DWP offering up to £812 in extra support – how to apply

The ongoing cost of living crisis means households continue to struggle. For those on benefits, a Budgeting Loan could provide some relief for those finding it hard to meet necessary expenses, assisting with costs such as advance rent, clothing, and maternity needs.

This loan, provided by the Department for Work and Pensions (DWP), is only accessible to individuals who have been claiming certain benefits for the past six months. However, it’s crucial to understand that not all benefits qualify for this loan, for instance, those currently receiving Universal Credit are not eligible.

Yet, if you’ve transitioned from Universal Credit to Pension Credit, the time spent claiming the latter will count towards the six-month requirement. Your eligibility might also be affected if you’re already repaying an existing Budgeting Loan or Crisis Loan.

It’s essential to bear in mind that any funds received from a Budgeting Loan must be repaid. According to official guidance, the minimum amount you can claim with a Budgeting Loan is £100.

But, if you or your partner claim Child Benefit, you could potentially receive up to £812. If you’re single and don’t claim Child Benefit, the maximum you could get would be £348, which increases to £464 if you have a partner.

The amount you’re eligible for will depend on your ability to repay the loan and your savings balance. A significant benefit of a Budgeting Loan is that it’s interest-free, so you only have to pay back the amount borrowed.

Repayments are automatically deducted from your benefits, with the repayment amount based on your income and affordability. The government recommends that repayments should be completed within two years of receiving the loan.

However, you will not be eligible to apply for a Budgeting Loan if you receive benefit payments from either New Style Jobseeker’s Allowance or New Style Employment and Support Allowance. Additionally, you won’t be considered for the loan if you’re employed and involved in a trade dispute, or if you already owe more than £1,500 in total due to Crisis Loans and Budgeting Loans.

You can apply for a Budgeting Loan on GOV. UK here.