UK
Government Departments -Work and Pensions
Budgeting
Loans
- Do you qualify for a Budgeting
Loan?
If
you're on a low income and need help with certain important costs,
you may be able to get an interest-free Budgeting Loan from the
Social Fund that you pay back.
Who
is eligible?
You may be able to get a Budgeting Loan if you or your partner have
been claiming or getting payment for one of the following benefits
for at least twenty six weeks:
- Income
Support
- income-based
Jobseeker's Allowance
- Pension
Credit
and
you need help to pay for any of the following:
- furniture
or household equipment
- clothing
or footwear
- advance
rent or removal expenses for a new home
- travelling
expenses
- things
to help you look for or start work
- improving,
maintaining or securing your home
- repaying
hire purchase or other debts you took out to pay for any of the
above
How much do you get?
You can apply to borrow between £100 and £1,500. The
final amount of Budgeting Loan you get will depend on:
- how
long you've been on benefit
- the
number of people in your household
- any
existing money you owe to the Social Fund
- your
ability to repay the loan
- your
savings - your award will usually be reduced by the amount of
any savings you or your partner or civil partner have above £1,000
(or £2,000 if one or both of you is over 60)
The
following can't be taken into account:
- the
urgency of your need
- any
health problems you or your family might have
How it's paid
The loan is usually paid into your bank, building society or other
account provider's account that you have nominated.
How
do you repay it?
Your repayments, which are worked out at the time your loan is agreed,
are usually automatically taken out of your benefit. If you're not
getting benefits, another method will be agreed.
You
normally have to repay a Budgeting Loan within 104 weeks. The repayments
are interest-free which means you only pay back what you borrowed
and no more.
Effect
on other benefits
A Budgeting Loan award does not count as income and will not affect
other benefit you're getting.
How
to apply
You can contact Jobcentre Plus, or your pension centre and ask them
to send you claim form SF500.
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
