In a continued effort to support low-income families and individuals in the UK, the Department for Work and Pensions (DWP) offers a Budgeting Advance loan of up to £812. This financial support is aimed at helping claimants cover essential costs, such as clothing, food, rent deposits, or work-related expenses.
With inflation and living costs continuing to impact many households, the Budgeting Advance scheme can offer a vital lifeline during difficult times.
What Is the Budgeting Advance?
The Budgeting Advance is an interest-free loan available to individuals on Universal Credit or other qualifying benefits. It is designed to help with one-off expenses, including:
- Clothing and footwear
- Household essentials
- Emergency travel costs
- Rent deposit or moving costs
- Expenses linked to starting or staying in employment
Unlike grants, this is a repayable loan and must be paid back over time through deductions in future benefit payments.
How Much Can You Get?
The amount you can borrow depends on your circumstances:
- Single individuals without children: Up to £348
- Couples without children: Up to £464
- Families with children: Up to £812
The minimum loan amount is £100, and the final loan amount is based on your ability to repay it. If you have savings over £1,000, the amount you can borrow may be reduced accordingly.
Eligibility Criteria
To qualify for a Budgeting Advance, you must meet the following conditions:
- Receiving a qualifying benefit:
- Universal Credit
- Income Support
- Employment and Support Allowance (ESA)
- Jobseeker’s Allowance (JSA)
- Pension Credit
- Duration of benefit: You must have been receiving one of these benefits for at least 6 months, unless the money is needed for a job-related expense.
- Income limit: Your total earnings in the past 6 months must be:
- £2,600 or less for individuals
- £3,600 or less for couples
- Existing loans: You must not currently be repaying another Budgeting Advance.
How to Apply
Universal Credit Claimants can apply through their online Universal Credit account or by calling the Universal Credit helpline at 0800 328 5644.
Alternatively, you can discuss your application during an appointment with your Jobcentre Plus work coach.
Claimants on Other Benefits (such as ESA or JSA) should apply by contacting their local Jobcentre Plus office.
Repayment Terms
Budgeting Advances are repaid over a period of up to 24 months, with payments automatically deducted from your benefit. If you stop receiving benefits during this time, you must arrange to repay the remaining balance in another way.
Additional Support Options
If you’re not eligible for a Budgeting Advance or need more help, here are some other resources:
1. Household Support Fund
This fund, distributed by local councils, helps vulnerable households with essentials like food, energy bills, and white goods. The application process and available support vary by council.
2. Universal Credit Advance
If you’re new to Universal Credit and facing a wait for your first payment, you can request an advance to cover urgent costs.
3. Local Welfare Assistance
Some councils offer emergency grants or support for residents in financial crisis. You can search for local schemes through your council’s official website.
Final Thoughts
The Budgeting Advance from the DWP is a useful tool for those facing short-term financial strain. While it’s a loan that must be repaid, it can offer much-needed breathing room during unexpected situations. Always review your eligibility and consider other options if you need additional help.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
