Help managing your money while waiting for your first Universal Credit payment

If you’ll struggle before your first Universal Credit payment, you can ask to be paid early. This is called an advance payment, or advance loan in Northern Ireland.

You can ask for the full payment or a smaller amount, either in one go or in multiple requests. But only ask for what you need, as your future Universal Credit payment will be reduced by up to 25% until the loan is repaid – which can take up to two years.

You can request an advance payment by:

1. Signing in to your online Universal Credit accountOpens in a new window 
2. Calling the free Universal Credit HelplineOpens in a new window or Universal Credit Service Centre in Northern IrelandOpens in a new window
3. Talking to your work coach.
4. Asking a Citizens Advice Help to Claim Adviser

You’ll need to explain why you need the money and provide your bank account details.

You should get a decision the same day, with the money paid into your bank account within three working days – or the same day if you can’t wait. If you’re unsuccessful, you can ask for the decision to be reconsidered.

From April 2025 if you claim Universal Credit the amount of money that can be taken from your standard allowance each month towards repayments will be reduced from 25% to 15%.  

When you’ve applied for Universal Credit, you’ll have answered questions about your situation. This is to work out how much you’ll get, and the elements you qualify for.

But it’s always worth double checking this was calculated correctly. Use our Benefits calculator to see which benefits you could be getting.

Or, for a full benefits check, see Advicelocal to find a benefits specialist near youOpens in a new window

Local welfare schemes can give out vouchers to pay for bills and essentials such as:

• food
• clothing
• gas or electricity
• broadband and phone
• petrol or diesel, and
• household items, such as cookers or fridges.

The scheme you can apply to depends on where you live:

• In England, apply to your local council for the Household Support FundOpens in a new window
• In Scotland, apply to The Scottish Welfare FundOpens in a new window
• In Wales, apply to The Discretionary Assistance FundOpens in a new window
• In Northern Ireland apply to The Finance Support ServiceOpens in a new window

Foodbanks usually offer free food to anyone that has a referral voucher.  

They might also give you a voucher for gas and electricity if you’re on a pre-pay meter and can’t afford to top up. 

You can ask for a referral voucher by contacting your:

• GP
• health visitor
• support worker
• local councilOpens in a new window
• social worker, or
• child’s school.

You can also ask the police or a local charity, like:

• Citizens Advice EnglandOpens in a new window
• Citizens Advice ScotlandOpens in a new window
• Citizens Advice WalesOpens in a new window
• Advice NIOpens in a new window in Northern Ireland.

You’ll be told which foodbank you can use, but to find your nearest options, see:

• Independent Food Aid NetworkOpens in a new window
• Trussell TrustOpens in a new windowOpens in a new window

You might qualify for a grant, which is extra money you won’t have to pay back.

To find and apply for help, you can use both the:

• Turn2us Grants SearchOpens in a new window
• Lightning Reach PortalOpens in a new window 

Borrowing money from a lender or someone you know might seem like a quick solution, but there’s a risk of falling into a cycle of debt.

Try to see borrowing as a last resort to cope until you get back on your feet. Even seemingly low-cost options can lead to a spiral of uncontrollable costs.

If you’ve tried all the options above and are looking at ways to borrow money, make sure you understand:

• exactly how much it will cost you
• whether you can afford the repayments.

For more help and compare ways to borrow, see:

• Making sure you can afford to borrow
• Borrowing money from people you know
• Your options for borrowing money

Once you’ve received your first Universal Credit payment, it will be paid on the same dates (or the working day before if it lands on a weekend or bank holiday). This is usually: 

• once a month in England and Wales
• once a month in Scotland, but you can ask for twice a month
• twice a month in Northern Ireland, but you can ask for once a month. 

If your payment dates are different to your income from work or previous benefits, you might need to adjust your budget to make sure that essential bills are covered.

Make sure you plan for months when you’ll spend more, such as birthdays or months when certain bills are due.

To help, our free and easy to use Budget planner records all your spending and gives you a breakdown of your finances. You’ll also see personalised tips to make your money go further.

If you’re worried you’ll struggle, ask your work coach about an Alternative Payment Arrangement (APA)Opens in a new window. An APA can mean you’re paid more often or some of your payment is paid to your landlord directly for your rent.

In England and Wales, you’re usually responsible for paying your rent to your landlord. You might also have this option in Northern Ireland and Scotland, where it’s normally paid directly to them.

When you know the date of your Universal Credit payment, ask your landlord if you can move the date you pay your rent – so it’s a day or two later.

This means your rent money will quickly leave your account again, making it harder to mix it up with money that’s available to spend.

You might also want to consider keeping your rent money in a separate bank account, to make it even easier. This could also help if you can’t change your rent date.

Either way, make sure you set up or change your standing order for this new date. Your landlord will then be paid automatically every month. You can usually do this:

• using online or mobile banking, or
• asking your bank to do it for you.

As you’re waiting to claim Universal Credit, you might qualify for help paying your Council Tax or Rates.

The discount usually depends on your circumstances, like where you live, how much you earn and if you live with anyone. But it could mean you won’t have to pay anything.

Council Tax Reduction in England, Scotland and Wales

Each local council has its own scheme. You can find details of your local  Council Tax Reduction scheme at GOV.UKOpens in a new window

Make sure you apply as soon as you can. Most councils won’t backdate payments unless you have a good reason for not applying straightaway.

Rate Rebate in Northern Ireland

Once you’ve received your first Universal Credit payment, you can apply for Rate Rebate at nidirectOpens in a new window

Set a reminder to apply as soon as you can. If you claim within three months of your first payment date, your Rate Rebate might be backdated.

It’s worth checking if you can get cheaper energy bills by switching supplier or tariff (the deal you’re on).

You can compare energy deals using comparison sites, like:

• Which?Opens in a new window
• MoneySavingExpert’s Cheap Energy ClubOpens in a new window

It’s usually cheaper to pay by monthly Direct Debit, rather than cash or cheque.

It’s also worth checking if you qualify for these schemes:

• Warm Home DiscountOpens in a new window in England, Scotland and Wales – £150 discount on your winter electricity bills.
• Affordable Warmth SchemeOpens in a new window in Northern Ireland – a grant that might help if you rent from a private landlord or own your home.
• Cold Weather PaymentOpens in a new window in England, Northern Ireland and Wales – an automatic £25 each time the temperate drops to zero degrees or less for seven days, usually between November and March.
• Winter Heating PaymentOpens in a new window in Scotland – an automatic fixed payment if you’re getting Universal Credit during a week in November.

You might also be able to get help paying for energy saving improvementsOpens in a new window, like replacing your boiler and adding insulation.

If you live in England or Wales, it’s worth checking if you can save by switching to a free water meter. This means you’ll pay for the water you use, rather than an estimate.

You might also qualify for your water company’s social tariffOpens in a new window, which could give you a large discount (often 15% to 90%) or means you won’t pay more than a fixed amount each year.

Some will let you apply now if you have a low income, but you might have to wait until you’ve received your first Universal Credit payment for others.

If you’re not sure who your supplier is, you can use Water UK’s find your supplier toolOpens in a new window first.

In Scotland you’ll usually pay for water as part of your Council Tax, or already be on a meter, and in Northern Ireland there are no domestic water charges.

If your contract has ended, you can often make large savings by switching to a cheaper deal.

It’s also worth making sure you don’t pay for high-speed internet you don’t need or mobile data, minutes and texts you won’t use.

To compare deals, try comparison sites like:

• one of Ofcom’s recommended broadband comparison sitesOpens in a new window
• MoneySavingExpert's cheap mobile finder Opens in a new window
• the Which? mobile comparison toolOpens in a new window

Before signing up, check if one of these social tariffsOpens in a new window could beat your best deal. You’ll usually need to wait until you’ve received your first Universal Credit payment to qualify, but it could save you in the long run.

For more help and information, see our guides:

• How to reduce your home phone and internet bill
• How to save money on your mobile phone

Get free broadband if you’re looking for work

If you’re a jobseeker, you might be able to get six months of free TalkTalk fibre broadband. Ask your work coach if you can apply for a voucher.

There’s no contract or credit check, so you can choose to cancel or start to pay TalkTalk when the six months ends.

Car insurance is a legal requirement if you drive a car and home insurance protects your belongings.

There are two types of home insurance:

• contents insurance covers items and fixtures inside your home, and
• buildings insurance covers the structure, like walls and roof – you don’t need this if you rent.

To cut costs, always check if you could save by switching insurers. Never just accept the renewal price without comparing other options.

MoneySavingExpert lists the order of the cheapest comparison sites to use for: 

• car insurance Opens in a new window
• home insurance Opens in a new window

Also see our guide How to find the best deal on your insurance using price comparison sites.

If you rent from your council, local authority or housing association, check if they offer a discounted home contents insurance policy. Find out more in our guide Contents insurance if you rent and have a low income. 

You might qualify for an extra £81.90 a week (2024/25) if:

• you’re an unpaid carer for at least 35 hours a week
• you’re aged 16 or over, not in full-time education
• you get paid less than £151 a week in 2024/25 after tax and National Insurance. This will rise to the weekly equivalent of 16 hours at the National Living Wage from April 2025 - this means you can earn £195.36 a week, and around £10,000 a year
• the person you care for claims certain disability or illness benefitsOpens in a new window
  

This is called Carer’s Allowance. In Scotland, it’s known as the Carer Support Payment and includes two extra payments each year, called Carer’s Allowance SupplementOpens in a new window

But claiming Carer’s Allowance can affect how much Universal Credit you get, as it’s counted as income. It might also impact the benefits of the person you’re caring for. For example, their Severe Disability Premium might stop.

It’s worth speaking to a benefits specialist before claiming. You can use AdvicelocalOpens in a new window to find organisations that can help.

How to apply depends on where you live.

• In England and Wales, apply at GOV.UKOpens in a new window
• In Scotland, apply at Social Security ScotlandOpens in a new window
• In Northern Ireland, apply at nidirectOpens in a new window

A carer’s assessment looks at the support you might need and decides the help you’re entitled to. For example:

• providing care so you can take short breaks
• help with your own housework, laundry, grocery shopping or gardening
• providing specialist equipment or home alterations to make life easier
• supporting you emotionally, like counselling or someone to talk regularly
• giving access to exercise, learning opportunities or social activities
• having someone to speak on your behalf.

Many of these services are provided for free by social services. If not, you might qualify for financial support.

You can ask for a free carer’s assessment if you’re 18 or over. If the person you care for lives in England, Scotland or Wales, contact their local councilOpens in a new window (adult social services department). In Northern Ireland, contact their Health and Social Care trustOpens in a new window

There are lots of grants and charities that offer help to people caring for someone who is ill or disabled.

You can use the Turn2Us grants searchOpens in a new window to check if you qualify and apply.