 |
answer text |
<p>Applications for a Universal Credit advance payment can be made in person, by telephone
or online depending on the claimant’s circumstances. Depending on the type of advance
payment application, we will consider whether the claimant satisfies the eligibility
conditions for receiving the advance. If the claimant is eligible we will agree the
amount of the advance and the period over which the advance will be recovered from
their future Universal Credit payments. If the claimant has made the application in
person or by telephone, the outcome of the application is explained to the claimant
face to face or over the phone and then their online journal is updated. If they have
made the application online the outcome will be displayed on screen.</p><p> </p><p>The
Department has taken a number of steps to ensure that advances meet the needs of claimants
and that the recovery arrangements are personalised and reasonable. Affordability
is managed by ensuring the recovery rate will not be more than the equivalent of 40%
of the claimant’s standard allowance. The claimant is given the choice over the repayment
period and it is explained to them exactly how much will be deducted each month depending
on the option they choose. If the claimant is making the advance application online,
these options are clearly displayed on screen for them to choose from.</p><p> </p><p>Help
is available for those struggling to meet the recovery rate. In exceptional circumstances,
recovery can be deferred for up to three months from the start of the recovery period.
If the claimant tells us that due to unforeseen circumstances they are experiencing
hardship and are having difficulty repaying the advance over the agreed recovery time,
we would explain that repayment can be deferred by a maximum of three months.</p><p>
</p><p>From October 2019 the maximum rate of deductions from a claimant’s standard
allowance will be reduced from 40% to 30%. From October 2021 we are increasing the
recovery period for advances from 12 to 16 months, further supporting those in financial
need.</p><p> </p><p>Information about advances is available on the Gov.uk site at:</p><p><a
href="https://www.gov.uk/guidance/universal-credit-advances" target="_blank">https://www.gov.uk/guidance/universal-credit-advances</a></p>
|
|
