When one makes a new claim for Universal Credit (UC) their first payment generally will arrive seven days after their assessment period. This means it tends to take around five weeks to get the first payment. However, new claimants could get up to the amount of the first estimated payment as an advance – but this will need to be paid back.
A Universal Credit advance can be made for those that may face financial hardship while waiting for their first payment.
The advance does need to be paid back. It will be taken in instalments from future Universal Credit payments or by other means if they stop receiving the payments.
Recipients will start paying the money back out of their first payment – meaning the amount they get each month will be lower than otherwise expected.
It’s down to the claimant as to how many months they pay the advance back over, but it must be within the time limit.
Usually it must be paid back within:
- 24 months if the person applied on or after April 12, 2021
- 12 months if the person applied applied before April 12, 2021.
Interest isn’t paid on it, meaning the total amount paid back is the same.
Claimants can apply through their online account, the UC helpline or through their Jobcentre Plus work coach.
Decisions on advances are generally quick and applicants can expect to hear the outcome the same day they apply.
Claimants can receive up to 100 percent of their estimated UC payments and they will be informed of how much they can claim in their advance.
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Anyone who stops getting benefits whilst still repaying an advance will receive a letter asking them to contact the DWP Debt Management Contact Centre to make arrangements and detailing how much they still owe.
Not making arrangements could mean the DWP recovers the amount by contacting the person’s employer and having it deducted from their earnings, or asks an independent debt collection agency to collect the remaining sum.
Claimants could be refused the advance if the following apply:
- They did not have their identity checked at the Jobcentre
- They are deemed to have enough money to last until their next Universal Credit payment
- They live with parents, relatives or friends
- They have final earnings or redundancy payments
- They have accessible savings.
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