It’s a daunting and stressful situation when you find yourself thinking, “I Have No Money And Need Help.” You’re not alone, and understanding the available support is the first step towards regaining control. This guide, brought to you by money-central.com, your trusted resource for financial expertise, breaks down practical steps and resources to help you navigate this challenging time.
Understanding Government Support and Benefits
The UK government offers various forms of financial assistance to those in need. It’s crucial to check if you’re receiving all the benefits you’re entitled to, as many people miss out on crucial support.
Maximizing Your Benefit Entitlements
Many individuals in the UK are unaware of the full spectrum of benefits and tax credits available to them, potentially missing out on significant financial aid. To ensure you’re receiving everything you’re eligible for, utilize a free benefits calculator. This tool can quickly assess your situation and highlight potential support you may be overlooking.
Use this free benefits calculator to check your entitlements
Budgeting Loans: Help for Unexpected Expenses
If you’re facing unexpected costs and receive certain benefits, you might be eligible for a Budgeting Loan. This government support is designed to assist with essential, unforeseen expenses when you’re on a low income. To qualify, you typically need to have been receiving one of the following benefits for at least 26 weeks:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Pension Credit
Budgeting Loans can be used for a range of necessities, including:
- Essential furniture and household appliances
- Moving costs if you need to relocate
- Maternity expenses to prepare for a new baby
- Travel costs for essential journeys
The loan amount you can apply for is dependent on your individual circumstances and ability to repay. Repayments are automatically deducted from your ongoing benefit payments, making it a manageable way to handle unexpected financial strain.
Hardship Payments: Emergency Support When Benefits are Sanctioned
Hardship Payments are a crucial safety net if you’ve faced benefit sanctions and are struggling to cover essential bills. These payments are available for individuals receiving:
- Universal Credit (UC)
- Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA)
If your benefits have been reduced or stopped due to a sanction, and you cannot afford essential living costs, applying for a Hardship Payment is vital.
Learn more about Hardship Payments and how to apply
Short-Term Benefit Advances: Bridging the Gap
When you’re waiting for your first benefit payment or facing delays, Short-Term Benefit Advances can provide immediate financial relief. This advance essentially pays a portion of your benefit early to help you manage until your regular payments begin or are adjusted.
You might be eligible for a short-term advance if:
- You need funds to cover living expenses while you wait for your initial benefit payment to be processed.
- You require immediate money while waiting for a benefit increase to come into effect.
- Your scheduled benefit payment is delayed and won’t arrive on time.
Repayments for benefit advances are typically deducted from your future benefit payments over a period of around 12 weeks, ensuring a manageable repayment schedule. Contact your local Jobcentre Plus to apply for most benefits and inquire about short-term advances.
Read our comprehensive guide to claiming benefits
Dealing with Debt and Creditors When You Have No Money
When you’re facing financial hardship, managing debt becomes even more critical. It’s important to know your options for dealing with creditors and prioritizing essential bills.
Payment Holidays: Temporary Relief from Debt Repayments
If you’re struggling to keep up with debt repayments, a payment holiday can offer temporary respite. You can request a payment holiday from various creditors, including those for:
- Mortgages
- Credit cards
- Loans
- Hire purchase agreements
It’s crucial to understand that payment holidays are not debt forgiveness. Missed payments are treated as arrears, and interest and charges may continue to accrue during the payment holiday period, potentially increasing the total amount you owe. However, it can provide crucial breathing room to reassess your finances and seek further help.
To request a payment holiday, use template letters to formally communicate with your creditors and clearly explain your situation.
Access template letters for contacting creditors
For personalized guidance and free debt advice, remember that expert help is available.
Contact us for free debt help and support
Breathing Space: Time to Get Your Finances in Order
The Breathing Space scheme, also known as the Debt Respite Scheme, offers legal protection from creditor action while you seek debt solutions. If you are eligible, Breathing Space provides up to 60 days of protection from:
- Creditor contact and harassment
- Accruing interest and fees on qualifying debts
- Court action related to your debts
Breathing Space is available in England and Wales. In Scotland, a similar scheme called the moratorium offers up to six months of protection.
Learn more about Breathing Space and eligibility requirements
Prioritizing Bills: Essential Payments First
When resources are limited, it’s essential to prioritize certain bills to avoid severe consequences. Priority bills are those where non-payment can lead to serious repercussions, such as eviction or legal action. These include:
- Council tax
- Rates (in Northern Ireland)
- Rent
- Mortgage payments
Ensuring these priority bills are paid first is crucial for maintaining your home and essential services.
Understand which debts to prioritize
Help with Utility Bills When Money is Tight
Struggling to afford essential utilities like energy and water is a common challenge when you have no money. Support is available to help manage these crucial expenses.
Managing Energy Arrears and Costs
If you’re falling behind on energy bills, contact your energy supplier immediately. They are obligated to discuss options for repayment and support. Energy arrears are considered priority debts, and suppliers have a responsibility to help you avoid disconnection.
Energy companies also offer social tariffs, which are reduced rates for low-income households and those needing extra support. These tariffs can provide significant savings. Furthermore, energy companies often have hardship funds and priority service registers to assist vulnerable customers.
If you use a pre-payment meter and are unable to top it up, some food banks may offer small top-ups to provide emergency credit, ensuring you have essential energy access.
Our guide to dealing with energy bills provides further information
The Energy Saving Trust offers valuable resources and tips for saving energy and finding financial assistance for energy costs.
Visit the Energy Saving Trust for energy-saving tips and support information
Support with Water Bills
Water suppliers also provide support schemes for customers on low incomes and benefits. The specific help available varies by supplier, so it’s important to contact your water company to explore available options and hardship schemes.
Find out more about support from water companies
Mortgage Help and Support
If you’re struggling to meet mortgage payments, contact your mortgage provider as soon as possible. Early communication is key to finding solutions and preventing further financial difficulty.
Mortgage providers can work with you to create a repayment plan for missed payments and may offer various forms of assistance, such as:
- Payment holidays (as discussed earlier)
- Switching to an interest-only mortgage temporarily to reduce monthly payments
- Extending the mortgage term to lower monthly repayments
- Assisted voluntary sale schemes in more severe circumstances
Government support for mortgage costs may also be available if you are receiving benefits.
Find detailed information about managing mortgage arrears
Conclusion: Taking Action When You Have No Money
Facing financial hardship and feeling like you have no money is incredibly challenging, but remember that help is available. By understanding the government support, debt management options, and utility assistance programs outlined in this guide, you can take proactive steps to address your situation. Don’t hesitate to reach out to the resources and organizations mentioned – taking action is the first step towards financial stability and peace of mind.
