Budgeting Loan or Budgeting Advance?
They do the same job — an interest-free loan for a one-off cost — but which one you apply for depends on the benefit you're on:
- On Universal Credit? You apply for a Budgeting Advance.
- On Income Support, income-based JSA, income-related ESA or Pension Credit? You apply for a Budgeting Loan.
Both are 0% interest
Whichever one you get, there's no interest and no charges. You repay only the exact amount you borrowed, and it comes out of your benefit automatically — so there's nothing to set up and nothing extra to find.
Budgeting Loan — the details
How much you can get
- The lowest amount is £100.
- Up to £348 if you're single.
- Up to £464 if you have a partner.
- Up to £812 if you or your partner claim Child Benefit.
The exact amount depends on whether you can afford to repay it, whether you have savings over £1,000 (£2,000 if you or your partner are 63 or over), and whether you're already repaying a previous loan.
Who can get it
You must have been getting one of these for the past 6 months:
- Income Support
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
- Pension Credit
When you cannot get a Budgeting Loan
You can't get one if you're on Universal Credit (use a Budgeting Advance instead), if you get New Style JSA or New Style ESA, if you're involved in industrial action, or if you owe more than £1,500 in total for Crisis Loans and Budgeting Loans. (Crisis Loans no longer exist as a new product.)
Universal Credit Budgeting Advance — the details
If you're on Universal Credit, this is your version:
- Borrow £100 up to £812, depending on your circumstances (single / couple / with children).
- You usually need to have been on Universal Credit for at least 6 months — though there are exceptions if the money helps you get or keep a job.
- Savings over £1,000 and existing DWP debts can reduce how much you're offered.
Easier repayments since 2024–25
Since December 2024 you can repay a Budgeting Advance over up to 24 months (it used to be 12), so the monthly amount is smaller. And from April 2025, most Universal Credit deductions are capped at 15% of your standard allowance — so you keep more of your UC each month while repaying.
Before you borrow — check these first
A loan has to be repaid. Before applying, check whether there's money you don't have to pay back:
Never use a loan shark or a payday lender
A Budgeting Loan or Advance at
0% is one of the cheapest ways to borrow in Britain. If you're refused, talk to Citizens Advice or your local credit union — never an unlicensed lender. Report loan sharks to the Illegal Money Lending Team (England) on
0300 555 2222.
Budgeting Loan & Advance — common questions
What is a Budgeting Loan?
An interest-free (0%) Social Fund loan for people on certain benefits, to cover one-off costs like white goods, clothing, rent in advance, moving, a funeral or the cost of getting a job. Borrow £100 up to £348 (single), £464 (couple) or £812 (if you or your partner claim Child Benefit). You only repay what you borrow, taken from your benefits. On Universal Credit you get a Budgeting Advance instead.
Who qualifies?
You must have had Income Support, income-based JSA, income-related ESA or Pension Credit for the past 6 months. You can't get one on Universal Credit (use a Budgeting Advance), on New Style JSA/ESA, during industrial action, or if you owe over £1,500 in Crisis/Budgeting Loans. Savings over £1,000 (£2,000 if 63+) can reduce the amount.
What's a Universal Credit Budgeting Advance?
The Universal Credit version — also 0% interest, for the same one-off costs, £100 up to £812. You usually need 6 months on UC (with exceptions for job-related costs). Since Dec 2024 you can repay over up to 24 months, and from Apr 2025 most deductions are capped at 15% of your standard allowance.
How much interest do I pay?
None — both are 0% interest. You repay only the exact amount borrowed, automatically from your benefit. Far cheaper than a payday loan or doorstep lender, and far safer than a loan shark.
How do I repay it?
Automatically from your benefit each payment, so there's nothing to set up. The length depends on what you can afford — up to 24 months for a UC Budgeting Advance, with deductions capped at 15% of your standard allowance. If repayments become unaffordable, contact the DWP.
How do I apply?
Budgeting Loan: online at GOV.UK or paper form SF500. Budgeting Advance: through your UC journal, the UC helpline (0800 328 5644), or your Jobcentre. Northern Ireland uses a separate route via nidirect. Check first whether a grant you never repay (Crisis & Resilience Fund, Sure Start Maternity Grant, Funeral Expenses Payment) covers it instead.
Sources: Budgeting Loans · GOV.UK (How they work + Eligibility + What you could get + Repayments). Universal Credit Budgeting Advance · GOV.UK. Amounts (£100 min; up to £348 single / £464 couple / £812 with Child Benefit), 0% interest, 6-month rule, savings limits read directly from GOV.UK. 24-month repayment (since Dec 2024) + 15% deductions cap (from April 2025) per DWP Advances guidance. Free help: Universal Credit helpline 0800 328 5644 · Citizens Advice 0800 144 8848 · StepChange 0800 138 1111 · MoneyHelper. Report a loan shark: Illegal Money Lending Team 0300 555 2222. Northern Ireland has a separate route via nidirect. Last reviewed: 6 June 2026.