In addition to their daily payments, certain Universal Credit applicants may be eligible for advances.
Universal Credit is a monthly or twice-monthly allowance to assist with daily expenses for certain residents in Scotland.
UC is usually only open to those who are low-income, unemployed, or unable to work.
Such prior benefits you may be entitled to may be replaced by Universal Credit:
- Housing Benefit
- Child Tax Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Working Tax Credit
You do not need to do something if you already get all of these benefits unless:
- Whether the conditions have changed, you must announce it.
- You are contacted by the Department for Work and Pensions (DWP) about switching to Universal Credit.
If you get UC, you will also be eligible for other financial incentives, which are described on the GOV.UK website.
Any of these advantages are in the form of financial planning or budgeting, but there are also straightforward financial alternatives to UC.
Payments in advance and in times of need
You can request an advance payout after you’ve filed a lawsuit if you don’t have enough money to survive on while you wait for the first payment.
If you are unable to pay your rent, heating, food, or hygiene needs as a result of a sanction, you can request a hardship payment.
You must repay it from the Universal Credit contributions, which will be reduced once you do so.
Alternative Payment Methods
You or your landlord will be entitled to apply for an Alternative Payment Arrangement whether you’re facing financial problems or are late on your bill (APA).
You will be able to get an APA for the following purposes, depending on the circumstances:
- pay your deposit to your landlord directly
- get charged on a more regular basis than once a month
- If you’re part of a couple, you’ll get shared payments.
To apply for an APA, speak with your job mentor.
Budgeting ahead of time
You may be eligible for a Budgeting Advance to assist you with:
- Replacement of a faulty cooker is an example of an unexpected household expense.
- Having a job vs. Keeping a Job
- funeral expenses
You’ll pay that back with the daily Universal Credit fees, which will be reduced once you’ve paid it off completely. If you lose Universal Credit, you’ll have to find another way to pay back the money.
What is the maximum amount you can borrow?
The lowest loan number available is £100. You can reach the following levels:
- If you’re single, the cost is £348.
- If you’re in a pair, it’ll cost you £464
- If you have children, the cost is £812.
What you get depends on whether you have over £1,000 in deposits and can repay the loan.
To qualify for a Budgeting Advance, you must meet one of the following criteria:
- If you use the funds to help you start a new career or stay in a job, you’ve been receiving Universal Credit, Employment and Support Allowance, Income Support, Jobseeker’s Allowance, or State Pension Credit for 6 months or more.
- In the previous six months, you paid less than £2,600 (£3,600 for couples).
- any past Budgeting Advance loans have been paid off.
You will also be eligible for other benefits
If you wish to receive a reward without taking into account your assets, your partner’s savings, or their wages, you can apply for either:
- Jobseeker’s Allowance in a “new style” (JSA)
- Employment and Support Allowance (ESA) in a ‘new style’ (ESA)
When you’re sick, use a welfare calculator to see what additional benefits you may be eligible for, such as Personal Independence Payment.
Legal fees, childcare allowances, funerals, prescriptions, tuition payments, among other expenses might be eligible for assistance.