Budgeting Loans explained (and the Universal Credit alternative)

A Budgeting Loan is an interest-free loan from the Department for Work and Pensions (DWP) to help with one-off costs such as furniture, a cooker or the costs of moving home. You only pay back what you borrow, and repayments come out of your benefits automatically.

Who can get a Budgeting Loan

You must have been getting one or more of these benefits for the past six 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, your time on Universal Credit counts towards the six months.

You cannot get a Budgeting Loan if you get Universal Credit, New Style Jobseeker's Allowance or New Style Employment and Support Allowance, if you are involved in industrial action, or if you already owe more than £1,500 in total for Crisis Loans and Budgeting Loans. Crisis Loans no longer exist. Northern Ireland has its own scheme.

What a Budgeting Loan can pay for

• furniture and household items, such as a washing machine
• clothes or footwear
• rent in advance, or costs of moving house
• maintenance, improvements or security for your home
• travel within the UK
• costs of getting a new job
• maternity or funeral costs
• repaying hire purchase or loans taken out for any of the above

How much you can borrow

The amount offered depends on whether you can repay it, whether you have savings over £1,000 (£2,000 if you or your partner are 63 or over), and whether you are still repaying an earlier loan.

Repayments

The loan is interest free. Your offer tells you the weekly repayment, which is based on your income and what you can afford. You normally repay within two years (104 weeks). If your benefits stop, DWP Debt Management will write to you about paying the rest.

How to apply

Apply online through GOV.UK — it is quicker — or on paper using form SF500, which you can print or have posted to you (allow seven days). Online, you can choose to get the decision by email, text or letter. Decisions arrive within 7 days by text or email, or within 21 days by letter or if you applied by post. You must accept the offer before the money is paid; it then arrives within 7 days (accepted online) or 21 days (accepted by post).

Need to change an application or chase a decision? See the Budgeting Loan contact number.

Budgeting Advance for Universal Credit claimants

If you get Universal Credit, a Budgeting Advance covers similar one-off costs: furniture, household items like a cooker or washing machine, essential items for your family, clothes, home repairs or security, funeral costs, or a rent deposit and removal costs. It cannot be used for ongoing costs such as food, household bills, rent or paying off debts.

The amounts are the same — from £100 up to £348 if you are single, £464 for a couple or £812 if you have children. You usually need to have been getting Universal Credit, Employment and Support Allowance or Pension Credit for six months (unless the advance is to help you start or keep a job), and earnings over £2,600 (£3,600 for a couple) in the past six months can rule you out. Apply through your journal, your work coach or the Universal Credit helpline on 0800 328 5644. More detail: advances and hardship payments.

Related guides: Budgeting Loan number · Advances & hardship · UC payments · Extra support

Last checked against official sources: 24 October 2026. Numbers, amounts and opening hours can change — if in doubt, check GOV.UK.