The DWP Budgeting Loan: How to Apply & Qualify

If you have been receiving certain benefits for at least six months, you can apply for an interest-free Budgeting Loan from the Department for Work and Pensions (DWP). Because it is interest-free, you only pay back exactly what you borrowed, with deductions taken directly from your ongoing benefit payments.

The DWP will only approve a Budgeting Loan for specific, essential costs. These include:

• Furniture, bedding, or household appliances (white goods)
• Clothing and footwear
• Rent payments in advance (for moving to a new home)
• Costs associated with travelling to find work
• Home maintenance, safety, or security improvements
• Maternity or funeral expenses
• Repaying certain HP (Hire Purchase) or personal loans taken out for the items listed above

To get a Budgeting Loan, you or your partner must have been receiving one of these benefits for at least the last 6 months:

• Income Support
• Income-based Jobseeker's Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Pension Credit

What if I am on Universal Credit?

If you receive Universal Credit, you cannot get a Budgeting Loan. Instead, you must apply for a Budgeting Advance. The rules are very similar, but you apply directly through your online Universal Credit journal or by calling the UC helpline. You only need to have been on Universal Credit for 6 months to qualify (unless you need the money to secure a new job or keep a job, in which case there is no 6-month wait).

The absolute minimum you can borrow is £100. The maximum amounts depend on your household circumstances:

• Up to £348 if you are single.
• Up to £464 if you have a partner.
• Up to £812 if you or your partner claim Child Benefit for children.

1. 1

   Apply online

   The fastest route is online at gov.uk/apply-budgeting-loan. Have your National Insurance number and bank details ready.

2. 2

   Wait for your offer letter

   If your application is approved, you will receive an offer letter (usually via email or SMS) detailing your weekly repayment deductions.

3. 3

   Accept and receive funds

   Once you accept the offer, the funds are typically deposited directly into your bank account within 7 to 12 working days.