Budgeting Loan
A Budgeting Loan is an interest free loan intended to help spread the cost of intermittent expenses that you are unable to pay. It may help you pay for:
- furniture or household items
- clothing and footwear
- rent in advance or removal expenses (to secure new accommodation), or
- expenses associated with looking for or starting work.
You will have to pay back a budgeting loan at a set weekly amount, depending on what other financial commitments you also have. The repayments will be deducted from your benefit.
In some circumstances you may qualify for a Community Care Grant, which does not have to be paid back. If you are not sure, you should always apply for both.
Do I qualify?
You may be eligible for a Budgeting Loan if you are getting any of the following:
You or your partner must have been getting one of these benefits or entitlements, or payment on account of one of them for at least 26 weeks.
If you have more than £1000 savings (£2000 if you are aged 60 or over) you will not be able to receive the maximum loan. Any loan will be reduced pound for pound by any savings you have over £1000 (or £2000 if you are over 60).
To find out whether you could qualify, you can contact the Benefits Maximisation Service for a full benefits check.
How much is it?
The size of loans are calculated according to a strict formula. Jobcentre Plus Offices usually agree a set amount for a single person, but this amount can vary during the year. A couple will usually get 1 1/3 times the single person amount, and someone with children will get 2 1/3 times the single person amount.
If you have any outstanding budgeting loans which you are still repaying, the maximum amount you can get is reduced by the amount of the outstanding loan.
How do I apply?
More information can be found in the Grants and Loans from the Social Fund leaflet (264kb).
You can get a Budgeting Loan form from any Job Centre Plus office.
You can download a Budgeting Loan form in PDF format. The form comes with notes that will help you fill it in and tell you where to send the completed form.
The Benefits Maximisation Service can provide personal advice on what you may be entitled to and help you make a claim. For more information go to Benefits Maximisation Service.
What if I am not satisfied with the decision?
Decisions about how much you will have to repay each week are not subject to review. However, you can ask for payments to be reduced by writing to your local Jobcentre Plus. The Benefits Maximisation Service can help you with this.
If you are refused a social fund payment or think it should have been paid at a higher rate you can write asking for it to be reviewed within 28 days from the date on the decision. This means that a different Decision Maker will look at your claim again.
It is very important that you reply within 28 days, as you may not be able to challenge the decision otherwise.
If the second Decision Maker cannot revise the decision in your favour, you will be asked if you want an interview by telephone. This means that you can explain why you think the decision is wrong in more detail, and the Decision Maker can ask questions. You can ask for the interview to be held at a Jobcentre Plus office, or in your own home if using the telephone is difficult for you.
The Benefits Maximisation Service can also hold telephone interviews on your behalf.
If you are still unsatisfied once the revision has taken place you can ask for a further review by the Independent Review Service. This usually has to be on a form called ISR1, which is available from any DWP office. You can also ask the DWP to post one to you. Again, you must make your appeal within 28 days of the date of the new decision.
Our Benefits Maximisation Service can help you with revisions and appeals.
What if my circumstances change?
Your claim for a social fund payment can only be considered based on your circumstances at the time of the claim. If your circumstances have changed, so that you now qualify for a payment, you will need to make a new claim.
For an easy way to find out which benefits might apply to you and your circumstances go to What can I claim?
The Benefits Maximisation Service can provide personal advice on what you may be entitled to and help you make a claim. For more information go to Benefits Maximisation Service
Disclaimer
Although every effort is made to ensure the information on these pages is accurate and up to date, it should not be treated as a complete and authoritative statement of the law.