About this guide
A guide to Universal Credit advances, Budgeting Loans, short-term benefit advances and what to consider before borrowing from future benefit payments.
Universal Credit advances
If you are waiting for your first Universal Credit payment, your payment has been reduced or stopped, you face an unexpected one-off cost, or your circumstances have changed, you may be able to apply for an advance or other support. Advances are usually repaid from later Universal Credit.
UNIVERSAL CREDIT ADVANCESFirst-payment advance
A first-payment advance can be up to the amount of your estimated first Universal Credit payment. GOV.UK says repayment is usually spread over future payments and can normally run up to 24 months.
FIRST PAYMENT ADVANCEBudgeting Loans
Budgeting Loans are for some people who have been receiving specified legacy benefits or Pension Credit for at least 6 months. People receiving Universal Credit normally use the Budgeting Advance route instead.
BUDGETING LOANSCHECK BUDGETING LOAN ELIGIBILITYOther benefit advances
A short-term advance may be available in urgent financial need when waiting for a first payment of certain benefits. Eligibility and repayment depend on the benefit.
SHORT-TERM BENEFIT ADVANCEThink about repayment
An advance can solve an immediate gap but lowers later benefit payments while it is repaid. If deductions are making essentials unaffordable, ask for advice about deductions, repayment arrangements and any non-repayable crisis support that may be available.