Universal credit down payment: how to get it back?


I amOften an advance is required on your first payment of Universal loan to help you pay substantial expenses.

When applying for Universal loan, you can request an advance to help you pay bills such as water, gas or electricity, and get some upfront.

It is then repaid over a longer period of time with cost-sharing to facilitate payments, with deductions from future universal loan payments.

How to apply for an advance

When applying for an advance, you can do so through your account online or via Jobcentre plus work coach.

All you need to do is explain the need for an advance, verify your identity and provide bank account details to receive an advance if approved.

The process is usually quick, and you will often find out if you have been approved or need more information on the same day you apply for your advance.

How to return an advance

You can start the process of refunding the advance from the first payment.

To do this, you have to choose which repayment option you want to use, with two options between a 24 month repayment period or a 12 month repayment period.

If you apply on or after the day April 12, 2021, you will be given 24 months to pay off.

If you applied before April 12, 2021, you will be given 12 months to repay.

Does interest apply to universal credit advances?

There is no interest charged on the advance, which means that the total amount you pay is equal to the amount you received.

Hence, if your first payment is for 344 lbs, you will receive an advance for this amount, and then return this amount, divided by 12 or 24, depending on the repayment period.

These deductions will then be deducted from your regular payments.

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