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Social Fund - Budgeting Loan
- The claimant must be in receipt of Income Support,
Income-based Job Seekers’ Allowance, Employment and Support Allowance (Income
Related) or Pension Credit (guaranteed credit) and must have
been in receipt of this benefit for 26 weeks prior to the
- The claimant must not have too much capital, as the amount of
the loan is reduced by any capital/savings that the claimant or
partner has more than £1,000 (£2,000 if claimant or their partner
are aged 60 or older). Capital is worked out in the same way as
- Application must be for a category or expense, which is covered
by a Budgeting Loan.
What type of benefit is a Budgeting Loan?
A Budgeting Loan is an interest-free, repayable loan intended to
help people meet intermittent expenses for specific items for which
it may be difficult to budget, enabling the cost to be spread over
a period of time.
Although a claimant does not have to specify what item is needed
for the loan, it must fall within one of seven categories:
- furniture and household equipment;
- clothing and footwear;
- rent in advance and/or removal expenses to secure new
- improvement, maintenance and security of home;
- travelling expenses; expense associated with seeking or
re-entering work; or
- hire purchase and other debts for expenses associated with
How is a Budgeting Loan worked out?
- The maximum amount a claimant can be offered is determined by
two factors. First, the weighing of the application that is
determined on their ‘personal circumstances linked to length of
time on benefit and size of family’.
- The second factor is linked to the local budget, which
determines the maximum amount of loan for each level of weighing.
The actual amount of loan, which a claimant is offered, may be less
than the maximum if they have any outstanding loan.
How to claim
To apply for a Budgeting Loan phone the Department for Work and
Pensions on 0845 608 8580.
You will need to complete Form
The form is also available by request you can pick up a copy at
your local Jobcenter
Social Fund - Budgeting Loan leaflet
Download the Social
Fund - Budgeting Loan leaflet (pdf 63KB).
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