UK Budgeting Loan 2024 – Eligibility Criterias to get upto £812!

A Budgeting Loan is an interest-free loan provided by the Department for Work and Pensions (DWP). It’s designed to help people on low incomes cover essential, one-off costs that they wouldn’t otherwise be able to afford. Unlike commercial loans, there’s no interest charged on the amount borrowed.

UK Budgeting Loan

A Budgeting Loan is an interest-free loan offered by the UK government to help people on low incomes cover essential expenses. These loans, also known as Budgeting Advances for those on Universal Credit, can be used to pay for a variety of needs, including household items, rent deposits, work-related costs, and more. 

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To qualify for a Budgeting Loan, you must have been receiving certain means-tested benefits, such as Income Support, Pension Credit, or income-based Jobseeker’s Allowance, for at least 6 months. If you are currently on Universal Credit, you can apply for a Budgeting Advance instead.

UK Budgeting Loan Eligibility Criteria

The UK Budgeting Loan offers a helping hand to those on low incomes facing essential, one-off costs. However, not everyone is eligible. Eligible people includes:

  • You must be receiving one or more of the following qualifying benefits for at least six months:
    • Income Support
    • Jobseeker’s Allowance (Income-based)
    • Employment and Support Allowance (Income-related)
    • Universal Credit (not eligible for Budgeting Loans, but can apply for a Budgeting Advance)
  • If you recently switched from Universal Credit to Pension Credit, the DWP will consider the time you were on Universal Credit towards the six-month qualifying period.
  • There might be limitations on eligibility based on other benefits you receive or specific circumstances.
  • You cannot have outstanding debts from previous Budgeting Loans or Crisis Loans.
  • Your ability to repay the loan based on your current benefit income will be assessed.
  • Any savings you or your partner may have could affect the eligibility or amount you can borrow.

What can a UK Budgeting Loan be used for?

A UK Budgeting Loan offers some flexibility to cover a variety of essential, one-off expenses. A breakdown of what you can use it for:

Essential Household Items and Furnishings:

  • Appliances like refrigerators, washing machines, cookers (essential for food preparation)
  • Furniture like beds, tables, chairs (considered necessary for basic living)

Clothing and Footwear:

  • Essential clothing for different seasons (ensuring appropriate attire for weather conditions)
  • Shoes for work or school (important for daily activities)

Moving and Housing Costs:

  • Rent deposit and first month’s rent for a new flat (helping with securing stable accommodation)
  • Removal costs associated with moving house (essential for relocation)

Travel Expenses (within the UK):

  • Public transportation costs for essential travel (e.g., job interviews, medical appointments)
  • Costs related to relocating for work (if deemed necessary)

Home Maintenance and Security:

  • Repairs to address essential issues like a leaking roof or faulty heating (ensuring a safe and habitable home)
  • Security improvements like new locks or alarm systems (enhancing safety and security)

Employment-related Costs:

  • Tools or equipment required to start a new job (helping you become employed and financially independent)
  • Interview attire or travel costs associated with securing employment (supporting your job search efforts)

Other Approved Expenses:

  • Maternity costs associated with childbirth (providing support during a significant life event)
  • Funeral expenses for a close family member (helping manage unexpected costs during a difficult time)

Repaying Existing Debts (with limitations):

  • In some cases, you can use a Budgeting Loan to repay high-interest debt accrued on approved items listed above (helping consolidate and potentially reduce overall debt)
  • Luxuries or non-essential items are not covered by the loan.
  • The DWP will assess if the expense is truly necessary before approving the loan.

How much can be borrowed for a UK Budgeting Loan?

The amount you can borrow through a UK Budgeting Loan depends on your specific circumstances. The factors that influence the loan amount:

Maximum Loan Limits:

  • The general range for Budgeting Loans falls between £100 and £812.
  • However, there can be exceptions for specific purposes like funeral expenses, where the maximum might be higher.

Factors Affecting Loan Amount:

  • Household Composition:
    • Single applicants typically qualify for a lower maximum (around £348).
    • Couples can expect a slightly higher maximum (around £464).
    • Families with children generally have the highest potential loan amount (around £812).

Outstanding Debts:

  • Any existing debts from previous Budgeting Loans or Crisis Loans will be deducted from the amount you can borrow.

Repayment Affordability:

  • The DWP will assess your benefit income to determine a realistic and affordable repayment schedule. This directly affects the total amount you can borrow.


  • Having significant savings (over £1,000 for individuals, £2,000 for couples over 63) might reduce your eligibility or the amount you can borrow.
  • The DWP aims to provide enough to cover the essential expense you need help with. They won’t necessarily offer the maximum amount if your specific need is less.

Applying for a Budgeting Loan in the UK

To apply for a UK Budgeting Loan in the UK, the steps involved in are:

  • Head to the official government website ( that outlines the application process for Budgeting Loans.
  • Before applying, ensure you meet the eligibility criteria listed on the webpage.
  • Click the “Apply online” button on the GOV.UK webpage.
  • Accurately fill out the online application form, providing details about your circumstances, benefit income, and the reason for needing the loan.
  • Select how you’d like to receive updates on your application (text message,email, or letter).
  • Once you’ve reviewed the information, submit the online application.

Repaying Your UK Budgeting Loan

Repaying a Budgeting Loan is a straightforward process, but it’s important to understand how it works to avoid any complications. The key points are:

  • Automatic Deductions: Repayments for your Budgeting Loan are typically deducted automatically from your regular benefit payments. This means you don’t need to worry about manually making payments every month.
  • Repayment Schedule: The DWP will determine an affordable repayment schedule based on the amount borrowed and your income from benefits.
  • Loan Term: Budgeting Loans usually need to be repaid in full within two years (104 weeks). However, from December 2024 onwards, Budgeting Advances under Universal Credit will have a repayment term of 24 months.
  • Sticking to the Plan: It’s crucial to stick to the agreed repayment schedule. Missing repayments can affect your future benefit entitlement.
  • Changes in Circumstances: If your circumstances change, such as a decrease in benefits, you should immediately contact the DWP. They might be able to adjust your repayment plan accordingly.
  • Early Repayment: You can choose to repay the loan early if you have the means to do so. There are no penalties for early repayment.

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