Table of Contents
- Eligibility
- Amounts Available
- Applying for a Budgeting Loan
- Extending a Budgeting Loan
- Repaying a Budgeting Loan
Eligibility
In order to qualify for a Budgeting Loan, you must be in receipt of certain benefits from the Department for Work and Pensions (DWP). These include Income Support, Pension Credit, Universal Credit, Job Seeker’s Allowance, Employment and Support Allowance and Tax Credits. You must have been in receipt of the benefit for at least 26 weeks.
Amounts Available
The amount of Budgeting Loan available depends on your individual circumstances, with the maximum amount of £1,500. If you have had a previous Budgeting Loan within the last 26 weeks, you may not be eligible for the full amount. In some cases, the amount may be reduced if you have a partner or other household members who are on benefits.
Applying for a Budgeting Loan
You can apply for a Budgeting Loan by completing an application form, which you can get from your local Jobcentre Plus office. You need to provide evidence of your income and outgoings, such as payslips, bank statements and rent books. You will also need to provide proof of identity, such as a passport or driving licence.
Extending a Budgeting Loan
If you need more time to repay your Budgeting Loan or want to increase the amount of the loan, you can apply for an extension. This must be done before the original loan has been fully paid off. You will need to provide evidence of your income and outgoings, as well as evidence of your expenses for which the loan was taken out. You may also need to provide proof of identity.
Repaying a Budgeting Loan
The repayment of a Budgeting Loan is made via direct debit from your bank account. The loan is generally paid back over 104 weeks, with payments made every two weeks. The amount of the repayment is based on your income, outgoings and the amount of the loan. If you have a partner, they may be asked to contribute to the repayment of the loan.
Can I get 2 Budgeting loans? No, you are only eligible for one Budgeting Loan at a time. You must repay the loan before you can apply for another one.
How many budgeting advances can I get? You can only get one Budgeting Loan at a time and must repay the loan before you can apply for another one.
Can I get another Budgeting Advance after paying one off? Yes, you can apply for a further Budgeting Loan once the previous loan has been fully repaid.
Why am I not eligible for a Budgeting Advance? You may not be eligible for a Budgeting Advance if you have not been in receipt of certain benefits for at least 26 weeks or if you have had a previous Budgeting Loan within the last 26 weeks.