Budgeting advance query

We want to hear from you: please tell us about your experience of the online community.

Carer90

Hi all, I migrated over to UC a few months ago. Previously, when I was on legacy benefits (income suppport) I was entitled to apply for a budgeting loan of up to £348 as a single person. When it got colder I would often apply for £100 (which is the minimum you could apply for) to help buy warmer winter clothing and also things to help stay warm in winter which was always approved and in the summer I would buy summer clothing (mostly from vinted) to see me through the warmer months. What happens on UC? I read you can only get budgeting advances approved for things like fridges and other white goods etc.

I would like to add I am currently repaying a budgeting advance that I took out whilst awaiting my first UC payment. But what if I needed some new clothing?...

Anybody had any experience? surely new warmer clothing/blankets/bedding is considered a necessity? and a good enough reason to apply?

I'm new to UC so still learning. I hear UC is a lot stricter at handing out loans but would be nice to hear any personal experiences.

Regards

Adrian_Scope

Good afternoon @Carer90

The advance you took out when awaiting your first UC payment is likely a New Claim Advance rather than a Budgeting Advance. You should be able to check which it is under the 'advances' option on your UC account.

If it's a Budgeting Advance, you cannot receive another one until you have paid this back in full. If it's a New Claim Advance, it can be possible to claim a Budgeting Advance too, depending on the repayments you're currently making (as they're only allowed to deduct a set amount each month).

It's my understanding that Budgeting Advances can be used for clothing and this is what the Deposited Papers say:

Budgeting Advances provide valuable access to interest free payments for one off items. They are available to claimants who have been receiving UniversalCredit or an income-related benefit continuously for a period of 6 months and have no income, or a very low income.

They are designed to help claimants with irregular expenses, for example:

• linked to obtaining or retaining employment such as work clothes, tools, travelling expenses and childcare costs
• buying essential household items such as furniture, cot, pram, appliances,clothing and footwear
• help with rent in advance or removal expenses to secure new accommodation
• improvement, maintenance and security of their home

Budgeting Advances are not intended to help pay for unexpectedly highhousehold bills for example an electricity or gas bill.Budgeting Advances are discretionary payments. There is no right of appeal but the claimant can ask for reconsideration.