UK £812 Cost of Living Payment – Who Qualifies & How to Apply

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UK £812 Cost of Living Payment: The UK government offers financial assistance to individuals facing increased living costs. One such support is the £812 Cost of Living Payment, which is part of the Budgeting Advance scheme. This guide provides an overview of who qualifies for this payment and how to apply.

What Is the £812 Cost of Living Payment?

The £812 Cost of Living Payment is a one-time, interest-free loan available through the Budgeting Advance scheme. It’s designed to help individuals and families manage unexpected expenses, such as replacing essential household items or covering costs associated with starting or maintaining employment.

Who Is Eligible for the £812 Payment?

To qualify for the £812 payment, applicants must meet specific criteria:

• Benefit Receipt: You must have been receiving Universal Credit, Employment and Support Allowance, Income Support, Jobseeker’s Allowance, or Pension Credit for at least six months. Alternatively, you can apply if you need the money to help you start a new job or stay in work.
• Income Threshold: Your earnings should not exceed £2,600 in the past six months (£3,600 for couples).
• Previous Loans: You should not have any outstanding Budgeting Advances or Crisis Loans.
• Savings Limit: Your savings must be under £1,000 (£2,000 if you’re 63 or older).
• Child Benefit: You or your partner must be receiving Child Benefit.

How Much Can You Borrow?

The amount you can borrow depends on your circumstances:

• Single Applicant: Up to £348.
• Couple: Up to £464.
• Applicant with Children: Up to £812.

The exact amount is determined based on your ability to repay and any existing debts.

How to Apply for the £812 Payment

Applying for the £812 Cost of Living Payment involves the following steps:

1. Online Application: Log into your Universal Credit online account and update your journal to request a Budgeting Advance.
2. Contacting Your Work Coach: Speak with your work coach at your local Jobcentre for guidance and to initiate the application process.
3. Phone Application: Call the Universal Credit helpline at 0800 328 5644 for assistance.

Repayment Terms

The repayment of the Budgeting Advance is structured as follows:

• Repayment Period: Typically, repayments are deducted from your Universal Credit payments over 24 months.
• Amount Deducted: The deduction amount is based on your monthly Universal Credit payment and the loan amount.
• Early Repayment: You can repay the loan early without incurring any penalties.
• Missed Payments: If you miss a payment, contact the Universal Credit helpline to discuss your options.

Important Considerations

Before applying, consider the following:

• Loan Nature: The £812 payment is a loan, not a grant, and must be repaid.
• Eligibility Check: Ensure you meet all eligibility criteria to avoid delays in processing.
• Financial Planning: Assess your ability to repay the loan within the specified period.

Additional Support

If you’re struggling financially, other forms of support may be available:

• Alternative Payment Arrangements: If you’re behind on rent, you might be eligible for direct payments to your landlord.
• Discretionary Support: Some local councils offer discretionary support schemes for individuals in exceptional need.
• Council Tax Support: Separate from Universal Credit, you may qualify for assistance with your council tax payments.

Conclusion

The £812 Cost of Living Payment can provide essential financial relief for those facing unexpected expenses. By understanding the eligibility requirements and application process, you can access this support to help manage your living costs. Always ensure you can meet the repayment terms before applying to maintain your financial stability.