If we face a crisis like a broken appliance and apply for a Budgeting Advance, we’ll soon have longer to pay it back

If we’re claiming Universal Credit and need to apply for a Budgeting Advance, we’ll soon have longer to pay them back.

In his Budget in March, Chancellor Jeremy Hunt said claimants would have two years to repay, rather than one.

A Budgeting Advance is an interest-free loan that we can get if we’re claiming Universal Credit.

It can be used to pay for things in an emergency, like replacing a broken appliance.

We pay them back through our usual UC payments. This just means that our payments are reduced until we’ve repaid the amount of the Budgeting Advance.

The change comes in from December 2024. It means we’ll have twice as long to repay, which could make life easier.

We can claim a Budgeting Advance before we receive our first payment. Or, if our circumstances have changed and our payments are increasing, we can apply while we wait for our first amended payment.

We can get up to 100 per cent of our Universal Credit payment.

And there was other good news from the Budget.

The £90 fee for getting a debt relief order is being dumped.

Debt relief orders can help us write off our debt if we owe less than £30,000 and don’t own a home.

Some debt agencies have been paying the fee for people getting a debt relief order. But now there will be no need, as the charge has been scrapped.

Help with debt is available for free (we should never have to pay for it). Organisations like StepChange, Citizens Advice and National Debtline offer specialist advice.

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