How to get an interest-free loan on Universal Credit to help with moving costs
Key points
- You can borrow up to £812 interest-free if you have children, repaid automatically over up to 2 years
- The money can cover rent in advance, removal costs, furniture, and essential household items
- Apply through your Universal Credit online journal or by calling the UC helpline
If you get Universal Credit and face a big one-off cost, you can apply for a Budgeting Advance. It is an interest-free loan from the government. You repay it slowly from future UC payments — no extra interest is added.
The money can help with:
- moving costs and removal expenses
- rent in advance for a new home
- essential furniture or household items
- home repairs
- clothing
- funeral costs
How much can you get?
The amount you can borrow depends on your household:
- Single person: up to £348
- Couple: up to £464
- Family with children: up to £812
The minimum you can borrow is £100.
How long do you have to repay it?
Since 4 December 2024, repayments spread over up to 24 months. The money comes out of your Universal Credit automatically — you do not need to set up a direct debit. Spreading the cost over 2 years keeps the monthly deductions small.
Can you apply?
You can usually apply if:
- you have been on Universal Credit for at least 6 months
- you have not earned more than £2,600 in the last 6 months — or £3,600 if you have a partner
- you do not already have an outstanding Budgeting Advance
You do not need to have been on UC for 6 months if the loan will help you start a new job or stay in work.
Search for your next property on DSSmove →How to apply
Log in to your Universal Credit online journal and look for the advances section. You can also call the UC helpline on the number shown in your journal. Your work coach can help you start the process at your next appointment.
DWP will look at your earnings, any savings, and your reason for the loan before it decides.
Moving to a new rental home?
A Budgeting Advance is one of the most useful tools available if you are on UC and need to move. Private landlords often ask for rent in advance before you can move in. Removal van hire and storage can add up quickly. New homes need basics: bedding, kitchen items, and cleaning supplies.
All of these count as valid reasons for a Budgeting Advance. You do not need to be in a crisis to apply. You just need a genuine one-off cost you cannot cover from your regular UC payment.
If you are not sure whether you qualify, Citizens Advice can check for free and help you decide whether to apply.
Frequently asked questions
What if I need help with moving costs but have not been on Universal Credit for 6 months?
You may still qualify if the advance will help you start or stay in work — ask your work coach. Citizens Advice can also check what other emergency help is available in your area.
Does a Budgeting Advance reduce my Universal Credit payments?
Yes — DWP takes small amounts back from your UC each month until the loan is repaid. Repayments are spread over up to 24 months to keep them as low as possible.
Official source: https://www.gov.uk/universal-credit-advance-hardship-payment/unexpected-costs