Universal Credit Advance Payment: How It Works, How to Apply, and Repayments Explained
If you are waiting for your first Universal Credit payment and you do not have enough money to manage, you may be able to get an advance payment. A Universal Credit advance is a loan. It is interest free, but it must be paid back.
This guide explains the main types of Universal Credit advances, how to apply, what you can use them for, and what happens if repayments make your monthly payment hard to manage.
Can you get an advance on Universal Credit?
Yes. You can apply for a Universal Credit advance if you need money before your next payment. There are different types of advance depending on your situation, but all advances are interest-free loans that must be repaid through deductions from your future Universal Credit payments.
There are different types:
- New claim advance: if you need money before your first Universal Credit payment.
- Budgeting Advance: if you already get Universal Credit and need help with a one off cost.
- Change of circumstances advance: if your circumstances change and you need extra help before your next payment.
All advances are repayable. Repayments are usually taken automatically from your Universal Credit payments.
Important: an advance is a loan, not extra Universal Credit
A Universal Credit advance is not extra benefit money. It is an interest-free loan from the Department for Work and Pensions. This means your future Universal Credit payments will usually be lower while repayments are being taken.
If you can manage without an advance, you may prefer to avoid it. If you cannot manage without it, an advance can be a practical short term option.
How do you get an advance on your first Universal Credit payment?
You can apply for a new claim advance if you have made a Universal Credit claim and cannot afford essential costs while waiting for your first payment. The advance is paid early and then repaid through deductions from your future Universal Credit payments.
The most you can usually get is up to the amount of your first estimated Universal Credit payment.
Official guidance:
Who can get a new claim advance?
You can usually apply if:
- you have made a Universal Credit claim
- you are waiting for your first payment
- you cannot afford essential costs while you wait
You will usually need to verify your identity as part of the process.
How much can you get as a first payment advance?
The amount depends on your circumstances. The maximum is usually up to your first estimated payment. This is not the same for everyone.
If you are not sure what your first payment is likely to be, you can use the official benefits calculators as a rough estimate:
How long does it take to get a Universal Credit advance?
To apply, you may need to explain:
- why you need the advance
- your bank account details for payment
- any money or savings you have
You will usually find out the same day if you can get a new claim advance.
How do you apply for a Universal Credit advance?
You can apply in any of these ways:
- send a message in your Universal Credit journal
- ask at your Jobcentre or speak to your work coach
- call the Universal Credit helpline
Universal Credit helpline (official contact page):
What is a Universal Credit Budgeting Advance?
A Budgeting Advance is a Universal Credit loan for one-off essential costs if you already receive Universal Credit. It can help with items such as furniture, moving costs, or household equipment. It must be repaid through deductions from your future payments.
Official guidance:
What can a Budgeting Advance be used for?
A Budgeting Advance is for a one off cost. Examples include:
- furniture
- household items such as a cooker, washing machine or vacuum cleaner
- essential items for your family such as mobility aids or child safety products
- a TV, in some circumstances
- clothes or footwear
- repairs or security for your home
- funeral expenses
- a rent deposit or removal costs, if you are moving home
What can you not use a Budgeting Advance for?
You cannot use a Budgeting Advance for ongoing costs. This includes:
- food
- household bills such as gas or electricity
- rent
- paying off debts
How much is a Budgeting Advance?
The smallest amount you can borrow is £100. The maximum depends on your household:
- Up to £348 if you are single
- Up to £464 if you are part of a couple
- Up to £812 if you have children
These figures can change. Check the current amounts on GOV.UK before you apply.
Who can get a Budgeting Advance?
You usually need to either:
- have been getting Universal Credit (or certain other benefits) for 6 months or more, or
- need the money to help you start a new job or stay in work
You will not usually be eligible if:
- you have earned more than £2,600 in the past 6 months (or £3,600 combined for couples), or
- you have not paid off a previous Budgeting Advance (you can usually only have one at a time)
How do you apply for a Budgeting Advance?
You can apply in the same ways as a new claim advance:
- message in your Universal Credit journal
- speak to your work coach or Jobcentre
- call the Universal Credit helpline
Do you have to pay back a Universal Credit advance?
Yes. All Universal Credit advances must be repaid. Repayments are normally taken automatically from your monthly Universal Credit payment. The amount deducted depends on how much you borrowed and how long you agree to repay it over.
For both new claim advances and Budgeting Advances, you usually pay back the advance over up to 24 months.
Official repayment information and examples:
How long do you have to repay a Universal Credit advance?
You usually repay advances over up to 24 months. Repayments are normally taken from your next Universal Credit payment.
How much will be taken from your Universal Credit each month?
The amount depends on how much you borrowed and how long you agree to repay it over. Deductions are taken automatically before your payment is made.
What is the Fair Repayment Rate (15% cap)?
From 30 April 2025, the maximum amount that can usually be deducted from your Universal Credit standard allowance for debts and deductions was reduced from 25% to 15%. This change is known as the Fair Repayment Rate.
What if you cannot afford the advance repayments?
If advance repayments are making it hard to cover essential costs, you can ask Universal Credit to review your deductions. In some cases, repayments can be reduced or delayed depending on your circumstances.
For a new claim advance, GOV.UK says you can ask for repayments to be delayed for 3 months if you cannot afford them.
Can you delay Universal Credit advance repayments?
Yes. GOV.UK says you can ask for repayments to be delayed for up to 3 months for a new claim advance if you cannot afford them.
Can you reduce deductions from Universal Credit?
You can request a review of deductions through your journal or by contacting Universal Credit. A decision will be made based on your circumstances.
What happens to your advance if you stop claiming Universal Credit?
You still need to repay a Universal Credit advance even if you stop claiming. If you move to another benefit, deductions may continue. If you leave benefits completely, the Department for Work and Pensions will usually contact you to arrange repayment.
If you move to another benefit, deductions may continue from that benefit.
If you move off benefits completely, the Department for Work and Pensions (DWP) will usually contact you about repayment through DWP Debt Management.
This is explained in the GOV.UK guidance on advances:
Should you take a Universal Credit advance?
A Universal Credit advance can help if you cannot afford essential costs while waiting for payment. However, because it must be repaid, your future Universal Credit payments will be lower. It is important to weigh your short term needs against the longer term impact.
It may help to think about:
- whether you can manage for a short period without borrowing
- whether lower payments over the next months would create longer term stress
- whether you have any urgent costs that cannot wait
Universal Credit advance payment FAQs
How long does a Universal Credit advance take to arrive?
GOV.UK says you will usually find out the same day if you can get a new claim advance. Payment timing can vary depending on checks and your circumstances.
How much advance can I get on Universal Credit?
For a new claim advance, the maximum is usually up to your first estimated Universal Credit payment. For a Budgeting Advance, GOV.UK states the maximum is £348 if you are single, £464 if you are part of a couple, and £812 if you have children.
Is a Universal Credit advance a loan?
Yes. An advance is a loan. It is interest free, but it must be repaid.
Can I get two Universal Credit advances?
You can only have one Budgeting Advance at a time. Rules differ for other advance types.
Will an advance reduce my Universal Credit every month?
Yes. Repayments are usually taken automatically from your monthly payment.
Can I cancel a Universal Credit advance after applying?
If the advance has not yet been paid, you may be able to withdraw the request. Once paid, it must be repaid.
Does a Universal Credit advance affect other benefits?
Repayments may reduce other benefits if you move from Universal Credit while still owing money.