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Belfast Live
Belfast Live
National
Connor Lynch

How DWP claimants can get £812 loan to help with the cost of essential purchases

Certain benefit claimants are able to request a £812 loan in order to help with the cost of essential purchases.

The interest free loan from the Department of Work and Pensions needs to be paid back over the course and is taken from your normal benefit payments.

The loan is named differently depending on what benefit you are claiming For Budgeting Loan, you may be eligible if you claim Income Support, Income Jobseeker's Allowance, Income related Employment and Support Allowance or Pension Credit.

Read more: DWP issues £301 Cost of Living Payment reminder for those on Pension Credit

If someone has moved from Universal Credit to Pension Credit, the DWP will add the time they were getting Universal Credit to the six months. However, the money must be paid back through benefits, reports Daily Record.

Even if you come off benefits, the loan will have to be repaid. A Budgeting Loan of Allowance can be used to help pay for essential things or services, such as:

  • Household white goods such as a washing machine, cooker, hoover or fridge
  • Clothing or footwear
  • Rent you have to pay in advance
  • Any moving house costs such as a removal van
  • Essential work needed on your home, including maintenance
  • Costs due to pregnancy and childbirth
  • Costs for a funeral

In both cases, the lowest amount you can borrow is £100, and you could get up to the amounts below, depending on your circumstances:

  • £348 if you’re single
  • £464 if you have a partner
  • £812 if you or your partner claim Child Benefit

How much you could get depends on whether you:

  • Can pay the loan back
  • Have savings of more than £1,000 (£2,000 if you or your partner are 63 or over)
  • Are paying back an existing Budgeting Loan or Crisis Loan

The DWP will either send you an email, text or letter letting you know whether or not you can get a Budgeting Loan and you need to ‘accept’ the decision before you get the money. Once you have accepted the offer, the DWP will pay your money into your account.

To be eligible for Allowance, you must be getting Universal Credit for six months or more, earn less than £2,600 in the past six months, or paid off any previous Budgeting Advance loans.

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