How to apply for a budgeting loan
A budgeting loan is an interest free loan from the Department of Work and Pensions (DWP).
It could help with extra costs if you or your partner must have been claiming any of these benefits for at 6 months:
income support
income based jobseeker's allowance
income related employment and support allowance
pension credit
If you claim universal credit
You can't apply for a budgeting loan if you claim universal credit.
You can ask for a budgeting advance instead.
DWP loans must be paid back.
This means you will have less money each month until the loan or advance is repaid.
Check if you can get an emergency grant or money help before asking for a DWP loan.
What you can claim for
You can get a budgeting loan to help pay for:
furniture or household items such as washing machines
clothes
rent in advance
moving home
maintenance, improvements or security for your home
maternity costs
funeral costs
repaying loans you already owe for items that you could get a budgeting loan for
You don't pay interest on budgeting loans.
How much you could get
The minimum loan you can apply for is £100.
You can be loaned up to:
£348 if you’re single
£464 if you have a partner
£812 if you or your partner claim child benefit
How to apply
You can also apply using form SF500.
How you pay back the loan
Repayments are deducted from your benefit payments.
Ask for repayments be spread over a longer period if repayments cause you hardship.
The loan must be fully repaid within 2 years.
You must pay back what you owe if you stop getting benefits. Ask to pay in instalments if you can’t afford a lump sum.
What to do if you are turned down
You can make a written request for a review if your application is turned down or you get less than you need.
Explain why you think the decision is wrong.
You must do this within 4 weeks of getting the decision letter.
Call the DWP social fund on 0800 169 0140 if you're not sure where to send your review request.
If you need more help
A benefits adviser may be able to:
explain the forms and help you work out how much to ask for
suggest other sources of funding
help you ask for a review of a decision you don't agree with
Contact Citizens Advice for benefits help and information.
Last updated: 8 November 2018
