Universal Credit

(asked on 10th October 2022) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, with reference to the requirement that Universal Credit claimants applying for a Budgeting Advance must have earned less than a set income threshold in the past six months (a) for what reason that requirement was first put in place and (b) whether she plans to review that requirement in the context of the increases in the cost of living since 2013.


Answered by
Victoria Prentis Portrait
Victoria Prentis
Attorney General
This question was answered on 17th October 2022

Budgeting Advances are available to help meet intermittent miscellaneous expenses, such as buying essential items like furniture or household equipment advances and ensure that low-income families that have an emergency financial need and do not have access to adequate savings or affordable loans can access funding to meet the emergency.

The earned income limit was put in place as those with income in the past 6 assessment periods could have the necessary means to help pay for these unexpected costs. The maximum advance provided to a claimant is also reduced pound for pound for any capital held in excess of £1,000.

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