New UC claim and working

Rye93_2

Hi,

I was hoping for some advice as I'm new to doing this in regards to UC. 

I made an application recently and it was approved. I was advised I will hear back in May about how much I'm entilted too. I'm confused however, as they offered me an advance of £700.00 which I haven't accepted. 

Basically my circumstances are that I work in retail and I'm contracted to 25 hours per week, but this can change if my employer decides to cut my hours depending on how busy we are. On average, I would say I come out with roughly £1200 per month, but this can change depending on hours. 

I have a 2 bedroom flat, but live on my own and recieve a 25% single person discount on my CT. I was hoping if anyone may have some knowledge on how much I could be entilted too? I know that this may change depending on my wages each month, but even a rough figure would be a help if at all possible.

I may be asking for something that's impossible to work out and sorry if I am, just I'm new to this so I'm in the dark. I was just confused how they offered such an amount as an advance so it's had me thinking. Not that I have any intention on accepting an advance.

Any help or advice would be amazing.

huckster

Use an online benefit calculator such as Entitledto or Turn2us.  Just enter your details and differing amount of earnings, to confirm how much UC you are likely to receive.

You have not told us whether you pay rent. For anyone on this site to give you a rough idea, would need to know your age, rent amount, whether it is private rent or social housing association and and if private the postcode area.  Which is why it is better for you to use an online benefit calculator, rather than provide your information to an online forum.

TimeLord1

The advance is to help out, and you would have it deducted over a period of time. I always thought you had to ask for a "crisis loan." I didn't know it was offered. I believe @Newcad is familiar with that process.

Newcad

Quie simply anybody making a UC claim will be offered an advance payment.

What UC offers you as a "New Claim Advance" is what the computer has worked out that you monthly payments will be.

That means that what you are offered as a New Claim Advance can change right up until your first UC payment - and if things do change then you can take more than one advance up until that first payment.

EDIT- The following has been changed so that the Qualifying rules for getting a Budgeting Advance are clearer.
After you have been on UC for 6 months then you can ask for a "Budgeting Advance"  that's an extra payment of your monthly Standard Allowance paid as an advance.
However if you have over £1,000 savings then any BA offered will be reduced by the excess that you have over £1,000.

NOTE That you can only have one advance at once. You cannot have a New Claim Advance and  Budgeting Advance at the same time.

A UC Advance can currently be paid back over 24 months, or shorter if you choose. Personal note - I currently have  £348 Standard Allowance advance repayable until March 2027. (I become a pensioner early in 2026 and my UC will stop- that did not bother the jobcentre at all).

TimeLord1

Thanks, @Newcad, that I wasn't sure about if you requested one or they offered the advance automatically. So when you reach pension age, is the UC advance paid back separately or deducted from your pension by the DWP?

Newcad

As said above I currently have a UC Budgeting Advance that I took out in February to pay back over 24 months.

My Work Coach did that despite the fact that I reach State Pension Age in Feb 2026, and so will only have paid back 12 months when my UC ends.
I did reminder her, but she wasn't particularly bothered that it wouldn't be paid back by the time my UC ends.

What happens then is that DWP Debt Management will get in touch to ask for repayment of the amount outstanding - either all at once or on a repayment plan.
They can also set up direct payment from your State Pension, or from Pension Credit if you will be getting that.

TimeLord1

Now, under legacy payments @Newcad , you probably wouldn't have been offered or aware of it. Well, you might, 😁 but most think of funerals, etc. I wonder if this has been mentioned before; probably not. Age UK used to be great for advice, but most are disappearing from towns due to funding. 

Newcad

Oh I knew, and had a "Budgeting Loan" (note the different name) in repayment when I migrated from IR ESA to UC.

It took a couple of months for Debt Management to catch up but the repayments for that loan also migrated across to become a UC deduction.

They do seem to hide information about UC Budgeting Advances, and what you can find looks designed to be offputting. Nothing new about that.

As I found though I was at a WFI and just mentioned to my WC that I was going to apply for one. She did it in about 30 seconds and the money was in the bank 3 days later, but it could have been next-day if I had wanted.

TimeLord1

Would you still have access to the UC account @Newcad to view the loan agreement and outstanding balance, or is this automatically terminated on reaching S.P.A.?

Newcad

Good question,

From August 21, 2024, the UC system automatically closes the claim at the end of the assessment period in which the claimant reaches State Pension age. (or at least it should do, but you still hear tales of it not happening as it should).

As the claim is no longer active then there should be no further changes on your account.
You can still log into the account to view/download previous statements, I believe they will be available for six months after the claim ends, but there will be no future statements.

With the claim being closed you will not have any access to your journal, etc. So if you want to be on the safe side download it all while you still can before you reach SPA.
eg. You could download the latest Advance balance during your final AP, knowing that there would be one more repayment taken from your final UC payment, leaving the rest outstanding*.

If you do want/need anything else from the account after your UC has ended then it will mean making a SAR to get that information.

*As you are no longer eligible for UC then any UC Advance that is still outstanding simply becomes a benefits overpayment and DWP Debt Management will contact you about paying it back.

TimeLord1

Would you also receive any paperwork/email with what you can do next? Obviously your rent will be stopped to reclaim it via the council and prior notification of claiming your pension and where it's to be paid, etc. I guess you're well prepared and fresh USB stick waiting.  😁

I've noticed locally to me a push by councils to open a personal account portal to deal with council tax, housing cost increases, and booking waste disposal slots. Probably to stop excessive paperwork and visits to the offices.