The benefits are increasing now that Britons will have an extra year to repay money under the Budget plan

BRITISH people on Universal Credit will get an extra year to repay emergency government loans, under plans to be unveiled in the Budget.

Budget advances allow those already receiving benefits to purchase one-time emergency items, such as a new refrigerator or a trip to a job interview.

People can apply from €100 and up to €812 if they are a household with children.

But it is not free money, where people have to pay it back by withdrawing small amounts of their money future UC payments.

This can be quite tricky, especially if you’re living on a budget.

In next week’s Budget, Chancellor Jeremy Hunt is expected to announce he will double the repayment period for these loans, from 12 months to 24 months.

A Treasury source said: “These changes will help make loans more manageable for those on Universal Credit status.

“By spreading refunds over a longer period, we are taking action that is fair to both taxpayers and claimants.”

How much can I get through a budget advance?

You can borrow a minimum of €100 through the Budget Advance and the maximum depends on your needs and circumstances.

• Up to €348 if you are single
• Up to €464 if you are part of a couple
• Maximum €812 if you have children

However, you cannot borrow the money if you have a certain amount of savings.

For every savings above €1,000, your loan amount will be reduced by €1 for every €1 you have left over.

If you have cash saved, this is often better than borrowing money.

Who is eligible for a budget advance?

You can apply for the budget advance if you have Universal Credit and a number of other benefits Citizen Advice says including:

• income-related benefit for job seekers,
• income-related employment and support benefit
• Income support
• Pension credit

You must have been receiving benefits for at least six months to apply for a budget advance, unless it concerns costs related to finding work or continuing to work, such as travel.

You must also have earned less than €2,600 in the previous six months before your application, or €3,600 if you live with a partner.

If you previously took out a budget advance and are still paying it off, you will not be able to get the loan.

How do I apply for a budget advance?

If you think a Budget Advance is the best option, you should call to apply.

The Universal Credit helpline is 0800 328 5644 and calls are free from landlines and mobiles.

You can also contact your local Job Center Plus or via your online Universal Credit account.

Universal credit

Here’s everything you need to know about Universal Credit: