Turned Down For A Budgeting Loan – What Next?

A budgeting loan is designed to assist those that are on a low income to meet extraordinary costs that do not crop up often, are essential to everyday life, and would be difficult to pay especially for those on benefits. There are certain criteria that you must meet in order to be accepted for such a loan and, following application, you will receive a decision by letter from the DWP.

Looking through forums and advice sites, one of the most common reasons for being rejected a budgeting loan is the fact that the applicant does not meet the full requirements. Specifically, your application will be rejected if you have not been in receipt of the appropriate benefits for a minimum of 26 continuous weeks. Read the full list of budgeting loan eligibility criteria.

When you receive a response from the DWP you will either receive one or more offers for the loan or you will receive a rejection letter. You do have the right to ask for the decision to be reviewed but if you fail to meet any of the eligibility criteria, including being in receipt of the right benefits, your review will give the same outcome.

You have the right to request a review within 28 days and by writing to the Jobcentre Plus. You should explain why you believe the decision was an incorrect one and if this review still comes up unsatisfactory then you can request a further review by the Social Fund Inspector. The Inspectors are independent from the DWP and you can download the appropriate form from their website here:


If you are turned down for a budgeting loan then you may need to consider other options. Steer clear of high interest debts like payday loans because they can and often do lead to further financial trouble. An IVA, or Individual Voluntary Agreement, may be a good way of reducing your monthly expenditure because it could lead to a reduction in your monthly outgoings but there are ramifications to an IVA because they remain on your credit file for 6 years from the date of acceptance. You can find out more information on IVA applications on the BudgetingLoan.co.uk site.

How Many Of My Creditors Must Agree To An IVA?

Typically, a debtor must have a minimum of £10,000 of debt with at least two creditors in order to be considered a suitable fit for an IVA. An Insolvency Practitioner will then attempt to come to an agreement with those creditors to accept regular repayments totalling a reduced amount of the debt. Certain criteria must be met for the IVA to be considered legal and effective; not all of your credits need to agree to the IVA schedule for it to go ahead, however.

Creditors that are owed 75% or more of your debt must agree to the proposal. If you owe 5 creditors £3,000 each then if four of the five creditors agree, your IVA will be accepted and you will enter into agreement to pay the agreed amount.

If you only have two creditors for roughly the same amounts of money then your Insolvency Practitioner will have to ensure that both of them agree to the repayments. Your Practitioner will work with you to determine who and how much money you owe and they will attempt to draw up a repayment agreement with each to ensure the greatest chance of approval. If a proposal is rejected then your Insolvency Practitioner will usually work with creditors individually to ensure that an agreement is reached eventually.

Can I Have A 2nd House With An IVA?

An IVA is a formal agreement meant to reduce the levels of debt a debtor has. It is considered a final step and alternative to bankruptcy and an Insolvency Practitioner will work with you to ensure that it is the best option. A second house is likely to be seen as a means of raising capital to pay off your debt and you may be expected to realise the capital in your assets in order to repay debts. As such, it is unlikely that you will be allowed to keep a second home when entering into an Individual Voluntary Arrangement.

In such circumstances you should speak to a professional Insolvency Practitioner or other personal finance expert. They will discuss your insolvency options with you and help determine what your best options are.

In an IVA, your Insolvency Practitioner will attempt to come to a formal agreement with creditors. A majority of creditors must agree to the terms of the agreement and if they are aware of the existence of a second home or income from a second home then they may demand that the property be sold in order to meet your financial requirements and pay off the debt that you have accumulated.

How Soon After My IVA Can I Get A Mortgage?

An IVA will remain on your credit file for a total of six years from the date that you first come to the arrangement. If your IVA, therefore, lasts for five years before you have repaid all the debt then you will still have to wait for another year before it comes off your credit record. What’s more, you are likely to have to rebuild your credit rating before you will be accepted for a mortgage.

An Individual Voluntary Agreement is reported to the credit bureaus as soon as it is agreed. It will remain there for a total of 6 years. Most IVAs last for a period of 5 years which means that your IVA will be visible on your credit report for at least one more year after you have finished making your repayments.

Mortgage lenders, and other lenders, are more reluctant to lend money now than ever before. Even sub-prime lenders will usually require that you can show good credit rating. This means that there is evidence of having taken out debt and kept up repayments. Once you have finished paying off your IVA you will need to start rebuilding your credit rating before you are likely to be accepted for any kind of credit.

It is likely to be at least six years from the date of the start of your IVA before you can take out a mortgage.

Where Can I Find The Budgeting Loan Return Address?

A budgeting loan is an interest free loan that offers access to cash directly from the government funded Social Fund. It enables those on a low income to borrow money in order to pay for purchases of things like clothes, furniture, and even travel expenses to get to a new job. The form is usually available through your local Jobcentre Plus or you can find it here.

The Jobcentre Plus budgeting loan is offered by the Department for Work and Pensions via the Jobcentre Plus and this is where you should send your completed return. There is a central office that deals with applications which means that you can use your local office wherever you are located in the country.

To find the budgeting loan return address take a look in your local phone book under the business section. If you contacted the Jobcentre Plus to request your form then you can use the same address and your application will be forwarded on to the appropriate department.

These loans are a form of interest free loan from the Social Fund that are provided specifically to families and individuals that are on a low income and have been claiming certain benefits for 26 weeks or longer. Browse the rest of the site to find out more about the budget loan process.

How Can I Check Progress Of Budgeting Loan Applications?

A Jobcentre Plus budgeting loan is designed to assist individuals and families on low income to be able to afford emergency expenses that crop up; expenses that those on income related benefits are usually unable to budget for. This may include the purchase of new furniture and new clothes, or it may provide money to help find work or to pay for covering expenses during the first stages of employment. As such, the budgeting loan application is designed to be fast and efficient.

Unfortunately, it is not possible to check the progress of your social fund loan online and the only way that you can really check progress of budgeting loan applications is via the Jobcentre Plus contact number. However, you should allow enough time for the application to run its course before you make contact and try to acquire an update on progress.

The initial application can take around two weeks before you are given a response. If you accept one of the offers given then you will usually receive the money within a week but you should allow another couple of days before ringing.

If you want to check the progress of your application and haven’t heard within these deadlines then call the Jobcentre Plus budgeting loan phone number to find out.

Am I Entitled To A Budgeting Loan On Incapacity Benefit?

There are a number of criteria that you must meet in order to be eligible to apply for a budgeting loan. One of the main criteria is that you have to be on one of a number of different benefits and you must have been claiming that benefit for a period of 26 weeks, or half a year. Your application will also depend on whether you owe any other money to the Social Fund, whether you have any savings, and what you need the money for.

The good news is that a budgeting loan from the DWP is offered to those that have been claiming incapacity benefit for 26 weeks or more.

Please note that no new Incapacity Benefit claims have been accepted since the end of January 2011 and individuals should now be claiming the Employment and Support Allowance benefit instead. In many ways this is a change of name and if you are claiming Employment and Support Allowance and have been for 26 weeks or more then you may be entitled to apply for a DWP Budgeting Loan.

Complete a budgeting loan application form and submit it to your local Jobcentre Plus office to have it reviewed. The process is quick and simple, and you should have a decision within two weeks of applying.

Can I Apply For A Budgeting Loan To Help Me Move House?

A budgeting loan is an emergency loan that comes from the government via the Social Fund. It is arranged and managed by the Jobcentre Plus and it can be used for a number of different purposes. You will need to outline its use when you complete the application and the adjudicator will determine whether it really is a required use.

You can use the fund to pay for repairs to your home or to secure your home. You can also use it to pay for any expenses associated with finding and even starting a new job. If you, or your children, need new footwear or clothing then you can apply for a DWP budgeting loan too. Alternatively, it is possible to apply for the loan in a bid to help you meet the costs of moving.

Moving house is never a cheap option and even ignoring the costs of buying or letting the property you will need to consider other costs too. Happily, the budgeting loan can be used for this purpose. If you have already moved and had to borrow money to make the necessary payments you may still be able to receive the funds from a budgeting loan to help make the necessary repayments.

More questions on budgeting loans?

What Qualifies You For A Budgeting Loan From The DWP?

A budgeting loan from the DWP can prove a highly beneficial means of accessing money that you need for an emergency payment. Not everybody is entitled to apply for these loans, which come from the Social Fund and are arranged by the Jobcentre Plus, but if you claim certain benefits and have done for a certain period of time, and you do have a genuine need for the money, then you may well be eligible to apply.

You must have been claiming Jobseeker’s Allowance, income related Employment and Support Allowance (formerly known as Incapacity Benefit), Income Support, or Pension Credit for the past 26 weeks in order to claim. However, this isn’t the only criteria that you must meet to be considered.

You need to have a genuine requirement for the money and it must be for furniture, clothing, moving costs and advance rent, travel expenses, money to help you find gainful employment, home costs, maternity or funeral costs, or to pay off debts that you have accumulated to pay for any of these things.

The amount you receive will depend on the reason for borrowing the money, your savings, and whether you already owe money to the social fund. Also, whether you are submitting a solo or joint application will also be taken into consideration.

It’s Two Weeks Since My Budgeting Loan Application – Has It Been Turned Down?

Many people apply for budgeting loans as a means to meet unexpected and often emergency expenses. The loan can be used for a huge variety of purposes including expenses for moving to a new home and this means that, if you have applied, then you are no doubt anxious to hear back. Fortunately, the Jobcentre Plus has given timeframes in which you should hear back and if you don’t you can contact them to enquire.

They say that every application will be answered within 9 working days of them having received your initial application. As such, after two weeks, you should have heard back by now. You can, by all means, contact the Jobcentre Plus to find out why you haven’t had a response but don’t assume that this means the response is bad news. You should hear back within this timeframe whether your application is successful or not.

There are certain times of year when more people apply for this type of loan and, if you too apply then, you will be more likely to experience a delay. If you submit your budgeting loan application during a quiet period then there is a good chance you will hear days before the two week deadline is up. If you haven’t heard back after two weeks then use the Jobcentre Plus budgeting loan contact number to call them.