Budgeting Loan for 2013

If you need to pay for essential items, such as furniture, clothes, hire purchase debts or rent, you can take out a budget loan. Currently, a budgeting loan for 2013 are unchanged from previous years - the smallest amount you can take out is £100, whereas the upper limit is discussed and provided at the discretion of the government.

Who is eligible?

To apply for a budgeting loan in 2013, you must:

  • Be on income support, or;
  • Be on income based jobseeker's allowance, or;
  • Be on income based support allowance, or;
  • Receive pension credit.

You can only apply for a budgeting loan if you have been on the above for 26 weeks or more. Unlike other loans, a budgeting loan in interest free, so you'll only pay back what you take out.

What can I get?

Depending on the type of benefits you receive, your income and circumstances, you may receive more from your budgeting loan. Budgeting loan rates for 2013 are dependant on:

  • Whether you're single or making a joint benefit claim;
  • How many children you have, if any;
  • If you have any savings over £1000;
  • If you already owe money to the government or the social fund.

Usually, loans are paid directly into your bank account. However, if you don't have a bank account and receive your benefits via a different method, you can speak to an advisor about how to receive your budgeting loan.

What can the loan pay for?

The loan can only be used to pay for:

  • Rent;
  • Household equipment, such as furniture;
  • Expenses when moving home, such as hiring a moving van;
  • Travel expenses;
  • Clothes, or other items to help you start and gain employment;
  • Maintaining or securing your home;
  • Maternity and funeral costs;
  • Paying hire purchase debts.

How can I apply?

You can apply for a budgeting loan in 2013 by downloading an application form from Gov.uk/budgeting-loans and taking the complete form to your local Jobcentre. You can also visit your local Jobcentre Plus to obtain an application form, or speak to an advisor about your loan. If you are unhappy with a decision made regarding your budgeting loan, you can ask your application to be reviewed within 28 days by visiting your local Jobcentre.

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