The DWP is handing out £812 payments (Image: Getty)
The DWP is handing out £812 payments to households this winter thanks to a little known benefit.
A Budgeting Advance is something the will pay out to UK households to help them meet the cost of an unexpected expense.
That could be anything from a broken down car to a boiler replacement or a fridge that’s packed in.
The payment is available to anyone on certain benefits such as , Income Support, or Jobseeker’s Allowance.
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While it does need to be paid back, the repayment is interest-free so it’s far cheaper than taking out a bank loan.
In order to be eligible for a Budgeting Advance, you need to earn less than £2,600 in the past six months (or £3,600 if you’re in a couple).
The smallest advance available is £100, and the limit is £348 if you’re single and have no children, £464 if you’re in a couple without children and £812 if you have kids.
You also can’t have more than £1,000 capital – ie cash in an account on hand. For example, if you have £1,250 in capital, your Budgeting Advance will be reduced by £250.
A budgeting advance is also often used by those claiming Jobseeker’s Allowance to help look for work, for example to buy train tickets to get to a job interview.
Citizens Advice says: “You might be able to get a loan as part of your Universal Credit if you need to cover a specific expense – this is called a ‘budgeting advance’.
“If you get a budgeting advance, you’ll get reduced Universal Credit payments until you’ve paid off the amount you borrow. This will normally be over 12 months. You can apply for a budgeting advance to cover things like:
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a one-off item – eg replacing a broken fridge
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work-related expenses – eg buying uniform or tools
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unexpected expenses
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repairs to your home
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travel expenses
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maternity expenses
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funeral expenses
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moving costs or rent deposit
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essential items, like clothes