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<p>Universal Credit new claim and benefit transfer advances provide access to a payment
for those in financial need, which can be accessed on the same day, until their first
UC payment is due ensuring no one has to be left without means of financial support.
Claimants can access up to 100% of the total expected monthly award, which they can
pay back over a period of up to 12 monthly instalments. In the Autumn Budget 2018,
we announced that from October 2021, the repayment period for these advances will
be extended to 16 monthly instalments.</p><p> </p><p>Other advances are available
for where a claimant has a substantial increase in the amount of their Universal Credit
payment, due to a change in their circumstances, in which case they can have an advance
of up to 50% of the increase and can be repaid over up to 6 monthly instalments. Also
a Budgeting advance is available for one off unexpected financial events that the
claimant is unable to meet and is repayable over a period of up to 12 monthly instalments.</p><p>
</p><p>We recognise that exceptional circumstances may occur to claimants that were
not foreseen when the advance was taken out and if this means the claimant is facing
unexpected financial hardship they can ask the Department for a deferral of the repayment
of any advance they have taken out. The deferral periods are up to 3 months for a
new claim, benefit transfer or change of circumstances advance and up to 6 months
for a Budgeting advance.</p><p> </p><p>Where a claimant has a reduction in benefit
due to a Fraud Penalty or Conditionally Sanction that equals or exceeds 40% of their
Universal Credit standard allowance then no advance repayment will be taken.</p><p>
</p><p>If there is insufficient Universal Credit in payment due to reductions such
as earnings, other income and capital yield to take the full amount of advances repayment,
a lesser amount will be taken.</p><p> </p>
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