Universal Credit: Loans

Department for Work and Pensions written question – answered on 26th February 2018.

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Photo of Roger Godsiff Roger Godsiff Labour, Birmingham, Hall Green

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential merits of introducing a national interest-free credit scheme to provide universal credit claimants with short-term loans to obtain household essentials.

Photo of Alok Sharma Alok Sharma The Minister of State, Department for Work and Pensions

DWP already has a well-established system of interest-free support available for people in need. Advances are available, where claimants can receive up to 100% of their indicative award at the start of their claim. Budgeting advances, which are designed to cover unexpected household expenses, are also available for claimants who have been in receipt of Universal Credit for six months.

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