Universal Credit Christmas loan: Eligibility and how does it work?

Wwith costs rising across the UK and with the £ 20 Universal Credit with the uprising ending in October, many British families are struggling financially as Christmas approaches. Fortunately, there is good news as it may be possible to qualify for a Universal Credit Christmas loan.

Here, we outline all the details you need to know about Universal Credit Prepayments in November.

Who can claim a Universal Credit Christmas loan?

These advance payments are for people who are waiting for their first Universal Credit payment or for those who are expected to earn a higher Universal Credit amount but still only receive the lower amount.

People in such a situation can request up to 100 percent of their estimated Universal Credit payment to be paid now, although it is also possible to request a lower percentage.

What is the amount of the Noël Crédit Universel loan?

The exact amount depends on each applicant and their choice to borrow 100 percent in full. There is also a hard limit as the maximum amount applicants can borrow is 1000 pounds.

The good thing, however, is that these loans are organized by the Department of Work and Pensions (DWP) and they are interest free loans, which means that there will be no additional fees for refund the money.

The money will be repaid over time, provided it is repaid within 24 months. For example, a person borrowing the entire 1000 pounds in November would then have 41.67 pounds withdrawn from their Universal Credit payment each month for the next 24 months.

If you end up no longer eligible for Universal Credit, you will still have to repay that loan and make those payments directly to DWP.

When will the Universal Credit Christmas loan arrive in your bank account?

About three days after a successful request, the money should already be paid by the DWP.

The full amount of the deposit is paid in one go, which means that it is important to budget well as no further payment will be possible before the first of the regular Universal Credit payments, which can take up to five weeks.