There are two types of loans available for people claiming certain means-tested benefits. People on Universal Credit who take out a Budgeting Advance Loan of up to £812 to pay for an unexpected emergency now have 24 months to repay the full amount they borrow from the Department for Work and Pensions (DWP). The increase from 12 months should ensure that claimants repay smaller amounts, but over a longer period of time and aims to ease any financial pressure caused by the benefit deduction.
People claiming other benefits from the DWP may also be eligible for a Budgeting Loan to help pay for essential products or services which they would otherwise be unable to afford due to their current circumstances. Before considering taking out either of these loans, check with your local council for financial help, or unclaimed support. Those who have been claiming Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance or Pension Credit for at least six months may be eligible for the loan, which is repaid through deductions from their benefits.
For older claimants who have moved from Universal Credit to Pension Credit, the DWP will add the time they were getting Universal Credit to the six months. Easy-to-read online guidance , which could potentially help more people access the service, has been published and simplifies the process including eligibility, what it can be used for and how it is paid back to the DWP. A Budgeting Loan is money p.
