Applying for a budgeting advance or budgeting loan

You could get an interest-free loan if you're on benefits and need help to cover a large cost.

If you get Universal Credit, you can get a budgeting advance. If you're on other benefits, you can get a budgeting loan.

You need to repay the loans.

Before you apply for the loan

Check if you can get any money that you do not have to pay back:

• make sure you're getting the right benefits with the Turn2us benefits calculator

• look for charitable grants with the Turn2Us grant search

• apply for a Crisis Grant for emergency costs

• apply for a Community Care Grant for household items, clothing and moving costs

• apply for Discretionary Housing Payment for rent or a deposit

What budgeting advances or loans are for

You can use them for:

• maternity costs

• clothing and shoes

• furniture and white goods, such as a fridge or washing machine

• rent in advance and costs of moving home

• costs of getting a new job

• travel costs

• funeral costs

Budgeting advances if you get Universal Credit

You can get a budgeting advance if you've been on Universal Credit for 6 months or longer.

If you've been on Universal Credit for less than 6 months, you can still get an advance if you've been on any of the following benefits for at least 6 months:

• Income Support

• income-based Jobseeker’s Allowance

• income-related Employment and Support Allowance

• Pension Credit

Check how much you can borrow on GOV.UK

You cannot get another budgeting advance if you're still paying back a previous advance.

How to apply

You can apply for a budgeting advance by:

• speaking to your work coach

• applying through your journal on your Universal Credit online account

• calling the Universal Credit helpline on 0800 328 5644 – it's free to call, and open Monday to Friday, 8am to 6pm

You’ll usually be told the same day if you’ll get a budgeting advance.

Paying back a budgeting advance

The loan is interest-free, so you only pay back what you borrow. You must repay the loan within 1 year.

Repayments usually come out of your benefits automatically, so your regular benefit payment will be less.

If your budgeting advance application is refused

You can ask for the decision to be reviewed. Contact a benefits adviser at Citizens Advice for help.

Budgeting loans if you get other benefits

You can get a budgeting loan if you've been getting one of these benefits for least 6 months:

• Income Support

• income-based Jobseeker’s Allowance

• income-related Employment and Support Allowance

• Pension Credit

Check how much you can borrow on GOV.UK.

You cannot get a budgeting loan if you're getting Universal Credit. Apply for the budgeting advance instead.

How to apply

Apply for a budgeting loan on GOV.UK

You can apply online or by using a paper form.

Paying back a budgeting loan

The loan is interest-free so you’ll only pay back what you borrow. You must repay the loan within 2 years.

Repayments usually come out of your benefits automatically, so your regular benefit payment will be less.

If your budgeting loan application is refused

You can ask for the decision to be reviewed. To appeal:

• write to the social fund within 28 days of the decision

• explain why you think the decision was wrong

• send the letter to the address on your decision letter

If your appeal is unsuccessful, you can ask the Independent Case Examiner to review the social fund’s decision.

If you need help to appeal, contact a benefits adviser at Citizens Advice.