Universal Credit, is the first of its kind, started by the UK, ensures that you don’t stay unemployed for long. Replacing the six different kinds of benefits, the Universal Credit is at your rescue, if you are under a threshold of income. Meeting your daily needs is no more a problem, as the credit by the UK ensures that you can claim it once, anytime. Paid monthly at a fixed date, you can even claim the budgeting advance by claiming online. 

In this article, we shall discuss the advance of the universal credit. Claiming the advance and the significance of the same shall also be a discussing point. 

What is budgeting advance?

For instance, you have planned your budget for the current month, but an unexpected expense pops out. It is shooting your credit amount from universal credit. What should you do now? Specifically, for such situations, universal credit has started the budgeting advance for its citizens.

In other words, it is like a loan which can be taken from the universal credit, under circumstances of unforeseen expenses. 

How does budgeting advance work?

On one hand,  the loan is disbursing against your universal credit, yet youneed to pay 0% interest on the advance handed over to you. Making it easy for you to meet your unforeseen expenses, the amount of the advance is repaid on the remaining payments. It means the payments are adjusted for the consecutive payment periods, which does not go beyond 12 months. 

Interesting facts about budgeting advance you must know:

There are certain clauses which you must be aware of:

  •        Threshold and ceiling amount

The minimum amount of advance you can claim is 100 euros. For the maximum ceiling, the following table gives a better glimpse:                

Married Children Amount (in pounds)
NO NO 348
YES NO 464


  • Reduction of budgeting loan: During circumstances when the capital is in excess of 1000 pounds, the difference amount is subtracted the advance by the excess amount.
  • Claiming of the benefits: The budgeting loan is claimable if you have availed the universal credit at least once in the past 6 months. The maximum ceiling of earning for the past half-year is 2,600 pounds for singles. For the couples, it stands close to 3,600 pounds.
  • Previous advances: This is what makes you ineligible for the budgeting loans. If you are under previous advance debt at the same time of claiming the advance, you stand ineligible. To start taking a new advance, you need the clear the previous dues. 

Application for the advance:

Claiming for the advance is over the phone. By dialling on the helpline for universal credit, you can claim the budgeting loan. The ease with which you get the loan depends on the following factors:

  • Ease of repayment: The probability of repaying the advance under stipulated time. 
  • Bank balance: The amount present in your bank as balance. 

Upon rejection of the application, you cannot appeal any further for the same claim!


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