A budgeting loan is a one-off payment which could help with extra costs if you claim certain benefits.

You don’t pay any interest on a budgeting loan.

You may be able to get a loan to pay for housing-related costs such as:

• rent or rent in advance
• furniture and household equipment
• removal expenses when you move home
• essential home improvements, maintenance or security.

You can also apply for a budgeting loan for other items such as clothes and shoes, maternity costs and funeral costs.

If you have hire purchase or other loans taken out for any of these purposes, budgeting loans can also be used to repay these loans. This includes repaying expensive payday loans.

To get a budgeting loan, you or your partner must have been claiming any of these benefits for the past 6 months:

• income support
• income-based jobseeker’s allowance
• income related employment and support allowance
• pension credit

Your chances of getting a loan and how much you might get will depend on your personal circumstances.

The minimum amount you can apply for is £100. The maximum amount you can get is:

• £348 if you’re single
• £464 if you have a partner but no children
• £812 if you or your partner claim Child Benefit.

You won’t be given a budgeting loan if you are not able to repay it.

If you claim universal credit (UC) you cannot apply for a budgeting loan. Instead, you can ask for a budgeting advance , if you have been receiving UC for 6 months or more.

A budgeting advance is different to an advance payment of your UC, which is a payment to help you whilst you are waiting for your first payment of UC.

For more information on advances whilst on UC see here, or contact your local Jobcentre Plus office

You can apply at your local Jobcentre Plus office, either in person or by telephone.

Claim forms are also available online from Gov.uk.

You must pay back what you borrow within 2 years.

A fixed amount is taken out of your benefits until the loan has been repaid.

If your application for a budgeting loan is refused you can ask for the decision to be looked at again (“reviewed”).

To do this, you must:

• apply in writing
• apply within 28 days of the date the decision was given
• explain clearly the reasons why you think the decision was unfair.

Ask the Independent Review Service to look at your application again if the decision is not reviewed in your favour. The IRS can change the decision if it was wrong.

There may be other help you could get if you need money in a hurry. Find out more about sources of cash in a crisis.

We are sorry that we cannot provide this information in Welsh, however if you would like to speak to an adviser in Welsh please contact 08000 495 495.