MILLIONS of people claim Universal Credit but you might not know you can get payments to tie you over if you suffer a shortfall.
The benefit is paid to households on the lowest incomes to help with everyday living costs.
Sometimes, your Universal Credit is cut due to a sanction or if you've received a penalty for fraud.
However, you can get what's known as a "hardship payment" to help tie you over.
The payment is a loan that has to be paid back to the government but it can come in useful if you need the cash then and there.
Households who were issued hardship payments between January 1, 2014 and January 11, 2021, could be line for a refund from the DWP.
What is a Universal Credit hardship payment?
You could be entitled to a hardship payment if your Universal Credit has been cut due to a sanction or you've received a penalty for fraud.
Sanctions are issued when you don't meet certain responsibilities, like if you miss a meeting with your work coach.
The loans are designed to tie you over until your next Universal Credit payment.
But if you're struggling financially the following month you can apply for another payment.
You have to pay the money back in most cases - it will usually be taken out of your Universal Credit payments each month until it's paid off.
Who's eligible?
You have to meet a number of criteria if you want a hardship payment.
You must be 18 or over (16 if your payment is reduced because of fraud) and struggling to pay for a child or young person's accommodation, heating, food and hygiene.
You must have made "every effort" to stop spending money on non-essential things such as leisure or entertainment activities.
You must have done everything possible to get money from other sources such as family and friends.
And lastly, you must have done all the work-related activities that you were supposed to do in the seven days before applying for the hardship payment.
How much can I get?
Hardship payments are roughly 60% of the amount you were sanctioned by the previous month.
That means the loan will be worth different amounts depending on what your normal Universal Credit allowance is.
As an example, if you're single and under 25 the normal monthly standard allowance is £265.31.
Sanctions for this group are £8.70 a day for as long as it lasts, so 28 days straight of sanctions would total a £243.60 deduction.
If you were given a hardship payment of 60% on that amount, you'd get roughly £146.
If you're single and 25 or over, a standard monthly allowance is £334.91.
Sanctions for this group are £11 a day for as long as it lasts, so 28 days straight of sanctions would total a £308 deduction.
If you were given a hardship payment of 60% on that amount, you'd get roughly £184.80.
How can I claim for a hardship payment?
You can make a hardship payment claim by updating your Universal Credit account.
Alternatively, you can contact your nearest Jobcentre or call the Universal Credit helpline on 0800 328 5644.
But you'll need some evidence to hand to prove you're entitled to a payment.
This mean you'll have to explain:
- what you’ve done to find other sources of financial help from family or friends
- what other income or savings you might have to help pay your costs
- what you’ve done to reduce your non-essential costs, like entertainment costs
- which living costs you’re struggling to meet
You're more likely to get a payment if you can show a budget or financial statement proving your monthly income and living costs.
You should be able to check if you've had a hardship payment by speaking to your work coach or contacting your local Jobcentre.
In other news, thousands on Universal Credit are facing cuts to payments - check if you're affected here.
Plus, millions of grandparents are set for a pay rise next year.