DWP £812 Budgeting Loan 2024 Announced, Check Eligibility and Application Process

William Butcher
6 Min Read
DWP £812 Budgeting Loan 2024 Announced, Check Eligibility and Application Process

The Department for Work and Pensions in the UK has a program called DWP Budgeting Loans that can help people with their money. It is meant to help people with low incomes or certain benefits pay for one-time costs that they need to without using high-interest loans. Costs for things like moving, buying home items, traveling for work, giving birth, funerals, and more can be covered by these loans.

In his spring statement, Chancellor Jeremy Hunt said that starting in December 2024, people who get Universal Credit will have 24 months instead of 12 months to pay back new Budgeting Advance loans.

This change is meant to make bills easier to handle by lowering the amount that is due each month. This change has a direct effect on Budgeting Advances, which are like Budgeting Loans but for people on Universal Credit. It shows that the government is trying to help low-income households more successfully.

DWP £812 Loan Eligibility

People who want to get a DWP Budgeting Loan must meet all of the following requirements:

Receiving a benefit: You must have been getting at least one of these perks for at least six months straight before you apply:

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

Do not get Universal Credit: Can not be getting Universal Credit at the moment. People who get Universal Credit are told to apply for a Budgeting Advance instead.

Minimum Length: The six-month time during which the benefits are eligible must not have any breaks or changes in the claim status.

Debt Limitation: You can not owe more than £1,500 in total debts from earlier DWP loans, such as Crisis Loans and Budgeting Loans.

Exclusions:

People who get the New Style Jobseeker’s Allowance or the New Style Employment and Support Allowance cannot apply.

People who are taking part in strikes, walkouts, or lockouts at the time of entry are also not eligible.

Including Universal Credit: For people who switched from Universal Credit to Pension Credit, the time they spent on Universal Credit counts toward their six-month qualifying period.

You might not be able to get the loan amount you want if you have savings of more than £1,000 (or £2,000 for people or couples aged 63 and up).

DWP Budgeting Loan Amounts

How much you can take through a Budgeting Loan depends on your situation, such as your ability to pay back the loan, the amount of money you already have saved, and whether you already have another Budgeting Loan or a Crisis Loan. The biggest loans that can be given are as follows:

 

  • Single Applicants: Up to £348
  • Couples: Up to £464
  • Families claiming Child Benefit: Up to £812

The least you can borrow is £100, and the final offer may also depend on whether you have savings of more than £1,000 (£2,000 for people or couples where one partner is 63 or older).

 

Applying for a £812 DWP Loan

Making an application for a DWP £812 Budgeting Loan is a simple process that is meant to help people get money for important one-time costs. Here are the steps you need to take to apply:

Check Your Eligibility: Make sure you meet the requirements before you apply.

Choice of Application Method: You can fill out an SF500 form online or on paper. Most of the time, online applications are handled more quickly.

Send in your application: Fill out your application and send it in. To avoid delays, make sure all the information is correct.

Wait for the Decision: The DWP will look over your application and let you know what they think through the way of communication you chose.

After Applying

Following steps must be taken after you have submitted your application for a Budgeting Loan:

Notification: You will get a text message, email, or letter telling you about the loan choice. This message will tell you how much of a loan you have been offered and how to pay it back.

When you accept the loan deal, you must do so if you agree to the terms. How you do this will depend on whether you applied online or by mail.

Repayment: You do not have to pay interest on your repayments, and they are taken out of your benefits automatically based on your income to make sure you can afford them. The normal time to pay back the loan is within two years.

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