DWP offers Budgeting Loans for eligible benefit claimants

The Department for Work and Pensions (DWP) provides financial support through a Budgeting Loan for people on certain benefits. This loan can help cover costs for clothes, food, and other necessities. To qualify, you must have been claiming specific benefits for at least six months. However, not all benefits make you eligible. Those on Universal Credit cannot apply, except in cases where they moved to Pension Credit. If you are repaying a Budgeting Loan or Crisis Loan, your eligibility may be affected. Remember, any money borrowed from a Budgeting Loan needs to be paid back in full. The minimum loan amount is £100. If you or your partner receive Child Benefit, you could borrow up to £812. Single individuals without Child Benefit can borrow up to £348, while couples can borrow up to £464. The loan amount depends on your ability to repay and your current savings. The Budgeting Loan is interest-free. This means you only pay back what you borrowed, and repayments are taken from your benefits. You'll receive a notification about your loan offer and the repayment amount if you accept. Typically, loans are paid off within two years. Certain claims, like New Style Jobseeker's Allowance or New Style Employment and Support Allowance, do not qualify for the loan. If you have over £1,500 in outstanding Crisis Loans and Budgeting Loans, you will also be ineligible. If you stop receiving benefits while still owing money, DWP will send information on how to manage your debt. Repayments can be made monthly or paid in full if you choose.