DWP extends Budgeting Advance repayment period to 24 months for Universal Credit claimants

The Department for Work and Pensions (DWP) has extended the repayment period for the Budgeting Advance from 12 to 24 months. Universal Credit claimants can now borrow up to £812 for emergencies, allowing for smaller repayments over a longer time. While this change eases financial pressure, Universal Credit payments will be reduced due to loan deductions. Other benefit claimants may also qualify for a Budgeting Loan, which helps cover essential costs but must be repaid through benefit deductions. The DWP has published online guidance to simplify the application process. Claimants can apply for loans online for quicker decisions, with responses expected within seven days for electronic applications.