Thousands of households across the UK could be in line for a vital financial boost from the Department for Work and Pensions (DWP). This support comes in the form of a one-off payment known as a Budgeting Advance, which can provide up to £812 to help cover unexpected costs.
Who is Eligible for the DWP Budgeting Advance?
You can apply for this loan if you have been receiving one of five key benefits for at least six months. The qualifying benefits are:
- Universal Credit
- Income Support
- Employment and Support Allowance (ESA)
- Pension Credit
- Jobseeker’s Allowance (JSA)
Your eligibility also depends on your income and savings. Your earnings must not have exceeded £2,600 (or £3,600 for couples) over the previous six months. Furthermore, if you have savings or capital over £1,000, the amount you can borrow will be reduced by the excess. For example, having £1,250 in savings would mean a £250 reduction in your advance.
What Can the Payment Be Used For?
The Budgeting Advance is designed to help people manage unforeseen financial pressures. The loan can be put towards a wide range of essential costs, including:
- Repairing or replacing a broken fridge, cooker, or other essential appliance.
- Covering costs for home repairs or for moving to a new home.
- Paying for maternity expenses, funeral costs, or other essential items.
- Covering work-related expenses such as travel, uniforms, or tools.
The minimum amount you can borrow is £100. The maximum you can get depends on your circumstances:
- Up to £812 if you are part of a couple with children, or are a single parent.
- A lower maximum applies if you are single or part of a couple with no children.
A 'child' is considered to be anyone under 16, or a 'qualifying young person' under 19 in full-time non-advanced education.
How to Apply and Important Considerations
Applications for a Budgeting Advance must be made by phone to the DWP. A work coach will assess your application on the same day, looking at whether you can afford the repayments and the amount of capital you hold.
It is crucial to understand that this is a loan, not a grant. Repayments are taken directly from your ongoing benefit payments, so you must be confident you can manage with the reduced amount until the loan is fully repaid.
This financial support can be a lifeline for those facing sudden, necessary expenses, providing a structured way to borrow money without turning to high-cost lenders.
