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<p>New claimants to Universal Credit have always been able to apply for a Universal
Credit Advance in their first month if they need some financial support until the
first regular payment of Universal Credit is made.</p><p> </p><p>We have previously
increased the maximum amount available for advances from 50 per cent to 100 per cent
of the total award, and increased the repayment period from 6 months to 12 months.
Last month’s Budget extended - from October 2021 - the maximum period over which an
advance can be recovered, from 12 to 16 months. From October 2019, we will also reduce
the maximum rate at which deductions can be made from a Universal Credit award from
40% to 30% of the standard allowance</p><p> </p><p>Additionally in the Budget, it
was announced that income related legacy benefits, Income Support, income related
Employment and Support Allowance and income based Jobseeker’s Allowance will continue
for two weeks after a claim for Universal Credit has been made, from July 2020. This
will apply to all managed migration cases and natural migration cases where a claim
to Universal Credit ends entitlement to the legacy benefit. This measure means that
around 1.1 million people will see a one-off gain of approximately £200, between 2020/21
and 2023/24.</p>
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