To get a Budgeting Loan you must have been getting one or more of these benefits for the past 6 months:
- Income Support
- income-based Jobseeker’s Allowance
- income-related Employment and Support Allowance
- Pension Credit
If you moved from Universal Credit to Pension Credit, any time spent claiming Universal Credit will count towards the 6 months.
You cannot get a Budgeting Loan if:
- you are currently claiming Universal Credit – apply for a Budgeting Advance instead
- you’re involved in industrial action (for example, a strike, walkout or lockout)
- you owe more than £1,500 in total for Crisis Loans and Budgeting Loans
A Budgeting Loan can help pay for:
- furniture or household items (for example, washing machines or other ‘white goods’)
- clothes or footwear
- rent in advance
- costs linked to moving house
- maintenance, improvements or security for your home
- travelling costs within the UK
- costs linked to getting a new job
- maternity costs
- funeral costs
- repaying hire purchase loans
- repaying loans taken for the above items
Crisis Loans are no longer available.
Paying back the loan
A Budgeting Loan is interest free so you only pay back what you borrow.
The repayments will be taken automatically from your benefits. The amount you repay is based on your income – including any benefits you receive – and what you can afford.
After you apply for a Budgeting Loan, you’ll get an email, text or letter telling you if you’ve been offered a loan. This explains how much your weekly repayments will be if you accept the loan.
You normally have to repay the loan within 2 years (104 weeks). If you stop getting benefits, you’ll need to arrange another way to repay.
Apply for a loan online
https://www.apply-budgeting-loan.service.gov.uk/steps/appointee-who
When you apply online, you can choose to get a decision on your loan by either:
- text message
- letter
It’s quicker to get the decision by email or text message and accept it online.
You’ll find out if you’ve been offered a loan within:
- 7 days if you get the decision by text or email
- 21 days if you get the decision by letter
Apply using the paper form
You will need to fill in form SF500. You can:
- download and print the form
- phone the Enquiry Line and ask for a form to be posted to you – allow 7 days for the form to arrive
You’ll get a letter telling you if you’ve been offered a loan within 21 days.
Enquiry Line
Telephone: 0800 169 0140
Textphone: 0800 169 286
Welsh language: 0800 169 0240
Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 169 0140
Video relay service for British Sign Language (BSL) users – check you can use the service
Monday to Friday, 8am to 6pm
Find out about call charges
Return your completed form by post.
Getting your money
You’ll get your money within:
- 7 days of accepting the loan offer online
- 21 days of your loan offer acceptance being received by post
The money will be paid into your bank, building society or credit union account.
You’ll get a text message confirming this has been done.
Questions about your application
Call the Enquiry Line if you have a question about the progress of your application.
You should wait:
- 14 days before phoning if you applied online
- 21 days before phoning if you applied by post
Your application may not have been processed before then.
Enquiry Line
Telephone: 0800 169 0140
Textphone: 0800 169 286
Welsh language: 0800 169 0240
Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 169 0140
Video relay service for British Sign Language (BSL) users – check you can use the service
Monday to Friday, 8am to 6pm
Find out about call charges