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<p>Universal Credit advances must be repaid in either a maximum of 12 months (for
new claim, benefit transfer and budgeting advances) or 6 months (for a change of circumstances
advances). The amount of the advance awarded is divided by either up to 6 or 12 to
get the appropriate monthly repayment rate.</p><p> </p><p>This is explained in the
advance award discussion with the claimant to make sure they can afford to repay the
advance. However, if a claimant wishes, they can pay it back in less than the maximum
number of months available, as long as the monthly repayment does not exceed the maximum
repayment rate of a claimant’s standard allowance, which as a result of the 2018 Autumn
Budget will be reduced from 40% to 30%.</p><p> </p><p>If during the recovery of an
advance the claimant experiences an unforeseen expense that would cause them or their
family genuine hardship if they were required to continue to repay the advance, then
they can be offered a deferral period of the repayment of the advance of up to 3 months
for a new claim, benefit transfer or change of circumstance advance and up to 6 months
for a budgeting advance.</p>
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