STRUGGLING Brits waiting for their first Universal Credit payment can apply for an advance loan to get them through. It can take up to five weeks before you are enrolled on the system and in the meantime your existing benefits will stop altogether. It’s this waiting period that plunges vulnerable people further into debt, which […]
STRUGGLING Brits waiting for their first Universal Credit payment can apply for an advance loan to get them through.
It can take up to five weeks before you are enrolled on the system and in the meantime your existing benefits will stop altogether.
It’s this waiting period that plunges vulnerable people further into debt, which is why The Sun is calling for it to be slashed to two weeks as part of our Make Universal Credit Work campaign.
The welfare scheme was first introduced in 2010 but as more people move onto it, it’s expected 3.2million people will be worse off.
Ministers have announced they will give an extra two weeks of several benefits to people on Universal Credit in future – but this won’t come in until 2020.
In the meantime, we’ve put together a guide to all you need to know about advance payments before taking one out.
An advance payment is a loan that you can ask for to help you through the five week wait for your first Universal Credit payment.
You can also ask for one if you’re already on the scheme but expect your payment to increase because your circumstances have changed.
UNIVERSAL Credit replaces six benefits with a single monthly payment.
One million people are already receiving it and by the time the system is fully rolled out in 2023, nearly 7 million will be on it.
But there are big problems with the flagship new system – it takes 5 weeks to get the first payment and it could leave some families worse off by thousands of pounds a year.
And while working families can claim back up to 85 per cent of their childcare costs, they must find the money to pay for childcare upfront – we’ve heard of families waiting up to 6 months for the money.
Working parents across the country told us they’ve been unable to take on more hours – or have even turned down better paid jobs or more hours because of the amount they get their benefits cut.
It’s time to Make Universal Credit work. We want the government to:
Together, these changes will help Make Universal Credit Work.
Join our Universal Credit Facebook group or email UniversalCredit@the-sun.co.uk to share your story.
Claimants can borrow up to 100 per cent of their estimated payment but you can also ask for less.
It’s an interest-free loan which means you will only pay back what you borrow. But remember, you will be expected to pay it back.
The money will be transferred to you within three working days and is supposed to last the full five weeks before your first payment.
You can ask for an advance as soon as you make your first claim up until you receive the first payment.
You can either speak to your work coach at the job centre or apply by calling the helpline on 0800 328 5644, Monday to Friday between 8am and 6pm.
You’ll need to explain why you need it, provide bank details of where the cash should be transferred to and have had your identity checked.
Claimants can also apply through their online journal by following steps on the “apply for an advance” section.
Not everyone is automatically entitled to an advance loan and you may be refused.
You won’t be able to get one if the Department for Work and Pensions thinks you have enough money to last you until your next payment such as from a final earnings or redundancy payments.
IF you’re experiencing trouble applying for your Universal Credit, or the payments just don’t cover costs, here are your options:
Apply for an advance – Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it’s a loan which means the repayments will be automatically deducted from your future Universal Credit pay out.
Alternative Payment Arrangements– If you’re falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you’re part of a couple.
Budgeting Advance – You may be able to get help from the government to help with emergency household costs of up to £348 if you’re single, £464 if you’re part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You’ll have to repay the advance through your regular Universal Credit payments. You’ll still have to repay the loan, even if you stop claiming for Universal Credit.
Cut your Council Tax – You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your payments aren’t enough to cover your rent.
Foodbanks – If you’re really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the Trussel Trust website.
You will be refused one if you have savings, or living with parents, relatives or friends.
You can ask for the decision to be reconsidered but you don’t the right to appeal it.
If you’re refused a loan but are in need of help, you can apply for a Budgeting advance to help you with any emergency household costs.
You may also be able to apply for the Flexible Support Fund.
Claimants who have taken out a loan are expected to pay it back within the first 12 months of getting it.
The Department for Work and Pensions deduct an amount from your Universal Credit payment every month, starting with your first pay out.
You can work out how much will be deducted from your payment every month by dividing the full cost of the loan by 12.
For example, if you borrowed £1,500 you will see £125 taken off your Universal Credit payment every month.
You can ask for your repayments to be delayed for up to three months if you can’t afford them, but this will only be allowed in exceptional circumstances.
You will still be expected to repay the loan even if you get a job and are no longer claiming benefits.
You will receive a letter telling you how much you owe and to contact the DWP Debt Management contact centre to arrange payments.
If you ignore the letter, the DWP can talk to your employer to have the amount you owe dedicated directly from your earnings or pass the debt onto an agency to collect it on your behalf.
If you really can’t afford the repayments, you will need to contact the Debt Management centre.
They will be able to help you come up with an affordable arrangement by setting affordable monthly repayments.
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