Budgeting Loan – 0843 487 1824
A Budgeting Loan from the Department for Work and Pensions, or DWP, helps people meet essential expenses. Sometimes the loan is for replacing broken household equipment, buying essential furniture, helping to buy baby equipment, paying for removal costs or to pay for a funeral. Such expenses are difficult to meet if claimants have been living on benefits for some time. The Budgeting Loan has to be repaid over two years but, unlike commercial loans or credit cards, there is no interest charged. The Social Fund contact number team can deal with these problems.
Who can apply?
The loan is only available to those people who have been in receipt of certain income-related benefits for at least six months, or 26 weeks to be exact. People who have been getting income-related Income Support, Employment Support allowance, JSA or Pension Credit can apply once the 26 weeks have passed. There is no point in trying before this date as the application will be rejected.
Amounts available depend on each claimants circumstances, but the smallest loan is £100. Factors such as being single, having children, existing loans from the DWP and ability to pay the loan back are all taken into account.
Applying for a Budgeting Loan
The application form can be obtained from a Jobcentre Plus or online. The claimant has to state how much they would like to borrow, and there are some tick boxes to show what the loan is to be used for. If the loan is approved, the claimant will get an offer with details of how much is to be loaned, and how the loan is to be repaid. It is usual for the repayments to be taken from benefits, but the claimant has to accept the loan and the repayment schedule first. Once the agreement has been signed and returned, the funds will be released into the claimant’s bank account.
The Budgeting Loan scheme has enabled many families and individuals to cope with expenses without having to pay interest on a loan. The DWP recoups the money over a fairly long period taking an agreed amount from benefit payments. The application process is straightforward and claimants can get a decision in approximately two weeks.