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<p>A key part of the process for agreeing an advance payment on Universal Credit is
ensuring that the claimant can afford to repay it. We will not make advances which
encourage recipients to become over-indebted.</p><p> </p><p>The Department encourages
all Universal Credit claimants to actively consider how best to manage their personal
budget, with additional advice and support available from work coaches and case managers.
When an advance payment is appropriate, claimants decide what percentage of their
expected monthly award to apply for and over what period to repay it, up to a maximum
of 12 monthly instalments.</p><p><strong> </strong></p><p>The Department does not
levy penalties on claimants who do not repay their advance within either a calendar
12 month from taking out the advance, nor where they do not repay the advance in 12
monthly instalments. Outstanding repayments are actively monitored and managed, ensuring
we support claimants experiencing financial challenges whilst maintaining responsibility
to the taxpayer for recovery.</p>
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