DWP handing out 'extra' £812 payments but with sting in the tail

Over 2 million people could get an extra £812 Department for Work and Pensions (DWP) payment. The money comes in the form of a Budgeting Advance loan uplift and must be repaid, though, people who claim benefits are being warned.

Repayment is made through your usual Universal Credit payments, which will be reduced over the following months until the loan is fully settled. The Labour Party government say to get a Budgeting Advance, all of the following criteria must be met: you’ve been getting Universal Credit, Employment and Support Allowance, Income Support, Jobseeker’s Allowance or State Pension Credit for 6 months or more, unless you need the money to help you start a new job or stay in work, you’ve earned less than £2,600 (£3,600 together for couples) in the past 6 months and you’ve paid off any previous Budgeting Advance loans.

According to the Government, the loan amount is based on your specific needs and will be determined in consultation with your work coach. You can borrow a minimum of £100, with the maximum amount of £812 being contingent on your personal situation and status.

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The Government say you might be able to get a Budgeting Advance to help with emergency household costs such as replacing a broken cooker, getting a job or staying in work, funeral costs or travel costs, as well as moving costs or a deposit for rent.

Advances may also be used for repairs to your home, buying a uniform or tools for work, essential items like clothes or maternity expenses (although you might also be entitled to the £500 Sure Start Maternity grant). You'll only need to return the exact amount you borrowed, unlike loans from banks or credit cards which typically include interest charges.

Repayment is generally spread over a 12-month period. The minimum loan amount is £100, with the maximum varying based on individual circumstances. Repayment of the loan is made directly to the DWP at 0% interest within two years.

The repayment amount is determined by your total income, including any benefits you receive and what you can afford. If you cease receiving benefits, the remaining loan balance must still be repaid.