Over 8.4 million people across Great Britain currently receive Universal Credit, yet many households continue to struggle with day-to-day expenses such as rent, food, and energy bills—even after recent benefit increases.
If you are experiencing financial hardship, there may be extra help available through the Department for Work and Pensions (DWP), local authority grants, and emergency funds which many claimants are unaware of.
Some forms of support must be repaid through future Universal Credit payments, while others do not. Below is an overview of key hardship programmes and financial assistance options for those on Universal Credit.
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Budgeting Advances
Universal Credit claimants can apply for a Budgeting Advance to help cover emergency or unexpected costs such as household items, rent, or utility bills. The amount you can borrow depends on your circumstances, such as whether you are single or have children. Advances start at £100 and can go up to £812. These advances do not carry interest but must be repaid through future Universal Credit instalments. Generally, claimants need to have been receiving Universal Credit for at least six months to qualify, with some exceptions. Detailed information is available on GOV.UK.
Hardship Payments
If your Universal Credit payments are reduced due to a sanction, you may be eligible for a hardship payment to help cover essential living costs like food, heating, and hygiene products. These payments need to be applied for and usually require repayment. You must demonstrate that without this payment, you or your household would experience serious financial difficulty. Full guidance can be found on GOV.UK.
Discretionary Housing Payments (DHP)
For those struggling to pay rent, local councils offer Discretionary Housing Payments to top up Housing Benefit or the housing element of Universal Credit. DHPs support people facing shortfalls in rent, temporary financial hardship, or increased housing costs due to changes in circumstances. Criteria and availability vary by council. More information is available on MYGOV.SCOT for Scottish claimants and GOV.UK for those in England.
Local Welfare and Emergency Support Funds
Many local councils in Scotland and England operate welfare programmes or emergency fund schemes providing help with food, fuel, clothing, and essential household items. In England, much of this assistance is delivered via the Household Support Fund.
Universal Credit Advance Payments
New Universal Credit claimants often face a five-week wait for their first payment due to the monthly arrears system. To help bridge this gap, advance payments are available but must be repaid through future Universal Credit instalments. Further details can be found on GOV.UK.
Citizens Advice encourages those struggling financially to seek help promptly as some schemes have limited funding or time restrictions.