Budgeting Loans and Advances

Last updated: 22/01/2020

Budgeting loans and advances could be available to you under certain circumstances.

Applications for a budgeting loan

You can apply online or pick up a form at your local Jobcentre Plus.

Budgeting loans

Budgeting loans are interest-free loans to purchase items such as furniture, household equipment, clothing, maternity expenses, funeral expenses, rent deposit, removal expenses and travelling expenses. The money has to be paid back.

To qualify you must be receiving one of the following for a period of 26 weeks:

  • Income support
  • Income-based jobseeker’s allowance
  • Income-related employment and support allowance
  • Pension credit

Apply for budgeting loan online.


Budgeting advances

Budgeting advances are like budgeting loans but are for people getting universal credit. Budgeting advances must be repaid from future payments of universal credit.

Payments are discretionary and there is no right of appeal if you are turned down.

To qualify you must be getting universal credit or been claiming one of the benefits above for at least six months.

The minimum amount of a budgeting loan or advance is £100, and the maximum is £812. If you have capital of over £1,000, the budgeting advance is reduced by the amount the capital exceeds £1,000.

Applications for a budgeting advance are made through your Jobcentre office or through the Universal Credit Helpline – 0800 328 5644. See info.