Brits on Universal Credit given 24 months to repay advance loans from next month
UNIVERSAL Credit claimants will be given 24 months to repay advance loans from next month.
An advance payment is a loan that you can ask for to help you through the five-week wait for your first Universal Credit payment.
It's designed for people who need help to pay the bills or cover other costs while they wait.
Claimants who have taken out a loan are currently expected to pay it back within the first 12 months of getting it.
However, that time is set to double to 24 months from April 12, 2021.
The extension, which was previously set to come into effect in October 2021, was brought forward by Chancellor Rishi Sunak in last week's Budget.
How to apply for advance payment
AN advance payment is a loan that you can ask for to help you through the five week wait for your first Universal Credit payment.
You can apply for an advance payment in your online account or through your Jobcentre Plus work coach.
You're allowed to request the loan from the moment you first apply for Universal Credit until the date you get your first payment.
You'll need to explain why you think you need the advance, verify your identity (at your first Jobcentre Plus interview) and provide bank details for the advance.
If you can't open a bank account, speak to your work coach.
You'll usually be told the same day if you will get your advance loan.
If you need help, call the Universal Credit helpline on 0800 328 5644 (Textphone: 0800 328 1344).
Lines are open from 8am-6pm, Monday to Friday.
The change acknowledges that advance loans end up as debt, and that struggling claimants need longer to repay it.
The Sun has been calling for the five-week wait to be slashed to two weeks as part of our "Make Universal Credit Work" campaign.
From next month, the deduction rate will also be reduced to 25% of the standard allowance, down from 30%.
The Department for Work and Pensions (DWP) told The Sun the extended repayment period will only apply to new advance payments taken out from April.
We explain 11 ways to get extra cash or help if you're on Universal Credit.
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The £20 a week Universal Credit uplift in payments is being extended for another six months, Mr Sunak revealed in the Budget.
However, it's since confirmed the boost will come to an end in October.