As households across the UK continue to feel financial strain, the £812 figure has surfaced frequently—but is it a new cost-of-living grant?
This article unpacks the truth behind the number, explains what it actually signifies, who can benefit, how you can apply, and what other support measures are available.
We’ll break everything down clearly, so you know exactly how to proceed this August 2025.
What Is the £812 Amount?
Contrary to some headlines, £812 is not a new lump-sum grant for living expenses. Instead, it represents the maximum amount available via the Universal Credit (UC) Budgeting Advance—an interest-free loan to help with essential, unexpected costs .
- Budgeting Advance:
- Up to £348 if you are single without children.
- Up to £464 if you are part of a couple.
- Up to £812 if you have children .
This support can help bridge temporary financial gaps—but it must be repaid from your future Universal Credit payments.
Eligibility Criteria
To apply for the £812 Budgeting Advance, you must meet all of the following:
- Be receiving Universal Credit.
- Have a genuine need for essential costs (e.g., household bills, work-related expenses, travel to work).
- Be able to repay the advance through deductions from future Universal Credit payments.
- The application must be for new Universal Credit claims on or after 12 April 2021 (for repayment terms to apply) .
Repayment Terms
Here’s how the loan is repaid:
- If you applied on or after 12 April 2021, you have up to 24 months to repay the advance .
- Thanks to the Fair Repayment Rate introduced on 30 April 2025, Universal Credit deductions are capped at 15% of your standard allowance—down from 25% .
August 2025 Context & Other Support Updates
While no £812 cost-of-living payment exists, other updates we know of in August 2025 include:
- No additional Cost of Living Payments are expected in August 2025; the last such £299 payment has already been issued .
- The Universal Credit payment dates were adjusted for the August 2025 bank holiday period—but no change in payment amounts .
- General benefit uprating (e.g., Universal Credit, ESA, State Pension) reflects announcements: a 1.7% increase for main benefits and a 4.1% boost to the State Pension .
Quick Reference Table
| Aspect | Details |
|---|---|
| What is £812? | Maximum Budgeting Advance for claimants with children |
| Eligibility Requirements | Receiving UC, essential need, ability to repay, new claim post-April 2021 |
| Application Purpose | To cover emergency or essential costs |
| Repayment Period | Up to 24 months (if claim from 12 April 2021 onward) |
| Maximum Deduction Cap | 15% of UC standard allowance (as of 30 April 2025) |
| Other Support in August 2025 | No new one-off payment; benefit increases applied; adjusted payment dates |
How to Apply: Step by Step
- Log in to your Universal Credit account.
- Navigate to ”Budgeting Advance” or similar.
- Complete the application form, stating exactly what essentials you need help with.
- Submit the form as soon as you need the funds.
- Once approved, the advance will be added to your usual UC payment.
- The system will automatically deduct repayments—up to 15% of your standard monthly allowance, for up to 24 months.
Important Considerations
- This is a loan, not a grant—meaning it must be repaid.
- The £812 cap applies only to households with children.
- The 15% deduction cap helps protect your monthly Universal Credit income from excessive repayment pressure (down from 25%).
- You can still access other support like the Household Support Fund, local schemes, or charitable assistance—depending on your area and situation.
If you’ve heard mention of a £812 cost-of-living payment in August 2025, that’s inaccurate.
What it actually refers to is the maximum Universal Credit Budgeting Advance available for households with children.
Remember:
- It’s a loan, not free aid—repayable over up to 24 months with deductions capped at 15% of your allowance.
- You may be eligible if you receive Universal Credit and need help with an essential cost.
- No extra cost-of-living grants are planned, but benefit rate increases and adjusted payment schedules are in effect.
Frequently Asked Questions
1. Is the £812 payment a grant I don’t have to pay back?
No. The £812 is a Budgeting Advance loan under Universal Credit. You must repay it from future UC payments, deducted at a maximum rate of 15% per month over up to 24 months.
2. Am I eligible for the £812 Budgeting Advance?
You may be if:
- You currently receive Universal Credit,
- You have a child or children,
- You need the funds for essential or emergency costs, and
- You can repay it out of future UC payments.
3. What other financial support is available in August 2025?
There are no new one-off £812 cost-of-living payments planned. Regular benefits, including Universal Credit, ESA, Income Support, and State Pension, have been uprated (about 1.7% for most, 4.1% for the State Pension).
Payment dates may change around bank holidays, so check your UC schedule.