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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. If you're on a low income, there are grants you could be eligible for, which you will not have to pay back.

Before you apply for the loan

You could get help with money you do not have to pay back.

Check you're getting all the benefits you're eligible for with the Turn2us benefits calculator.

If you’re on benefits or a low income, you could get a charitable grant. Use Turn2Us to search for grants in your area.

If you need money in an emergency, you could get a crisis grant.

To pay for household items, clothing and moving costs, apply for a community care grant.

If you get Housing Benefit or Universal Credit and need help with rent or a deposit, apply for a Discretionary Housing Payment.

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

Getting a budgeting advance

You can get a budgeting advance if you're on Universal Credit and you've been getting one of these benefits for at least 6 months:

  • Universal Credit

  • 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 will not get another budgeting advance if you're still paying a previous advance back.

How to apply

You can apply for a budgeting advance by:

  • speaking to your work coach

  • applying through your journal on your 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. It'll help if you can give extra evidence to show why you should get the advance.

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

Getting a budgeting loan

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

Visit GOV.UK to apply for a budgeting loan.

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.

Last updated: 4 October 2022

Housing laws differ between Scotland and England.

This content applies to Scotland only.

Get advice if you're in England