The Department for Work and Pensions has issued a Christmas update to those claiming Universal Credit.
Certain families who receive the benefit - intended for those on a low income or out of work - may be eligible to receive a one-off sum of up to £800.
Christmas can be a difficult time financially, and the Budgeting Advance is available to help those who urgently need additional assistance in the run-up to the holiday.
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As reported by the Daily Express, the payment is intended to help people who suddenly find themselves in need of money - for example to fix a broken boiler or oven.
It is also available to those who need to cover the cost of a funeral following a death.
People claiming the Budgeting Advance may receive anywhere from £100 all the way up to over £800, depending on their circumstances.
Single people are entitled to up to £348, while those part of a couple could get anywhere up to £464.
The highest amount is reserved for those who have children, with a Budgeting Advance worth up to £812.
Familial circumstances, however, are not the only factor taken into consideration when it comes to determining how much someone will get.
The DWP also considers whether a person can actually pay the loan back before issuing it.
Furthermore, if a person has savings over £1,000, they will see their Budgeting Advance impacted.
The Government reduces the loan amount it offers by £1 for every £1 a person has in savings over the £1,000 threshold.
While an advance may provide welcome assistance, it is worth noting this is not “free money”.
Instead, a Budgeting Advance is classified by the DWP as a loan, meaning it must be repaid at a later date.
This usually occurs through a person’s future Universal Credit payments, meaning their sum will be lower until the advance is totally repaid.
People can expect to be told how much their payments will be reduced by.
To be eligible for the Budgeting Advance, a person must have been receiving Universal Credit or another eligible benefit for six months or more, unless they need the funds to help them start a new job or keep an existing one.
They must have also earned less than £2,600 - or £3,600 jointly for couples - in the last six months.
A Budgeting Advance can be requested if a person gets in touch with their local Jobcentre Plus work coach.
