What can I do if my advance UC repayment is too high?

If you’ve taken an Universal Credit (UC) advance and find the repayments are biting hard each month, you’re not alone. Many people face UC advance repayment problems when deductions reduce too much of their benefit and leave them struggling with day-to-day costs. This article explains how UC advance repayments work, what to do if you can’t afford UC deductions, as well as how to ask for a pause or reduction.

How UC advance repayments work

When you claim Universal Credit, there’s typically a delay before your first full payment – usually around five weeks. 

To help bridge that gap, the Department for Work and Pensions (DWP) lets you request an advance payment. This is technically a loan, interest-free, which must be paid back via future UC payments. 

Here’s how the repayment process generally works:

• The DWP will automatically deduct part of your UC payment to repay the advance. 
• You’ll typically have up to 24 months to repay (for an advance at the start of your claim).
• The deductions often start from your first UC payment. 
• The maximum portion of UC that can be taken for deductions (for advances and other debts) is capped, so not all of your benefit can be swallowed up. 
• If you already receive UC and your payment is due to rise (for example from a change in circumstances), you may also request an advance to cover the increased amount. 

In some cases, you may take a budgeting advance instead, but that has a slightly different repayment schedule and rules. 

Although the system is designed to help, for many the repayments feel steep, especially when essential living costs remain. That’s when UC advance repayment problems arise.

When deductions become a problem

You may find that the advance repayment deductions leave you with too little for essentials. If you feel you can’t afford UC deductions, take action early. Common signs:

• You struggle to pay for food, rent, utilities
• You fall behind on other bills
• You find yourself borrowing again just to make ends meet.

Since UC deductions for advances are considered a priority, they may come before other types of deductions (e.g. council tax arrears) in some cases. 

If your overall deductions are pushing you into hardship, you can ask for the advance repayments to be slowed or paused temporarily. 

How to reduce or pause UC advance repayments

If you’re being squeezed by deductions, here’s what you can do to ease the burden:

1. Contact your work coach or update your UC journal

You can request a delay in deductions by leaving a message saying that you can’t afford the repayments. For example, you could say:

I am finding it very hard to repay my UC advance. I can’t afford food or to pay my bills at the moment. Please could you pause the deductions for 3 months.

2. Ask for a repayment holiday or extension

For advances taken at the start of a UC claim, you may be able to delay repayments for up to 3 months. For advances taken after a change in circumstances, a pause may be possible for one month. In emergencies, the DWP may be more flexible.

3. Ask to extend the repayment period

If your deductions are too large, you can request the repayment term be stretched. This spreads the cost over more months and lowers each monthly deduction. 

4. Provide evidence of hardship

When you ask for the pause or change, explain firmly why you can’t afford the current deductions. For example, unexpected bills, loss of income, or rising essential costs.

5. Consider alternative support

If adjusting the advance repayment isn’t enough, look at additional options like:

• A Debt Management Plan (DMP) to wrap together debts and lower monthly payments
• Explore whether certain deductions are negotiable or lower priority
• Ensure you’re claiming all benefits you’re entitled to 
• If you have multiple debts, see how UC deductions interact with other payments.

If you prefer, a debt adviser can help you negotiate and find a sustainable approach.

What to do if you’re refused or ignored

If your request to reduce or pause deductions is refused:

• Ask the DWP to reconsider the decision
• Keep records of all correspondence
• Seek support from a benefits adviser or debt adviser
• Use formal complaints or escalate through DWP channels.

You might also want help on budgeting while on UC or how to manage multiple deductions from your benefit. 

Next steps

Struggling with UC advance repayment problems can be stressful. But if the deductions are leaving you unable to afford essentials, you have options. You can also get free, impartial advice from MoneyHelper.

If you want help working out what you can afford, or how your advance repayments interfere with your other debts, contact us at MoneyPlus. We can review your full financial situation and suggest the best route forward.