Emergency costs and unexpected bills can often be a nightmare to handle. However, the Department for Work and Pension (DWP) offers flexible interest-free support to many eligible Brits.
The Government’s Budgeting Loans scheme is designed to assist with everyday expenses like new furniture, clothes, home maintenance, and more in various situations. The programme even covers unexpected costs related to starting a new job, moving house or maternity care, provided you meet its specific criteria.
This only involves Brits who have been receiving certain benefits for at least six months, including:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Pension Credit
Those currently on the New Style Jobseeker’s Allowance or New Style Employment and Support Allowance cannot receive Budgeting Loans. Also, anyone involved in strikes or industrial action, those owing more than £1,500 in total for previous Crisis and Budgeting Loans, and those claiming Universal Credit are not eligible.
Government advice explains: “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.”
The sum you receive varies depending on several personal factors, such as your savings and loan history, as well as your ability to pay money back. However, the minimum amount you can borrow currently stands at £100.
The Government outlines the following:
- £348 is the maximum amount if you’re single
- £464 is the maximum amount if you have a partner
- £812 is the maximum amount if you or your partner claim Child Benefit
Usually, the deadline to pay a Budgeting Loan back is two years. Brits can do this through regular monthly payments or a one-off instalment if available. If you’re eager to apply, you can visit the Government’s website to fill out an online form or download and print this to send by post.
You can then opt to receive the decision of your loan via email, text or letter. If you apply online, you should receive a decision on the loan application within a week by text or email.
Postal applications generally receive a letter response within 21 days. The Government adds: “If you applied online, the money will be paid into the same bank, building society or credit union account that your benefit is paid into.
“If you applied by post, the money will be paid into the account you put on the form. You’ll get a text message confirming this has been done.”
