How to get Universal Credit Loophole $1,500?

You can apply for an advance payment in your online account or through your Jobcentre Plus work coach. You will need to: explain why you need an advance. verify your identity (you do this when you apply online or on the phone with a work coach)

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The Department of Work and Pensions has issued a warning to benefit claimants who may be trying to exploit a Universal Credit £1,500 cash boost loophole. Some families looking for extra cash during the coronavirus pandemic have been able to obtain advance payments of £1,500 on up to three separate occasions. A glitch in the application process enabled people to get several of these Universal Credit loans even though they were not entitled to the money. Claimants were usually trying to find a source of extra cash and were approached by fraudsters posing as jobcentre staff or personal loan advisors. In return for helping them put in false information, the scammers took a cut of £500 a time from the advance payments of £1,500. The loophole led to a flurry of phoney claims for advance payments and was widely shared on social media. There has recently been renewed interest in trying to find ways of getting extra money, possibly due to the financial pressures of the coronavirus pandemic. A DWP spokesperson told Birmingham Live: "The vast majority of claims to Universal Credit are legitimate and fraud and error in the benefits system remains very low with 96.5 per cent of benefits paid correctly. "We continue to monitor and investigate emerging fraud threats and pursue those seeking to rip off the taxpayer using the full range of our powers, including prosecuting and tough financial penalties." The DWP says it now has dedicated teams to investigate specific types of fraud. To reduce the risks, DWP has established an Enhanced Checking Service, comprising 600 trained fraud investigators. It means benefit processing staff refer any suspicious cases for further investigation and additional verification. This service has made in-roads into combatting any potential abuse of the system, the DWP said. The department also works with online sites to shut down posts which promote fraud.

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And it uses social media to raise awareness of fraud and remind people of the importance of safeguarding their identity. The DWP previously confirmed to Birmingham Live that it had introduced measures to target widespread benefit fraud across the UK. An advance loans scam is believed to have totalled £20 million, with as many as 10,000 cases happening every month. DWP staff said money was pouring out at £1,500 a time "like lottery jackpots", with many of the claims using obviously fake names.

How to legitimately get extra cash on top of Universal Credit

The DWP runs a number of schemes for benefit claimants needing additional money. In addition, a number of extra payments are available in specific circumstances, with top-ups of up to £405 from this October to replace the old Severe Disability Premium. Claimants who used to get SDP will see their Universal Credit payments increased by £120, £285 or £405, if they are eligible. Other boosts are available for those who are self-isolating in Covid hotspots or who have been told to self-isolate by NHS Test and Trace. But there is also more general financial help available - here's what you can ask for: You can apply for an advance payment in your online account or through your Jobcentre Plus work coach.

You will need to:

explain why you need an advance

verify your identity (you do this when you apply online or on the phone with a work coach) provide bank account details for the advance (talk to your work coach if you cannot open an account) You must pay the money back within 12 months via deductions from your Universal Credit payments. It's also possible to get an advance if you are already being paid Universal Credit and have told the DWP of a change in your circumstances that means you are due to receive more money, but have not yet been paid the increased amount.

emergency household costs such as replacing a broken cooker

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getting a job or staying in work

funeral costs

The smallest amount you can borrow is £100. You can get up to:

£348 if you’re single

£464 if you’re part of a couple

£812 if you have children

How much you can get depends on whether you:

can pay the loan back

have any savings over £1,000 (the DWP will reduce the loan offer to you by £1 for every £1 you have in savings over the £1000 threshold) been getting Universal Credit, income-related Employment and Support Allowance, Income Support, income- related Jobseeker’s Allowance or State Pension Credit for 6 months or more, unless you need the money to help you start a new job or keep an existing job earned less than £2,600 (£3,600 jointly for couples) in the past 6 months Look for jobs vacancies in your area by typing your postcode into the box below:

3. Budgeting Loan

Those on benefits can also ask about a Budgeting Loan but this is not a scheme available to those on Universal Credit. To get a Budgeting Loan you must have been getting one or more of these benefits for the past six months: