Claiming Universal Credit and Struggling Financially
It is fairly common, for people on benefits or low income to struggle from time to time. The cost of living is so high and even if working, sometimes the outgoings can be far more than what is coming in. If this is a problem for you, then it might help to get some advice on budgeting - Money Advice Service.
Unfortunately Universal Credit are unable to give more than someone's entitlement and they also can't release payments earlier than due. Some people do qualify for advances from Universal Credit but these have strict eligibility rules - Advances.
If you are a bit unsure how Universal Credit calculate your payment or you have any doubts over your statement, then it can be worth asking to get your statement checked by someone either in the Facebook group or at a local welfare advice agency. If you have been claiming Universal Credit and been getting underpaid, then you could be owed money.
We have put together the following advice for anyone who is struggling financially.
Unfortunately Universal Credit are unable to give more than someone's entitlement and they also can't release payments earlier than due. Some people do qualify for advances from Universal Credit but these have strict eligibility rules - Advances.
If you are a bit unsure how Universal Credit calculate your payment or you have any doubts over your statement, then it can be worth asking to get your statement checked by someone either in the Facebook group or at a local welfare advice agency. If you have been claiming Universal Credit and been getting underpaid, then you could be owed money.
We have put together the following advice for anyone who is struggling financially.
FOOD AND ESSENTIALS
If you are in emergency or crisis for food and essentials then unfortunately Universal Credit can only help if you are in your first assessment period - New Claim Advance.
A long time ago, the benefit office used to operate crisis funds but that role and the associated funds were taken off of the social security system and passed to local authorities, to handle as they see fit.
SCOTLAND
The Scottish Welfare Fund helps families and people in Scotland who are on low incomes through Crisis Grants and Community Care Grants.
You can apply for a:
WALES
The Discretionary Assistance Fund provides 2 types of grant that you don’t need to pay back.
NORTHERN IRELAND
Discretionary Support is quick, short-term financial support. It is paid either as an interest-free loan or grant into your bank account.
Universal Credit Contingency Fund Payment - Non-repayable payment that may be available to people who have made a new claim to Universal Credit and are continuing to experience financial difficulties, subject to meeting certain eligibility criteria (including being in first or second assessment period).
ENGLAND
Unfortunately England don't have a scheme which applies to every local authority but many of the areas do still offer help through a Local Welfare Assistance Scheme. Search for your local authority and have a look at their website or give them a call. They may not provide you with cash but may be able to help with food and essential items.
FOOD BANKS
Trusell Trust Food Banks are in lots of locations. You can search to see if one is near and see their openings times. You may require a voucher to access a food parcel but there is information on their website but get in touch with them if you are having difficulty.
There are other foodbanks, which tend to be locally set up. Have a search on the internet or get in touch with your local welfare rights place for advice.
ELECTRIC AND GAS
If you are on pre-payment meter then you may get help from one of the schemes mentioned above but if not, then give your supplier a call and explain your situation with financial hardship and ask if they offer discretionary credit. All the major companies do and they should help as long as your need is short term. If you are currently paying back a debt through the metre, then you can ask to discuss getting the repayments lowered.
If you are on bills and can't afford your next payment or have missed payments, call and speak to your supplier. They can reschedule your payments and spread the arrears over the coming months.
Make sure to tell your supplier if any of the following apply and ask to be added to their priority service -
It is definitely worth speaking to your supplier about your concerns, as they may be able to help you and it will help prevent you being disconnected.
If you are in emergency or crisis for food and essentials then unfortunately Universal Credit can only help if you are in your first assessment period - New Claim Advance.
A long time ago, the benefit office used to operate crisis funds but that role and the associated funds were taken off of the social security system and passed to local authorities, to handle as they see fit.
SCOTLAND
The Scottish Welfare Fund helps families and people in Scotland who are on low incomes through Crisis Grants and Community Care Grants.
You can apply for a:
- Crisis Grant – if you're in crisis because of a disaster (like a fire or flood), or an emergency (like losing your money or an unexpected expense).
- Community Care Grant – to help you or someone you care for to start to live, or to carry on living, a settled life in the community.
WALES
The Discretionary Assistance Fund provides 2 types of grant that you don’t need to pay back.
- Emergency Assistance Payment (EAP) - A grant to help with essential costs after an emergency, or if you have experienced a disaster such as a flood or fire in your home, or extreme financial hardship for reasons including delays in benefit payments. The payment will help you cover the cost of food, gas and electricity, clothing and emergency travel.
- Individual Assistance Payment (IAP) - A grant to help you or someone you care for live independently rather than enter or remain in an institution such as a care home or hospital. With this grant you can receive white goods such as a fridge, cooker and washing machine, essential home items such as beds, bedding and seating.
NORTHERN IRELAND
Discretionary Support is quick, short-term financial support. It is paid either as an interest-free loan or grant into your bank account.
Universal Credit Contingency Fund Payment - Non-repayable payment that may be available to people who have made a new claim to Universal Credit and are continuing to experience financial difficulties, subject to meeting certain eligibility criteria (including being in first or second assessment period).
ENGLAND
Unfortunately England don't have a scheme which applies to every local authority but many of the areas do still offer help through a Local Welfare Assistance Scheme. Search for your local authority and have a look at their website or give them a call. They may not provide you with cash but may be able to help with food and essential items.
FOOD BANKS
Trusell Trust Food Banks are in lots of locations. You can search to see if one is near and see their openings times. You may require a voucher to access a food parcel but there is information on their website but get in touch with them if you are having difficulty.
There are other foodbanks, which tend to be locally set up. Have a search on the internet or get in touch with your local welfare rights place for advice.
ELECTRIC AND GAS
If you are on pre-payment meter then you may get help from one of the schemes mentioned above but if not, then give your supplier a call and explain your situation with financial hardship and ask if they offer discretionary credit. All the major companies do and they should help as long as your need is short term. If you are currently paying back a debt through the metre, then you can ask to discuss getting the repayments lowered.
If you are on bills and can't afford your next payment or have missed payments, call and speak to your supplier. They can reschedule your payments and spread the arrears over the coming months.
Make sure to tell your supplier if any of the following apply and ask to be added to their priority service -
- are disabled
- have a long-term illness
- are over state pension age
- have young children living with you
- have financial problems - for example if you are behind on rent
It is definitely worth speaking to your supplier about your concerns, as they may be able to help you and it will help prevent you being disconnected.
PAYING RENT
If rent arrears are a problem or you have a shortfall in your housing element, then you may wish to consider applying for a discretionary housing payment.
If you are struggling to pay you rent, then make sure to keep communication with your landlord open and if you are at risk of eviction then speak to Shelter. Shelter (England), Shelter (Scotland), Shelter (NI), Shelter (Wales)
A Discretionary Housing Payment is operated by your local area.
Information on DHP in Scotland
Information on DHP in Wales
Information on DHP in Northern Ireland
Search for your council in England -Each LA sets their own rules, although the government to have a DHP Guidance and Good Practice Guide that they supply to all areas.
COUNCIL TAX
If you are on a low income then you may qualify for help with your council tax. Get in touch with your local authority to make a claim. If you are struggling to pay your council tax then give them a call and see if you can pay by instalments. If your instalments are already high then ask if they can be spread over more months. Some councils do offer discretionary council tax support payments, in exceptional circumstances. Do not ignore council tax as they can be very fast in taking steps for debt recovery.
DEDUCTIONS FROM UNIVERSAL CREDIT
If you are paying back advance payment from your Universal Credit and you have temporary circumstances that are making these unaffordable then it is possible for Universal Credit to stop deducting for advances for a period of up to 6 months. This is discretionary though, so not guaranteed they will agree. You would call them on 08003285644 and ask for your advance payments to be deferred. If you do this then make sure to also call debt management as repayments for other debts may increase.
If you have any DWP debts or tax credits debt or housing benefit debts being deducted from your Universal Credit and you are struggling with hardship then you can call DWP debt management and ask for repayments to be lowered to the least amount they will accept. It is possible for them to set a repayment at £5 per month. You may be asked to explain your priority debts and budgeting. You can contact DWP Debt Management on 08009160647.
BANK AND OVERDRAFT CHARGES
If this is causing you to go without basic essentials and paying priority bills, then speak to your bank immediately. They have a duty towards their customers. You may be better asking to speak to someone in the financial difficulties team. If appropriate they can hold charges, give you a temporary overdraft to stop you incurring more charges, etc. You may even find that they refund some charges as a gesture of good will.
If rent arrears are a problem or you have a shortfall in your housing element, then you may wish to consider applying for a discretionary housing payment.
If you are struggling to pay you rent, then make sure to keep communication with your landlord open and if you are at risk of eviction then speak to Shelter. Shelter (England), Shelter (Scotland), Shelter (NI), Shelter (Wales)
A Discretionary Housing Payment is operated by your local area.
Information on DHP in Scotland
Information on DHP in Wales
Information on DHP in Northern Ireland
Search for your council in England -Each LA sets their own rules, although the government to have a DHP Guidance and Good Practice Guide that they supply to all areas.
COUNCIL TAX
If you are on a low income then you may qualify for help with your council tax. Get in touch with your local authority to make a claim. If you are struggling to pay your council tax then give them a call and see if you can pay by instalments. If your instalments are already high then ask if they can be spread over more months. Some councils do offer discretionary council tax support payments, in exceptional circumstances. Do not ignore council tax as they can be very fast in taking steps for debt recovery.
DEDUCTIONS FROM UNIVERSAL CREDIT
If you are paying back advance payment from your Universal Credit and you have temporary circumstances that are making these unaffordable then it is possible for Universal Credit to stop deducting for advances for a period of up to 6 months. This is discretionary though, so not guaranteed they will agree. You would call them on 08003285644 and ask for your advance payments to be deferred. If you do this then make sure to also call debt management as repayments for other debts may increase.
If you have any DWP debts or tax credits debt or housing benefit debts being deducted from your Universal Credit and you are struggling with hardship then you can call DWP debt management and ask for repayments to be lowered to the least amount they will accept. It is possible for them to set a repayment at £5 per month. You may be asked to explain your priority debts and budgeting. You can contact DWP Debt Management on 08009160647.
BANK AND OVERDRAFT CHARGES
If this is causing you to go without basic essentials and paying priority bills, then speak to your bank immediately. They have a duty towards their customers. You may be better asking to speak to someone in the financial difficulties team. If appropriate they can hold charges, give you a temporary overdraft to stop you incurring more charges, etc. You may even find that they refund some charges as a gesture of good will.
DEBT AND BUDGETING ADVICE
If debt and budgeting is often a problem for you then it can help to speak through your situation and options with a trained advisor. There are lots of organisations out there but the Government recommended one is Money Advice Service.
More Frequent Payments on Universal Credit can be helpful if you cannot budget your money for a month.
If debt and budgeting is often a problem for you then it can help to speak through your situation and options with a trained advisor. There are lots of organisations out there but the Government recommended one is Money Advice Service.
More Frequent Payments on Universal Credit can be helpful if you cannot budget your money for a month.
