Budgeting Loans

You might be able to apply for a Budgeting Loan to help you cover the costs of essential things such as clothes, furniture, hire purchase debts or moving. £ 100 is the smallest amount you can borrow with this sort of loan. Budgeting Loans are interest-free so you only have to pay back what you borrow. You usually have to repay the loan within 104 weeks.

The payments come from your benefits. If you stop getting benefits you’ll have to agree another way to repay the loan. You can apply for a budgeting loan if you’ve been getting income-related benefits for at least 26 weeks. You must still be getting income-related benefits when your loan application is assessed.

How Much Can You Apply For?

There are three rates for Budgeting Loans, depending on whether you are single, a couple without children or a one or two parent family with children. You are able to get up to the following maximum amounts (you can’t borrow more than you’re able to repay):

  • £812 if you’ve got children
  • £348 if you are single
  • £464 if you’re a couple
  • £100 is the minimum amount of budgeting loan you can apply to borrow.

Paying back a Budgeting Loan

If you’ve been granted a Budgeting Loan, it needs to be repaid but you’ll not pay interest on the loan. Normally a Budgeting Loan should be paid back within twenty four months.


To be able to qualify for a Budgeting Loan, you must have been receiving one of the following benefits for a minimum of twenty six weeks:

  • Support and Employment Allowance
  • Pension Credit
  • Income Support
  • Jobseeker’s Allowance

When your application is assessed you must still be getting one of these benefits.

What Budgeting Loans Can be Used For

  • Furniture
  • Rent in advance
  • Footwear or clothing
  • Things to help you search for or start work
  • Removal expenses when you move home
  • Travelling expenses
  • Maternity expenses
  • Improving, securing or maintaining your house
  • Paying back other debts you took out to pay for any of the above or hire purchase