Who qualifies for a Budgeting Loan?

To get a Budgeting Loan you must have been getting Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, or Pension Credit for the past 6 months. You cannot get a Budgeting Loan if you're on Universal Credit (apply for 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. Savings over £1,000 (£2,000 if you or your partner are 63 or over) can reduce the amount you're offered.

What is a Universal Credit Budgeting Advance?

If you're on Universal Credit you can't get a Budgeting Loan, but you can apply for a Budgeting Advance, which is the Universal Credit version. It's also interest-free and covers the same kinds of one-off costs. You can usually borrow between £100 and £812 depending on your circumstances. You normally need to have been on Universal Credit (or certain other benefits) for at least 6 months, though there are exceptions if the money is to help you get or keep a job. Since December 2024 you can repay over up to 24 months, and from April 2025 most benefit deductions are capped at 15% of your standard allowance, so the monthly repayment is more manageable.

Repayments are deducted automatically from your benefit each time it's paid, so you don't have to set up a direct debit or remember to pay. The amount and length depend on what you can afford. For a Universal Credit Budgeting Advance you can take up to 24 months to repay, and deductions are generally capped at 15% of your standard allowance. If your circumstances change and the repayments become unaffordable, contact the DWP — you may be able to lower the amount or pause repayments for a short period.

For a Budgeting Loan, apply online through GOV.UK or by paper form (SF500). For a Universal Credit Budgeting Advance, apply through your online Universal Credit account (journal), by phoning the Universal Credit helpline, or at your local Jobcentre Plus. You'll be asked what the money is for and about your income, savings and any existing DWP debts. Decisions are often quick. In Northern Ireland there's a separate route through nidirect.

← Back to Sorted Budgeting Loan & Advance · UK guide

An interest-free loan for a one-off cost you can't cover.

Q: What is a Budgeting Loan?

A Budgeting Loan is an interest-free (0%) loan from the government's Social Fund to help people on certain benefits pay for one-off or unexpected costs — such as furniture and white goods, clothing, rent in advance, moving home, home repairs, travel within the UK, the cost of getting a new job, maternity costs or funeral costs. The lowest amount is £100 and you can get up to £348 if you're single, £464 if you have a partner, or £812 if you or your partner claim Child Benefit. Because it's interest-free you only ever repay what you borrowed, and repayments are taken automatically from your benefits. If you're on Universal Credit, you apply for a Budgeting Advance instead, which works in a very similar way.

Q: How much interest do I pay?

None. Both Budgeting Loans and Universal Credit Budgeting Advances are completely interest-free — 0%. You only ever repay the exact amount you borrowed, with nothing added on. That makes them far cheaper than a payday loan, a doorstep lender, a high-cost credit card, or an illegal loan shark. Repayments are taken automatically from your benefit payments before you receive them.

Last verified 6 Jun 2026 · Source GOV.UK Budgeting Loans + Universal Credit Budgeting Advance · Publisher: SortedUK Ltd (filed 5 Jun 2026)

If you're on certain benefits, the government can lend you £100 up to £812 at 0% interest for a one-off cost — white goods, clothes, rent in advance, moving, home repairs, a funeral, or the cost of getting a job. You only ever repay what you borrow, taken straight from your benefits. On the old benefits it's a Budgeting Loan; on Universal Credit it's a Budgeting Advance — same idea, you apply a different way. Far cheaper than a payday lender, and far safer than a loan shark.

0%Interest — ever

£100–£812Amount you can borrow

6 monthsOn benefits to qualify

Up to 24 moTo repay (UC Advance)

Which one do I get? Struggling with debt?

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.

What it can pay for

A Budgeting Loan or Advance can help with one-off costs such as:

Furniture and household items — washing machine, cooker, fridge and other white goods.
Clothes or footwear.
Rent in advance or costs of moving home.
Home maintenance, improvements or security.
Travel costs within the UK.
Costs of getting a new job (tools, uniform, travel to interviews).
Maternity or funeral costs.
Repaying hire-purchase or other loans taken for the above.

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.

How to apply

Claim it now — free

Apply via GOV.UK → 📞 UC helpline 0800 328 5644

Have ready: what the money is for, your income, savings, and any existing DWP debts. On Universal Credit? Apply for a Budgeting Advance through your UC account/journal instead.

Budgeting Loan — apply online at GOV.UK ("Apply for a Budgeting Loan"), or by paper form SF500.
Budgeting Advance (Universal Credit) — apply through your online UC account / journal, by phoning the Universal Credit helpline, or at your local Jobcentre Plus.
Have details ready — what the money is for, your income, savings, and any existing DWP debts.
Northern Ireland uses a separate route via nidirect.

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:

Grants you never repay — the council Crisis & Resilience Fund, Sure Start Maternity Grant (£500), Funeral Expenses Payment, charity grants.
Benefits you may be missing — run the "What am I missing?" scan to check Pension Credit, Council Tax Reduction and more.
If you're in debt — get free help first via debt help or StepChange 0800 138 1111, so a new loan doesn't make things worse.

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.

Free UK support

GOV.UK Budgeting Loans — eligibility + online application.
Universal Credit helpline — 0800 328 5644 for Budgeting Advance queries.
Citizens Advice — 0800 144 8848. Free help applying + a full benefits check.
StepChange — 0800 138 1111. Free FCA-regulated debt advice.
MoneyHelper — free, government-backed money guidance.

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.

Your safest next step today

Need money for a one-off cost? Check the free grants first, then the 0% loan.

A Budgeting Loan or Advance is interest-free and far safer than a payday lender — but a grant you never repay is better still. Run the money scan to check what you're owed before you borrow.

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Sorted's "What am I missing?" cross-checks grants you never repay, the 0% Budgeting Loan, benefits and social tariffs — so you borrow the smallest amount you actually need.

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