Budgeting Loans

If you are on a low income and need help with certain important costs, you may be able to get an interest-free Budgeting Loan from the Social Fund that you pay back.

Who is eligible?

You may be eligible for a Budgeting Loan if you or your partner or civil partner have been claiming or getting payment for one of the following benefits for at least 26 weeks:

• Income support
• income-based Jobseeker's Allowance
• Pension Credit

and you need help to pay for any of the following:

• furniture or household equipment
• clothing or footwear
• advance rent or removal expenses for a new home
• travelling expenses
• things to help you look for or start work
• improving, maintaining or securing your home
• repaying hire purchase or other debts you took out to pay for any of the above

How much do you get?

You can apply to borrow between £100 and £1,500. The final amount of Budgeting Loan you get will depend on:

• how long you've been on benefits
• the number of people in your household
• any existing money you owe to the Social Fund
• your ability to repay the loan
• your savings

The following are not taken into account:

• the urgency of your need
• any health problems you or your family might have

How it's paid

The loan is usually paid into your bank, building society or Post Office account by Direct Payment.

How do you repay it?

Your repayments, which are worked out at the time your loan is agreed, are usually automatically taken out of your benefit. If you're not getting benefits, another method will be agreed. You normally have to repay a Budgeting Loan within 104 weeks. The repayments are interest-free, which means you only pay back what you borrowed and no more.

Effect on other benefits

A Budgeting Loan award does not count as income and will not affect other benefits you're getting.

How to apply

Fill in the form SF500, which you can get from your local Jobcentre

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