The UK Rules
Budgeting Loans

Budgeting Loan Online Application

DWP budget loans are interest free, welfare crisis benefits for vulnerable claimants who are on a low income. You are in the right place for the ultimate guide to Budgeting Loans.

These step-by-step guidelines explain how to apply for a social security loan and how long it takes to get paid.

BUDGET LOAN: The Department for Work and Pensions (DWP) administer advance Budgeting Loans through the Social Fund.

You can use Jobcentre Plus budget loans to pay for necessities and certain types of services.

The short-term, interest-free loans can help you to cover the cost of much needed essentials at home while you continue searching for a job.

You can use the money to buy clothes, footwear, and furniture. Budgeting Loans can also go towards advance rent payments or the cost of moving homes.

Note: In some cases, the borrowed money can help you repay hire purchase (HP) fees and certain other debts.

Budgeting Loan 2019 How Much Can I Get?

You must be claiming one of the qualifying benefits to apply for a Budgeting Loan. Certain other eligibility factors determine how much you can get.

So, here's how it works:

Most cash advances must be repaid in full, and within two (2) years. But, they are not taxable. The lowest amount you can borrow is £100 for this special job seeker benefit crisis loan.

The DWP Budgeting Loan is interest-free. That means you pay back the exact same amount that you borrow. But, you usually need to pay back the full amount that you borrowed within 104 weeks.

And the repayments...

Budgeting Loan repayments get taken 'automatically' out of your regular benefit payments. So, you must agree an alternative method to pay back the advance if your rights to benefits ends.

There are no specific age rules to make an application for a budget loan from the Social Fund. You can also read the help guide in Welsh language. Read 'Benthyciadau Trefnu' for information on DWP Budgeting Loan 2019.

Other Payment Schemes

There are several other types of payment schemes that do not need to be repaid. Check to see it you qualify for the Sure Start Maternity Grant, Local Welfare Provision (LWP) from the council, or Funeral Expenses Payment.

DWP Budgeting Loan Amounts

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As a rule, the total amount they think you can pay back limits the amount that you can borrow. The current Social Fund loan amounts are for the financial year 2019 in the United Kingdom.

DWP Budgeting Loan Online Application: How Much Can I Get and How Long Does It Take?For example, you could get the starting amount of £100 or a Social Fund loan up to the maximum of these three rates:

The advance payments have an upper limit. You cannot owe more than £1,500. The threshold applies to any Budgeting Loan or Crisis Loan.

In case you were wondering:

There are three determining factors on how much you can get (full or partial Jobseeker loan). It will depend on whether:

  1. After their consideration they believe you can pay back the loan in full.
  2. You have any savings over £1,000 (the amount is £2,000 if either you or your civil partner are 63 or older).
  3. You are already paying back an existing Budgeting Loan or Crisis Loan.

Budgeting Loan Time Scale 2019

Waiting time for the DWP to consider your application begins from the actual day that they receive it. It takes up to six (6) weeks to assess and then process a claim. The advance payments go straight into a bank or a building society account.

Note: They can use a Post Office Account or the Payment Exception Service if the normal process is not possible.

What about the effect on other benefits?

Jobcentre Plus Budgeting Loans or advances do not affect other claims or benefits. They are not counted as an income or included in the Benefit Cap.

What is the Benefits Cap?

It is a threshold that limits the total amount of social security that working-age people can receive from welfare benefits in the United Kingdom.

Jobcentre Plus Budgeting Loan Eligibility

What is the eligibility criteria and how to get a Budgeting Loan UK? You may qualify if either you or your partner are getting income-related benefits such as:

An example:

A partner would mean a person you live with who is your spouse, civil partner, or someone you live with as if you are a married couple.

What if you moved over from Universal Credit to Pension Credit? In this case, the time spent claiming Universal Credit would count towards the six month requirement.

Budgeting Loan eligibility depends on several other factors. They assess the urgency of your need and any health problems that you or your family may have.

How long have you been on benefits?

You must have been receiving one of the qualifying benefits for at least 26 weeks (6 months). You should also still be claiming the benefit on the day they assess your eligibility.

Note: As a general rule, they ignore a break in benefits claims up to 28 days. The rules are different for income support in Northern Ireland. You should check Budgeting Loan NI for further guidance.

Budgeting Advance Universal Credit

You may qualify for a Budgeting Advance if you get Universal Credit. The eligibility for a Budgeting Advance is different than for Social Loans. If you have income below a maximum threshold and you are:

The final decision depends on:

When You Cannot get a Budgeting Loan

  1. If you have involvement in industrial action at work (e.g. on strike, in a walkout, or in a lockout).
  2. If you already owe more than £1,500 in total for Crisis Loans and Budgeting Loans.

Note: You will be ineligible for a Budgeting Advance if an earlier Budgeting Loan or Budgeting Advance has not been repaid in full. This usually means within a 12 to 18 month time frame.

What Can Budget Loans DWP Be Used For?

DWP Social Fund Budgeting Loans can help you pay for any of the following items and services.

  • Clothing, footwear, household furniture, or 'white goods' equipment (e.g. a washing machine).
  • Essential travelling expenses or things that help you search for a job or to start work.
  • Improving, maintaining, securing your home.
  • Removal expenses if you move to fresh accommodation.
  • Maternity costs.
  • Funeral expenses.
  • Certain traveling costs within the United Kingdom.
  • Covering advance rental payments.
  • Repaying hire purchase or other debts (to pay for any of the above).

DWP Budgeting Loan Online Application

If you are applying for a social fund budget loan how long does it take 2019? The information in this section explains how to apply for Budgeting Loan online.

You can use the same application for a social funding loan as claiming for a budgeting advance. If you choose not to apply online, you will need to download and fill in the special Jobcentre Budgeting Loans form SF500.

What about appointees?

You will need to use the paper form if you are an appointee for someone claiming benefits and you are applying on their behalf.

PDF Download Form iconExternal link to DWP Budgeting Loan application form SF500 download on the GOV.UK government website.

Tracking Budgeting Loan in 2019

An online claim may take up to 20 working days to process. Tracking a Budgeting Loan application is easier if you include your mobile phone number on the document. That means they can send you a progress report by text message.

Following that, it usually takes twelve (12) working days for you to get the money once you accept the loan offer.

For example (taken from a recent forum post):

Info for anyone looking for recent timescales on tracking your budgeting loan....

I applied for a budgeting loan online on the 16th November and got a text same day saying they'll send me a letter with a decision within 20 working days. I was hoping to find a DWP budgeting loan tracker to get an update on my application.

Anyway, I got a letter saying it had been accepted on the 28th and I signed and posted back on the same day.

Today (7th) I got a text saying they'd received my acceptance form and it will be paid in on the 12th December.

It was an easy process and didn't really have to wait that long, but didn't stop me checking online to see how long I might have to wait.... And I couldn't find anything more recent than this post so... So, there's my experience.

Want to help others?

You can leave any helpful comments or information for other applicants who may be struggling. Go ahead and send us an email or you can join us on Facebook.

The Jobcentre Plus loans contact number and social fund DWP Budgeting Loan return address depends on where you live. You will need to provide your National Insurance number on the declaration.

Note: They also need details of who lives with you (partner and children) and any current debts or savings that you may have.

Where to Send Social Fund Budgeting Loan Form DWP?

The Social Fund send out a pre-addressed envelope with the claim form. Send the Budgeting Loan form to the address on the envelope (or Jobcentre Plus) after filling in the application.

Note: The address is also in the business section of the phone book under 'Jobcentre Plus'.

How to Send a Freepost Letter

The FREEPOST address is all you need to write on the envelope. In fact, Freepost is not a free service because the recipient pays the bill. In fact, The Freepost code informs the Royal Mail which account they should bill.

You can also get the claim form at your local Jobcentre Plus. Using postal methods can take longer than 6 weeks to process.

For example, they will mail the budget loan form to your address if you phone the Budgeting Loan helpline.

Social Fund Budgeting Loan Contact Number
Budgeting Loan Telephone Number: 0800 169 0140
Monday to Friday: (8am to 6pm)
Details on free and paid call charges in the UK.

You should allow at least five (5) working days if you are getting loans from Jobcentre and having the Budgeting Loan application form mailed to you.

Note: Crisis Loans are no longer available in England, Wales or Northern Ireland. There are other methods of support which include:

Paying Back a Budgeting Loan

Because Budgeting Loans are interest free you will pay back the same amount that you borrow. Paying back a Budgeting Loan is an automatic process. Repayments get taken from your benefits when they get paid.

How much benefit you receive, and what you can afford, determines the amount that you repay. The two tables show Budgeting Loan deductions based on weekly and fortnightly benefit payment schedules.

Repayments for Budgeting Loan £100 - £812 (weekly)

Your Weekly Benefit Payment Budgeting Loan Deductions
£57.90 £2.90 – £6.95
£73.10 £3.66 – £8.77
£87.50 £4.38 – £10.50
£102.15 £5.11 – £12.26
£109.30 £5.45 – £13.12
£114.85 £5.74 – £13.78
£300.00 £15.00 – £36.00

Repayments for Budgeting Loan £100 - £812 (fortnightly)

Your Fortnightly Benefit Payment Budgeting Loan Deduction
£115.80 £5.79 – £13.90
£146.20 £7.31 – £17.54
£175.00 £8.75 – £21.00
£204.30 £10.22 – £24.52
£218.60 £10.93 – £26.23
£229.70 £11.49 – £27.56

Note: As a rule you must repay a Budgeting Loan within 104 weeks (2 years). But, if you lose your rights to benefits you will need to arrange another method to pay back the loan.

How Many Budgeting Loans Can You Have in a Year?

The Social Fund does not stipulate how often you can apply. Even so, they have strict rules for taking out further loans. You can get another loan even if you already owe money from a previous arrangement.

But, they will consider your circumstances and the amount of debt that you already have. They will want to know that you can afford to repay a further loan before agreeing to it.

Useful Links:

Alternative options for dealing with debts
DWP short term benefit advance
How to report an illegal loan shark
Jobseeker's Allowance and low income benefits


Can You Still Get Crisis Loans from the Jobcentre?

Crisis Loans ended in March of 2013. Your local council is now responsible for helping in cases of severe financial hardship. They can issue Discretionary Funds to provide extra support. But, eligibility depends on your circumstances and the specific guidelines of your council.

How Much Do You Get for Christmas Bonus Benefit?

You might know it as the job seekers Christmas Bonus. But £10 DWP Christmas payments go out to most claimants who are getting certain benefits during the qualifying week.

How Long Does Budgeting Loan Take?

In general the Social Fund loan online process takes around 3 weeks after applying for Budgeting Loan. DWP usually reply with your acceptance after 2 weeks of your application. It may take up to one more week for the money to clear and show in your bank account.

You can help speed up the process by filling in Budgeting Loan forms accurately and completely. Hand delivering the documents to your local Jobcentre Plus could save you at least a week of waiting time.

Do You Qualify for Free NHS Prescriptions?

Some people get an exemption from paying NHS prescription charges. Check if your age, a low income, or medical grounds would make you exempt.

What is JSA Benefit?

Jobseeker's Allowance is the main unemployment benefit for those who are searching for work. The JSA benefit helps to cover living expenses for qualified claimants.

Can I Work and Claim Jobseekers Allowance?

In fact, working while claiming JSA is allowed and encouraged. But, it must be part time employment and job-hunting for longer working hours must continue.

Appeal Budgeting Loan Decision or Claim

Contact your Jobcentre Plus office for questions about Budgeting Loans. Allow 15 working days after posting your Jobcentre budget loan application form. They will need about two weeks to process your claim.

Here's the brutal truth about appeals:

You can request a Budgeting Loan decision review if you are unhappy with the outcome. Write to Jobcentre Plus within 28 days. You should provide a full explanation of why you think the decision is wrong.

You are also entitled to ask for a further review by the office of the Independent Case Examiner. This service is for those who still think the decision was wrong (after the initial review). This extra review should take no longer than 21 working days to complete.

DWP Social Fund Budgeting Loan How Long Does It Take and How Can I Apply?