Budgeting Loan: how much you can get and how to apply
A Budgeting Loan is an interest-free loan from the government. It helps people on certain benefits pay for essential one-off costs, such as furniture, clothes or moving expenses. You pay it back from your benefits, and you never pay more than you borrow.
If you claim Universal Credit, you cannot get a Budgeting Loan. You apply for a Budgeting Advance instead. This guide covers both.
Key facts
- It is interest-free. You repay only what you borrow.
- The lowest amount is £100. The most is £812.
- You repay it within 2 years, taken automatically from your benefits.
- It is for one-off essential costs, not regular bills.
- Universal Credit claimants use a Budgeting Advance instead.
How much can you borrow?
The lowest Budgeting Loan is £100. The most you can borrow depends on your situation:
| Your situation | Maximum loan |
|---|---|
| Single, no children | £348 |
| Couple, no children | £464 |
| You get Child Benefit (have children) | £812 |
The actual amount offered depends on whether you can afford the repayments and on any savings. Savings over £1,000 (or £2,000 if you or your partner are 63 or over) will reduce the amount you can get.
Who can apply for a Budgeting Loan?
To apply, you must have been getting one of these benefits for the past 6 months:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Pension Credit
You also cannot apply if you owe more than £1,500 in total for Crisis Loans and Budgeting Loans.
If you get Universal Credit, you cannot get a Budgeting Loan. See the Budgeting Advance section below. If you are not sure which benefits you are on, check our guides to Universal Credit and Jobseeker’s Allowance.
On Universal Credit? Apply for a Budgeting Advance instead
A Budgeting Advance does the same job as a Budgeting Loan, but it is for people on Universal Credit. The amounts are the same: from £100 up to £348 (single), £464 (couple) or £812 (with children).
To get a Budgeting Advance you usually need to:
- have been getting Universal Credit, or certain other benefits, for the past 6 months (unless the money is to help you start or keep a job)
- have earned under a set amount over the last 6 months
- have paid off any previous Budgeting Advance
You repay a Budgeting Advance through deductions from your future Universal Credit payments. Check the current earnings limit and repayment period on MoneyHelper before you apply, as these can change. To apply, sign in to your Universal Credit account or speak to your work coach.
What can you use a Budgeting Loan for?
A Budgeting Loan is for one-off essential costs, including:
- Furniture and household items, such as a fridge, washing machine or bed
- Clothing and footwear
- Rent in advance or removal costs when moving home
- Home repairs, improvements or security, such as locks or heating repairs
- Travel costs, or tools and equipment for work or training
- Maternity or funeral costs
It is not meant for regular bills or day-to-day living costs. If you are struggling with ongoing costs, a hardship payment or free debt advice may suit you better.
How to apply for a Budgeting Loan online
- Apply online on GOV.UK, or fill in form SF500. You can get the form from your local Jobcentre.
- Give your details, the benefit you receive, how long you have had it, your income, your savings, and what you need the loan for.
- Submit your application. Keep a copy and any reference number.
- A decision-maker checks that you qualify and that the repayments are affordable.
- If you are approved, you get a letter with the amount, your repayments, and when they start. You agree before any money is paid.
Applying online is usually the quickest way. You can find your nearest office in our Jobcentre directory if you need the SF500 form or help applying.
How repayments work
- You repay the loan within 2 years (104 weeks).
- Repayments are taken automatically from your benefit payments, so you do not set up a direct debit.
- The weekly amount is based on what you can afford.
- It stays interest-free, so you only pay back what you borrowed.
- If your benefit stops, DWP Debt Management writes to you to arrange repayment. The loan does not disappear.
If repayments become hard to manage, ask for a lower amount over a longer period. Do this early, before any arrears build up.
How to contact DWP about a Budgeting Loan
How you get in touch depends on what you need:
- To apply or ask about eligibility: use your local Jobcentre Plus. Find it in our Jobcentre directory.
- To ask how much you still owe, or about repayments: contact DWP Debt Management. The current phone number is on GOV.UK.
Budgeting Loans and the Social Fund
A Budgeting Loan is the main loan from the Social Fund. People often search for a “Social Fund loan” when they mean a Budgeting Loan or Budgeting Advance. For the wider picture, including grants and other help, see our guide to the Social Fund loan.
If you cannot get a Budgeting Loan
If you do not qualify, or you need more help, these options may suit you:
- Your local council’s welfare assistance or local welfare scheme
- Charity grants, which you can search for on Turn2us
- Free debt advice from MoneyHelper or Citizens Advice
- A hardship payment if your benefit has been reduced or sanctioned
Avoid payday loans and doorstep lenders. They cost far more than a Budgeting Loan or these alternatives.
Frequently asked questions
How much can I get from a Budgeting Loan?
From £100 up to £348 if you are single, £464 for a couple, or £812 if you get Child Benefit. The exact amount depends on what you can afford to repay and on any savings.
Can I get a Budgeting Loan on Universal Credit?
No. If you get Universal Credit you apply for a Budgeting Advance instead. The amounts are the same and you repay it from your Universal Credit.
Is a Budgeting Loan interest-free?
Yes. You only pay back what you borrow. There is no interest and no fees.
How long do I have to repay it?
Up to 2 years (104 weeks). Repayments come straight out of your benefit payments.
Does a Budgeting Loan show on my credit file?
No. It is run through the benefits system and does not appear as standard credit. You still owe the money and must repay it.
How do I find out how much I owe?
Contact DWP Debt Management. You can find the current phone number on GOV.UK.
Can I have two Budgeting Loans at once?
No. You can only have one at a time. You usually cannot get another until the first is repaid.