The money from both payments is paid to you by the DWP and is intended to be used for emergencies such as paying for essential household items like fridges and washing machines, clothes and footwear, and maternity or funeral costs
Households struggling financially can apply for a £800 payment from the Department for Work and Pensions (DWP). The help comes in the form of a Budgeting Loan and is available to people who are claiming certain income-based benefits and is a lump sum payment to help with financial emergencies.
There is also a lump sum payment called a “Budgeting Advance” which is very similar and is given to people claiming specifically Universal Credit only – you cannot claim a Budgeting Loan if you are claiming Universal Credit.
The money from both payments is paid to you by the DWP and is intended to be used for emergencies such as paying for essential household items like fridges and washing machines, clothes and footwear, and maternity or funeral costs. You could also apply for one to pay for maintenance, improvement and security work on your home, or to repay a hire purchase loan or any expenses linked to a new job.
READ MORE: DWP state pension top up deadline can be extended with easy trickREAD MORE: People claiming PIP must hit new points threshold in DWP assessment under major shake-up
For either loan payment, the smallest loan you can take is £100 and the maximum amount is based on your living situation. If you are single you can receive a loan of £384, you can get a £464 payment if you’re part of a couple, or a £812 loan if you have children.
You can apply for a Budgeting Loan if you’ve been claiming one of these benefits for at least six months:
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance.
The amount approved by the DWP will depend on whether you can pay it back, have savings of more than £1,000 – or up to £2,000 if you or your partner are 63 or over – or are already repaying a similar loan.
You can apply for a Budgeting Advance if you:
- Have been getting Universal Credit for at least six months – unless you need the money to help you get or keep a job
- Have earned less than £2,600 (£3,600 if you’re in a couple) in the past six months
- Are not already paying off another Budgeting Advance loan
You won’t qualify for either DWP loan payment if you’re claiming New Style Jobseeker’s Allowance (JSA) or New Style Employment and Support Allowance (ESA), are involved in industrial strike action, or already owe more than £1,500 in total for similar loans.
As the name indicates, the Budgeting Loan and the Budgeting Advance must be paid back with the repayment amounts based on your income and affordability. However, it is interest-free and you only pay back the exact amount you borrowed. For both support payments, you have 24 months to repay the money back.
Before this, those who received a Budgeting Advance only had 12 months to repay the money back. However, this was changed on December 4, 2024. So if you are already paying back a Budgeting Advance or you took one out/requested one before this date then you will need to pay it back within one year.
The repayments are then taken automatically from your future benefits – so you will receive less in your benefit payments if you are repaying one of these loans. If you stop getting benefits while you’re still making repayments, you’ll need to agree on another way to pay the money back.
You can apply for a Budgeting Loan online – which is the quickest way to do it – or by calling the Social Fund Enquiry Line on 0800 169 0140. If you’re successful, an email, text or letter will be sent with details of your weekly repayments.
To apply for the Budgeting Advance when you’re claiming Universal Credit, you will need to speak to your work coach at your local JobCentre. You can also contact the Universal Credit helpline on 0800 328 5644 or write a message in your Universal Credit journal.
READ MORE: M&S’ ‘most comfortable’ £34 Sketchers sandals are ‘light as a feather’