Budgeting Advance calculator
An interest-free advance on Universal Credit for a one-off cost, repaid from your future payments. See the most you could borrow and the monthly repayment.
How a Budgeting Advance works
A Budgeting Advance is an interest-free loan built into Universal Credit for a one-off cost, such as an essential appliance or getting started in a new job. The smallest is £100. The most depends on your household: £348 single, £464 for a couple, and £812 if you have children. Savings over £1,000 are taken off the maximum pound for pound.
You pay it back out of your future Universal Credit, normally within 24 months, with no interest. That means your monthly UC is lower until the advance is cleared, so it helps to borrow only what the one-off cost needs. To qualify you usually need to have been on Universal Credit, new-style ESA or Pension Credit for at least 6 months, unless the advance is to help you start or stay in work.
Worked example
A parent with £400 in savings needs £600 for a replacement cooker. Their household cap is £812, and because their savings are under £1,000 nothing is deducted, so they can borrow the full £600. Repaid over 24 months that is about £25 a month off their Universal Credit until it is cleared.
Common questions
How much can I get as a Budgeting Advance?
The most depends on your household: up to £348 if you are single, £464 as a couple, or £812 if you have children. The smallest advance is £100.
How do savings affect it?
Savings over £1,000 reduce the advance pound for pound. So if you have £1,200 in savings, the most you can borrow drops by £200. If your savings cut it below the £100 minimum, you cannot get one.
How is a Budgeting Advance repaid?
It is interest-free and repaid out of your future Universal Credit, usually within 24 months. Your UC is reduced each month until it is cleared, so it is worth borrowing only what you need for the one-off cost.
What can I use it for?
A Budgeting Advance is meant for one-off costs such as an essential household item, help to start a new job, or costs tied to staying in work. It is not for regular bills. You usually need to have been on Universal Credit, ESA or Pension Credit for 6 months, unless the money is to help you start work.
Is it the same as a Budgeting Loan?
No. A Budgeting Advance is for people on Universal Credit. A Budgeting Loan is the older equivalent for people still on legacy benefits such as income-based JSA or Income Support. The idea is similar, but you cannot have both at once.