If you’re receiving Universal Credit and facing urgent financial hardship, you may be eligible for an advance payment from the UK Government.
These interest-free advances, offered by the Department for Work and Pensions (DWP), can help cover essential or emergency costs before your regular payments begin or increase.
The DWP provides four types of advance payments, each designed to meet different needs depending on your circumstances.
1. New Claim Advance – Support While You Wait
When someone applies for Universal Credit for the first time, there is usually a five-week wait before receiving their first payment. This period includes:
- A one-month assessment phase where income and savings are evaluated
- A seven-day processing window for the payment to reach the bank
During this time, applicants can request a New Claim Advance, which allows them to receive up to the amount of their expected first payment. If they don’t take the full amount initially, they may apply for a second advance later.
Key Point: This is an interest-free loan, which is repaid in instalments from future Universal Credit payments.
2. Benefit Transfer Advance – Help for Those Switching Benefits
As part of the ongoing transition from legacy benefits (like income-based ESA) to Universal Credit, claimants may be eligible for a Benefit Transfer Advance.
This payment functions similarly to the New Claim Advance and helps ensure financial stability during the changeover period. The Government aims to complete this benefits transition by April 2026.
3. Change of Circumstances Advance – When Life Changes
If your situation changes — for instance, due to a new baby or an increase in rent — and your Universal Credit entitlement increases, you may qualify for a Change of Circumstances Advance.
This allows you to receive up to 50% of the amount your benefit is increasing by, giving you quicker access to the money you now qualify for.
4. Budgeting Advance – Emergency Financial Relief
A Budgeting Advance can help with unexpected or urgent expenses, such as:
- Buying or replacing essential household items (e.g. fridge, bed)
- Funeral costs
- Costs related to starting a new job
DWP staff may request proof of purchase (such as receipts) to verify that the funds are used for their intended purpose.
Budgeting Advance Loan Limits (2025)
| Household Type | Maximum Advance |
|---|---|
| Single person | £348 |
| Couple | £464 |
| With children | £812 |
Eligibility Restriction: You cannot receive a Budgeting Advance if:
- You’ve earned over £2,600 (£3,600 for couples) in the past 6 months
- You haven’t repaid a previous Budgeting Advance
How to Apply for an Advance Payment
To request an advance, you can:
- Speak to your Jobcentre Plus work coach
- Apply via your online Universal Credit account
- Call the Universal Credit helpline at 0800 328 5644
Important Notes
- Online applications are only available during your first assessment period after your identity and entitlement have been verified.
- After your first assessment, you must apply by phone.
Once approved, the funds are typically transferred within 3 working days. In emergency cases, a same-day payment may be arranged.
DWP Monitoring and Verification
If the DWP suspects that an individual is trying to exploit the system to receive unneeded advances, they may request additional evidence, such as bank statements, to confirm financial hardship.
As of May 2025, over 7.7 million people across England, Wales, and Scotland receive Universal Credit, with many taking advantage of these advance payment options for temporary support.
Universal Credit Advance Payments offer a vital lifeline for millions facing financial difficulty, whether you’re a new applicant, transitioning from legacy benefits, experiencing a life change, or facing a sudden expense.
While these are interest-free and flexible, it’s crucial to remember that they must be repaid through future benefit payments. Understanding the eligibility rules and types of advances can help you get the support you need—quickly and responsibly.
FAQs
How long does it take to receive a Universal Credit advance?
Typically, you’ll receive the money within three working days, but it may be paid the same day in emergencies.
Can I apply for more than one type of advance?
Yes, you can apply for multiple advances (e.g. New Claim and Budgeting), but you must meet the eligibility and repayment requirements.
Do I have to repay the advance payments?
Yes, all advance payments are repaid in instalments from future Universal Credit payments, although no interest is charged.
