The Department for Work and Pensions (DWP) now offers a one‑off interest‑free loan of up to £812—known as a Budgeting Advance or Budgeting Loan—to households facing sudden costs.
This vital financial tool can help with household items, travel, or other urgent expenses without the burden of interest. Here’s everything you need to know.
What’s Available — Loan Amounts
| Household Type | Maximum Loan Available |
|---|---|
| Single claimant | £348 |
| Couple without children | £464 |
| Family where claimant or partner gets Child Benefit | £812 |
The minimum you can borrow is £100.
Who Is Eligible?
- Must have received Income Support, income‑based Jobseeker’s Allowance, income‑related Employment and Support Allowance, or Pension Credit for at least six continuous months.
- Not eligible if you’re on Universal Credit, New Style JSA, or ESA—instead, those should apply for a Budgeting Advance.
- Applicants must have savings under £1,000 (or under £2,000 if over 63). Any savings above this reduce the loan amount pound for pound.
- You cannot apply if you’re already repaying a previous Budgeting Loan.
How It Works
- This is a loan, not a grant, meaning it must be repaid—but it’s interest‑free, making it safer than traditional credit.
- Applications can be made via the Universal Credit online journal, Jobcentre, or the helpline.
- Decisions are often made the same day, acknowledging the urgent nature of these applications.
Repayment Details
| Loan Amount | Repayment Period |
|---|---|
| Any loan amount | Typically up to 24 months |
- Repayments are automatically deducted from benefits (e.g., Universal Credit).
- New loans from December 2024 onward have longer repayment periods—up to 24 months rather than just 12 months.
Why This Matters
- Offers swift financial relief for unexpected costs like broken appliances, travel for job interviews, or emergency household needs.
- Provides a responsible, interest-free alternative to high-cost loans or credit.
- Designed to be accessible for extremely low-income households, without burdening them further.
The DWP Budgeting Loan offers crucial, interest-free support—up to £812—for eligible households on legacy benefits facing one-time costs.
The application is swift, repayment is fair and flexible, and the process offers genuine help without additional financial strain. If you’re eligible, acting promptly can provide timely assistance when you need it most.
FAQs
Can someone on Universal Credit apply for this £812 Budgeting Loan?
No—Universal Credit claimants cannot apply for the Budgeting Loan; they must apply for a Budgeting Advance instead.
What happens if I have £1,200 in savings?
If you have £1,200 in savings, your loan will be reduced by £200—leaving you eligible for a lower amount.
How long do I have to repay the loan?
New loans (from December 2024) are repaid over up to 24 months, with deductions made automatically from your benefits.
