A Guide To Budgeting Loan Eligibility

A budgeting loan is a tax free form of loan offering money provided by the Social Fund and offering assistance to meet payments that those on a low income may not necessarily be able to budget for. Low income individuals and families are able to apply for the loan, which is in actual fact just one of several forms of loan offered by the Social Fund and through the Department of Work and Pensions, or DWP. If you are considering applying then you should first determine whether or not you are eligible for the loan:


You must be claiming one of the various income related benefits that are available. This includes the following:

• Income Support
• Income Related Employment and Support Allowance
• Income Based Jobseeker’s Allowance
• Pension Credit

Furthermore, you will only be eligible for a DWP budgeting loan if you have been claiming one of these benefits for a period of 26 weeks or more. A short break of a few days in the middle of your claim period may still be accepted but longer breaks will not.

Loan Fund Use

Budgeting loan eligibility is also determined by how you will use the funds from the loan. It is designed as an emergency loan and is usually provided for any emergency requirement that you are unable to budget for in a typical month. Uses include:

• Buying new clothes
• Buying new furniture
• Covering expenses to look for work
• Covering expenses to attend your new job
• Travelling expenses
• Help with funeral costs
• Help with maternity expenses
• Advance rent
• Removal expenses to move to a new home

Social Fund Debts

You may apply as an individual or with your partner. However, during your application, it will be determined whether or not you already have any outstanding debts with the Social Fund. This may mean through another budgeting loan or through a crisis loan. Typically, any one individual may only be allowed up to £1,500 in Social Fund debt and if you have an existing Crisis Loan then this will be taken into account when calculating the amount you are able to borrow.

Applying For Your DWP Budgeting Loan

If you meet all of these budgeting loan eligibility criteria and you need to access the money that may be made available from such an emergency loan then you can apply now. Download the form via the BudgetingLoan.co.uk website and you could have access to the money provided within a few weeks.

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