Budgeting Loans from the Social Fund

Budgeting Loans

Key information

Budgeting Loans can help pay for essential items like furniture, household equipment or clothing. The loan has to be paid back but it is interest-free.

Before you apply for a Budgeting Loan, check whether you can apply for a Community Care Grant, a Sure Start Maternity Grant or a Funeral Payment, as these do not have to be paid back.

Applies to: England, Scotland, Wales, Northern Ireland

Age rules: No specific age rules

Taxable: No

Administered by: Department for Work and Pensions

Index

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Who does it help?

Budgeting Loans help people on a low income. The money comes from the Social Fund.

A decision is made on whether you can have a loan by looking at:

Your circumstances, and
Any existing Budgeting Loan you owe, and
Your savings, and
Your ability to pay back the loan.

You can only get a budgeting loan if, on the day you apply, you are getting:

You must have been receiving one of these benefits, or have been the partner of someone receiving one of these benefits, for at least 26 weeks (breaks of not more than 28 days are ignored).

You cannot get a full Budgeting Loan if you or your partner have more than £1,000 in savings. This amount is £2,000 if you or your partner is over state pension age.

What help does it provide?

A Budgeting Loan is only for certain essential items or services. You can apply for help with the following categories of expenses:

Furniture and household equipment, clothing and footwear
Rent in advance or removal expenses to new accommodation
The costs of improvement, maintenance and security of your home
Essential travelling expenses and expenses due to you getting or starting a job
Hire purchase payments and other debts, but only if the money was borrowed for expenses in any of the other categories.

The money will be paid into your bank or building society account. In some cases it can be paid at a post office.

How much does it pay?

The minimum amount of budgeting loan that you can get is £100 and the maximum amount is £1,500. You cannot get more than they think you can pay back.

If you are given a Budgeting Loan, it has to be paid back but you do not have to pay interest on the loan. They will tell you what the repayment rates will be. A loan should normally be repaid within two years.

A Budgeting Loan does not count as income and will not affect other benefits you get.

How do I make a claim?

Contact your local Jobcentre Plus Office (link opens in a new window) for a claim form

Download a claim form from the Department for Work and Pensions website (link opens in a new window)

In Northern Ireland

Contact your local Social Security/Jobs and Benefits Office (link opens in a new window) for a claim form

Download a claim form from the NI Direct website (link opens in a new window)

You do not have to say exactly what you need or why. However, you must say the category of the expenses for which you want a loan and the amount of money you need.