£812 DWP Budgeting Loan Approved! (No Interest) – Payment Date, Updates, Form, and Eligibility

By Ehsteem Arif

Published on:

Keir Starmer

In 2024, the Department for Work and Pensions (DWP) introduced significant changes to its Budgeting Loan program to better support individuals on certain benefits. Let’s cut into the details of the DWP £812 Budgeting Loan, including eligibility, application process, acceptable uses, repayment terms, and recent updates.

A Budgeting Loan is a financial aid provided by the DWP to help individuals cover the costs of essential items and services that might otherwise be unaffordable. This loan is available to those who have been receiving specific benefits for at least six months. Importantly, this is a loan, not a grant, meaning it must be repaid through deductions from future benefit payments.


Recent Changes

The DWP has extended the repayment period for Budgeting Loans from 12 months to 24 months. This change allows borrowers to repay the loan in smaller, more manageable installments, reducing financial stress on individuals and families.


To qualify for a Budgeting Loan, you must have been receiving one of the following benefits for at least six months:

  • Income Support
  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance
  • Pension Credit

Older claimants transitioning from Universal Credit to Pension Credit can count their time receiving Universal Credit towards the six-month requirement.

Who Cannot Apply?

You are not eligible for a Budgeting Loan if:

  • You are currently receiving Universal Credit; instead, you must apply for a Budgeting Advance.
  • You receive New Style Jobseeker’s Allowance or New Style Employment and Support Allowance.
  • You are involved in industrial action, such as a strike or lockout.
  • You owe more than £1,500 in total for Crisis Loans and Budgeting Loans.

Acceptable Uses

A Budgeting Loan can be used to pay for various essential items and services, including:

  • Furniture and household appliances (e.g., washing machine, cooker, fridge)
  • Clothing and footwear
  • Rent in advance
  • Moving house costs (e.g., removal van)
  • Essential home maintenance
  • Home security (e.g., new keys or locks)
  • Travel costs within the UK
  • Expenses related to securing a new job (e.g., interview attire, travel to interviews)
  • Pregnancy and childbirth costs
  • Funeral expenses

Loan Amounts and Repayment

The amount you can borrow depends on your circumstances:

SituationLoan Amount
With a partner£464
Claiming Child Benefit£812

The actual loan amount is also influenced by your ability to repay, your savings, and any existing repayments on Budgeting Loans or Crisis Loans.

Repayment Terms

The Budgeting Loan is interest-free and must be repaid within 24 months. Repayments are automatically deducted from your benefits. The amount deducted each week is based on your total income and what you can afford to repay. If you stop receiving benefits, the remaining balance of the loan must still be repaid.


Application Process

Applications for a Budgeting Loan can be submitted online or by post. The DWP advises applying online for a quicker decision. You will need to complete a form with your personal and financial details and specify how you would like to be notified of the decision (email, text, or letter).


After submitting your application, the DWP will notify you of their decision within:

  • Seven days if you requested notification by email or text.
  • 21 days if you requested notification by letter.

Accepting the Loan

If your application is approved, you will need to formally accept the loan before receiving the funds. The acceptance process varies depending on how you applied:

  • If you applied online, you will receive a text message or email with instructions on how to accept the loan.
  • If you applied by post, you can accept the decision by returning a letter.

The DWP Budgeting Loan is a valuable resource for individuals receiving certain benefits, helping them manage essential expenses. With the recent extension of the repayment period to 24 months, the DWP aims to reduce the financial burden on beneficiaries.


Knowing the eligibility criteria, application process, and acceptable uses for the loan can help eligible individuals make informed decisions and access the support they need. For more detailed information and guidance, visit the official GOV.UK website.


Who is eligible for a Budgeting Loan?

Individuals receiving certain benefits for at least six months.


What benefits qualify for a Budgeting Loan?

Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Pension Credit.

How long is the repayment period?

24 months.


How can I apply for a Budgeting Loan?

Submit an application online or by post.

What can a Budgeting Loan be used for?

Essential items and services like furniture, clothing, and moving costs.


Disclaimer- We are committed to fair and transparent journalism. Our Journalists verify all details before publishing any news. For any issues with our content, please contact us via email. 

Ehsteem Arif

A tax law expert with a knack for breaking down complex regulations into digestible insights. Ehsteem's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

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