Advances
The rules on universal credit advance payments and budgeting advances are set out in the Social Security (Payments on Account of Benefit) Regulations 2013 (SI.No.383/2013) and the Social Security (Overpayments and Recovery) Regulations 2013 (SI.No.384/2013).
NB: See below for equivalent legislation in Northern Ireland.
Advance payments |
Regulation 5 of SI.No.383/2013 |
Provides the Secretary of State with the power to make advance payments if it appears benefit entitlement rules are fulfilled and there is a financial need. |
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| Regulation 6 of SI.No.383/2013 |
Provides the Secretary of State with discretion to make an advance payment in cases where a change of circumstances increases future universal credit entitlement. |
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| Regulation 7 of SI.No.383/2013 |
Sets out the definition of financial need for an advance payment. |
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| Regulation 8 of SI.No.383/2013 |
Sets out the requirement for claimants to have notice of liability to have deductions from subsequent payments of benefit to repay an advance payment. |
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| Regulations 3, 10 and 11 of SI.No.384/2013 |
Set out the rules for recovery of advance payments under universal credit. |
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Budgeting advances |
Regulation 12 and 13 of SI.No.383/2013 |
Set out the conditions for payment of budgeting advances to universal credit claimants and the earnings conditions. |
| Regulation 14 of SI.No.383/2013 |
Sets out the conditions for the recovery of an advance and an obligation on the DWP to consider the reasonableness of recovery. |
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| Regulation 15 of SI.No.383/2013 |
Sets out the minimum and maximum amounts payable by way of a budgeting advance. |
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| Regulation 16 of SI.No.383/2013 |
Sets out how capital may affect entitlement to or payment rate of a budgeting advance. |
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| Regulation 17 of SI.No.383/2013 |
Sets out the requirement for claimants to have notice of liability to have deductions from subsequent payments of benefit to repay a budgeting advance. |
In Northern Ireland, SR.No.223/2016 and SR.No.224/2016 make provisions that are largely equivalent to those in Great Britain.
Further explanation of the legislation is set out in guidance. Please note, however, guidance is not binding and cannot override the legislation.
DWP guidance on gov.uk |
Provides details of the application process for advance payments and budgeting advances and of eligibility, payment and recovery practices. |
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DWP guidance from parliament.uk |
Sets out guidance to DWP staff on new claim advances including on decision making practice, amounts and recovery. |
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DWP guidance from parliament.uk |
Sets out guidance to DWP staff on advance payments in cases of legacy benefit claimants transferring to universal credit including that the DWP assumes claimants meet the financial need condition. |
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DWP guidance from parliament.uk |
Sets out guidance to DWP staff on advance payments in cases of change of circumstances including on eligibility, decision making practice, amounts and recovery. |
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DWP guidance from parliament.uk |
Sets out guidance to DWP staff on budgeting advances including on eligibility, decision making practice, amounts and recovery. |
Case law provides further interpretation of the legislation and establishes legal precedent.
Court of Appeal |
Court of Appeal rules that Secretary of State’s practice of excluding claimants awaiting verification of national insurance number applications from advance payments of universal credit is unlawful |
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