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Interim payments and short-term advances
If your claim or payment of child benefit or guardian’s allowance is delayed, you can ask for an interim payment. If your claim for another benefit is delayed, you can ask for a short-term advance. The rules do not apply to tax credits, attendance allowance, disability living allowance, personal independence payment, statutory adoption pay, statutory paternity pay or statutory shared parental pay. See here for the rules about payments on account of housing benefit (HB).
An interim payment of child benefit or guardian’s allowance can be made if it seems you are, or may be, entitled to benefit and:
    there is a delay in your making a claim, including being able to satisfy the national insurance number requirement straight away; or
    you have claimed it but not in the correct way (eg, you have filled in the wrong form, or filled in the right form incorrectly or incompletely) and you cannot put in a correct claim immediately; or
    you have claimed correctly, but it is not possible for the claim, or for a revision or supersession request which relates to it, to be dealt with immediately; or
    you have been awarded benefit, but it is not possible to pay you immediately other than by means of an interim payment.
A short-term advance (for universal credit, a ‘universal credit advance’) can be made where there is a delay in dealing with your claim or paying your benefit and, because of the delay, you are in financial need. Financial need means that because you have not received your benefit, there is serious risk of damage to the health or safety of you or of your family.
You cannot appeal to the First-tier Tribunal if you are refused an interim payment or short-term advance. It may be possible to apply for judicial review (see here). You could contact your MP to see if s/he can help get the decision to refuse you an interim payment or short-term advance reconsidered.
An interim payment or short-term advance can be deducted from any later payment of benefit. If it is more than your actual entitlement, the overpayment can be recovered.
Payments on account of housing benefit
If you are a private or housing association tenant and the local authority has not been able to assess your HB within 14 days, you should receive an interim payment (known as a ‘payment on account’) while your claim is being sorted out.1Reg 93(1) HB Regs; reg 74(1) HB(SPC) Regs
Some local authorities treat interim payments as though they are discretionary. However, the local authority must pay you an amount which it considers reasonable, given what it knows about your circumstances.2paras A6/6.158 and 6.159 GM
Interim payments can only be refused if it is clear you will not be entitled to HB, or the reason for the delay is that you have been asked for information or evidence to support your claim and you have failed, without good cause, to provide it.3Reg 93(1) HB Regs; reg 74(1) HB(SPC) Regs; R v Haringey LBC ex parte Azad Ayub [1992] 25 HLR 566 (QBD)
If the delay has been caused by a third party (eg, the rent officer, your bank or employer), this does not affect your right to an interim payment. If your local authority has not made a payment on account, you should complain (see here).
If the local authority makes a payment on account, it should notify you of the amount and that it can recover any overpayment that occurs if your actual HB entitlement is less than the interim amount.
If your payment on account is less than your entitlement, your future HB can be adjusted to take account of the underpayment.4Reg 93(3) HB Regs; reg 74(3) HB(SPC) Regs
 
1     Reg 93(1) HB Regs; reg 74(1) HB(SPC) Regs »
2     paras A6/6.158 and 6.159 GM »
3     Reg 93(1) HB Regs; reg 74(1) HB(SPC) Regs; R v Haringey LBC ex parte Azad Ayub [1992] 25 HLR 566 (QBD) »
4     Reg 93(3) HB Regs; reg 74(3) HB(SPC) Regs »