PART 3Budgeting advances
Payment of budgeting advances11
1
The Secretary of State may make a payment on account of universal credit to a person (“B”) in accordance with this Part.
2
A payment under this Part is to be known as a budgeting advance.
Conditions for payment of budgeting advances12
1
The Secretary of State may make a budgeting advance to B for the purpose of defraying an intermittent expense of B if—
a
B makes an application to the Secretary of State for a budgeting advance;
b
B, or in a case where B is a member of a couple, B or their partner, is in receipt of universal credit;
c
except where paragraph (2) applies, B or, in a case where B is a member of a couple, B or their partner, has been in receipt of benefit for a continuous period of at least 6 months on the date of the application for a budgeting advance;
d
the earnings condition in regulation 13 is satisfied; and
e
the recovery condition in regulation 14 is satisfied.
2
This paragraph applies where the intermittent expense to be defrayed is necessarily related to B or, in a case where B is a member of a couple, their partner, obtaining or retaining employment.
3
For the purposes of paragraph (1)(c), “benefit” means—
a
universal credit;
b
employment and support allowance;
c
income support;
d
jobseeker's allowance; or
e
state pension credit.
4
For the purposes of paragraph (3)—
a
“employment and support allowance” means an income-related allowance under Part 1 of the 2007 Act as it has effect apart from the amendments made by Schedule 3, and Part 1 of Schedule 14, to the 2012 Act (to remove references to an income-related allowance);
b
“jobseeker's allowance” means an income-based jobseeker's allowance under the 1995 Act as it has effect apart from the amendments made by Part 1 of Schedule 14 to the 2012 Act (to remove references to an income-based allowance).
Earnings condition13
1
The earnings condition is satisfied where—
a
if B is not a member of a couple, B does not have earned income exceeding £2,600 over the relevant period;
b
if B is a member of a couple, B and their partner jointly do not have earned income exceeding £3,600 over the relevant period.
2
In paragraph (1), “the relevant period” is the period of six months preceding the date of the application for the budgeting advance.
3
Earned income is to be calculated for the purpose of paragraph (1) by calculating monthly earned income in accordance with Chapter 2 of Part 6 of the Universal Credit Regulations and then multiplying that amount by 6.
Recovery condition14
The recovery condition is satisfied where—
a
no amount in respect of any budgeting advance previously paid to B or, if B is a member of a couple, B or their partner, remains to be recovered by the Secretary of State; and
b
taking into account all debts and other liabilities of B or, if B is a member of a couple, of B and their partner, the Secretary of State is satisfied that the budgeting advance can reasonably be expected to be recovered.
Minimum and maximum amounts payable by way of budgeting advance15
1
The minimum amount payable by way of budgeting advance is £100.
2
Subject to regulation 16(2), the maximum amount payable by way of budgeting advance is—
a
where B is neither a member of a couple nor responsible for any child or qualifying young person, £348;
b
where B is a member of a couple but is not responsible for any child or qualifying young person, £464;
c
where B is responsible for any child or qualifying young person, £812.
Treatment of capital16
1
Where the total of B's capital or, in a case where B is a member of a couple, the total of B's and their partner's capital, exceeds £1,000, the amount of any budgeting advance which may otherwise be paid must be reduced by the amount by which that capital exceeds £1,000.
2
No budgeting advance is payable where, as a result of paragraph (1), the amount of any budgeting advance which would otherwise be payable is reduced to less than £100.
3
Capital is to be calculated for the purposes of paragraph (1) in accordance with Chapter 1 of Part 6 of the Universal Credit Regulations.
Requirement for notice17
1
The Secretary of State must, on or before making a budgeting advance to B, give or send notice in writing to B of their liability—
a
to have the amount of the budgeting advance deducted from subsequent payments of universal credit; and
b
to repay the amount of the budgeting advance to the extent that it is not deducted from subsequent payments of universal credit.
2
Where B is a member of a couple, notice in writing must also be given or sent to their partner containing the information referred to in paragraph (1)(a) and (b).
Payment by direct credit transfer18
A budgeting advance may be paid by way of direct credit transfer into a bank account or other account—
a
in the name of B or their partner or a person acting on B's behalf; or
b
in the joint names of B and their partner, or B and a person acting on B's behalf.