A Budgeting Loan can help pay for: furniture or household items (for example, washing machines or other ‘white goods’) clothes or footwear rent in advance costs linked to moving house maintenance, improvements or security for your home travelling costs within the UK costs linked to getting a new job maternity costs funeral costs repaying hire purchase loans repaying loans taken for the above items Crisis Loans are not available any more. You may be eligible for a Budgeting Loan if you’ve been on certain benefits for 6 months. You only have to pay back the amount you borrow , and repayments are taken automatically from your benefits. This guide is also available in Welsh (Cymraeg) and Easy Read format .

Check if you're eligible

To get a Budgeting Loan you must have been getting one or more of these benefits for the past 6 months: Income Support income-based Jobseeker’s Allowance income-related Employment and Support Allowance Pension Credit If you moved from Universal Credit to Pension Credit, any time spent claiming Universal Credit will count towards the 6 months. There’s a different way to get a Budgeting Loan in Northern Ireland . When you cannot apply If you currently get Universal Credit, you cannot get a Budgeting Loan. Apply for a Budgeting Advance instead. You also cannot get a Budgeting Loan if: you get New Style Jobseeker’s Allowance or New Style Employment and Support Allowance you’re involved in industrial action (for example a strike, walkout or lockout) you owe more than £1,500 in total for Crisis Loans and Budgeting Loans

The lowest amount you can borrow is £100. You could get up to: £348 if you’re single £464 if you have a partner £812 if you or your partner claim Child Benefit How much you could get depends on whether you: can pay the loan back have savings of more than £1,000 (£2,000 if you or your partner are 63 or over) are paying back an existing Budgeting Loan or Crisis Loan How you’ll be paid Budgeting loans are paid into the same account as your benefit. If you want to be paid into a different account, either: change the account your benefit is paid into before you apply apply using the paper form (this takes longer than applying online)

A Budgeting Loan is interest free so you only pay back what you borrow. The repayments will be taken automatically from your benefits. The amount you repay is based on your income - including any benefits you receive - and what you can afford. After you apply for a Budgeting Loan, you’ll get an email, text or letter telling you if you’ve been offered a loan. This explains how much your weekly repayments will be if you accept the loan. You normally have to repay the loan within 2 years (104 weeks). If you stop getting benefits You’ll get a letter from DWP Debt Management explaining how to repay and manage benefit money you owe . You can pay back the loan in full or set up regular monthly payments.

Apply for a Budgeting Loan

Check you’re eligible before you apply for a Budgeting Loan. You can apply online or using a paper form. It’s quicker to apply online. Do not apply if you get Universal Credit, New Style Jobseeker’s Allowance or New Style Employment and Support Allowance. Apply for a Budgeting Advance instead if you get Universal Credit. There’s a different way to apply for a Budgeting Loan in Northern Ireland . Apply online When you apply online, you can choose to get a decision on your loan by either: email text message letter It’s quicker to get the decision by email or text message and accept it online. If you’ve already applied and you’re waiting to get a decision, do not apply again. If you need to change details on your application, contact the Social Fund Enquiry Line. Apply online Apply using the paper form You will need to fill in form SF500. You can: download and print the form phone the Social Fund Enquiry Line and ask for a form to be posted to you - allow 7 days for the form to arrive Return your completed form by post. Contact the Social Fund Enquiry Line The line can: make changes to your application after you’ve submitted it post an application form to you Social Fund Enquiry Line Telephone: 0800 169 0140 Welsh language: 0800 169 0240 Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 169 0140 British Sign Language (BSL) video relay service if you’re on a computer - find out how to use the service on mobile or tablet Monday to Friday, 10am to 3pm Find out about call charges

After you apply you’ll be given a decision on your application. You need to accept the decision before you get your money. If you apply online, you’ll find out if you’ve been offered a loan within: 7 days if you get the decision by text or email 21 days if you get the decision by letter If you apply by post, you’ll get a letter telling you if you’ve been offered a loan within 21 days. Accepting the loan How you accept the loan depends on how you applied. Accept online You can accept the loan offer online by following the instructions in the text or email. Accept by post You can accept by signing page 4 of the acceptance letter and returning it in the pre-paid envelope provided. Make sure the reply slip is folded so that the return address is fully visible in the envelope window. Return it to the address on the letter. Do not send it to your local Jobcentre Plus office as this may delay getting your loan. Getting your money You’ll get your money within: 7 days of accepting the loan offer online 21 days of your loan offer acceptance being received by post If you applied online, the money will be paid into the same bank, building society or credit union account that your benefit is paid into. If you applied by post, the money will be paid into the account you put on the form. You’ll get a text message confirming this has been done. Questions about your application Call the Social Fund Enquiry Line if you have a question about the progress of your application. You should wait: 14 days before phoning if you applied online 21 days before phoning if you applied by post Your application may not have been processed before then. Social Fund Enquiry Line Telephone: 0800 169 0140 Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 169 0140 British Sign Language (BSL) video relay service if you’re on a computer - find out how to use the service on mobile or tablet Welsh language: 0800 169 0240 Monday to Friday, 10am to 3pm Find out about call charges If you disagree with a decision You can ask for a Budgeting Loan decision to be looked at again if: your application was unsuccessful, and you think that’s wrong you’ve been granted a Budgeting Loan, but you disagree with the amount Write to the address at the top of your decision letter. If you do not have your decision letter, contact the Social Fund Enquiry Line for details. You should include: your full name your National Insurance number your address and phone number the reasons why you disagree with the decision Your request must arrive within 28 days of the date on your decision letter. What happens next You’ll get a letter telling you whether the decision has changed or not, and explaining the reasons why. If you’re unhappy with the response you can ask the office of the Independent Case Examiner for a review . Your request must arrive within 28 days of the date on your second decision letter.

Other help you can get

You may be able to get other kinds of support, including: help from your local council and Jobcentre Plus the Discretionary Assistance Fund in Wales a Crisis Grant or Community Care Grant in Scotland Discretionary Support or a Short-term Benefit Advance in Northern Ireland

Budgeting Loans

How they work

A Budgeting Loan can help pay for:

furniture or household items (for example, washing machines or other ‘white goods’)
clothes or footwear
rent in advance
costs linked to moving house
maintenance, improvements or security for your home
travelling costs within the UK
costs linked to getting a new job
maternity costs
funeral costs
repaying hire purchase loans
repaying loans taken for the above items

Crisis Loans are not available any more.

You may be eligible for a Budgeting Loan if you’ve been on certain benefits for 6 months.

You only have to pay back the amount you borrow, and repayments are taken automatically from your benefits.

This guide is also available in Welsh (Cymraeg) and Easy Read format.

View a printable version of the whole guide

Budgeting Loans

How they work

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Budgeting Loans

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