. This could be from wages or other benefits you may be getting.
The first deduction is made on the day you get your first payment. You must usually pay back the advance within:
- 24 months if you apply for the advance on or after April 12, 2021 because you’ve made a new claim for universal credit
- 12 months if you applied for the advance before April 12, 2021 because you made a new claim
- 6 months if you apply for the advance because of a change of circumstances
You can ask for your repayments to be delayed if you cannot afford them. Repayments can be delayed for either three months if the advance is for a new claim, or one month if the advance is for a change of circumstances. However, this is only allowed in exceptional circumstances.
How does this work?
Say, for example, your first estimated payment is £344 and you get £344 as an advance. You choose to pay back your advance over 24 months, which is £14.33 per month. This means you'll get £329.67 on your first payment date - this is your first payment minus the bit you’re repaying (£344 minus £14.33).
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