Facing rising living costs? The DWP is offering immediate financial help to those in need, with new extended repayment terms. But what are the exact conditions to qualify, and how can you apply? Read on to find out.
DWP Is Giving Immediate £800 Payment for Living Costs – Repayment Time Extended!
By Arezki AMIRI
Published on 6 December 2024 08:00
Households facing financial difficulties can now access loans of up to £800 to cover urgent and essential costs. This support is provided by the Department for Work and Pensions (DWP), and the loan is repaid in monthly instalments directly deducted from the claimant's ongoing benefits. The scheme is designed to help people dealing with unforeseen and pressing financial needs.
DWP Immediate Financial Support for Eligible Households
Budgeting loans are available to individuals receiving certain benefits, including Income Support, Jobseeker’s Allowance (Income-based), Employment and Support Allowance (ESA), and Pension Credit. If you are a recipient of Universal Credit, a similar scheme known as a Budgeting Advance is also in place.
Applications for loans can be processed on the same day, with funds sent directly to the claimant’s bank account. However, some claimants may need to wait slightly longer for approval, depending on individual circumstances.
Eligibility Conditions and Exact Loan Amounts
To be eligible for this loan, applicants must have been receiving one of the qualifying benefits for at least six months. The minimum loan amount is £100, but higher amounts can be granted depending on the applicant's situation. The exact amounts available are as follows:
- £348 for a single person
- £464 for a couple
- £812 for families with children
These loans are intended to cover urgent needs, such as:
- Replacing broken household appliances (fridges, cookers, washing machines, etc.)
- Purchasing essential clothing or furniture
- Work-related expenses (e.g. buying a uniform or professional tools)
- Emergency home repairs
- Transport costs to get to work
- Maternity expenses, funeral costs, deposit for rent, or moving costs
However, Universal Credit claimants are subject to certain restrictions. They cannot apply for a loan if their earnings have exceeded £2,600 (or £3,600 for couples) in the past six months, nor if they are currently repaying a similar loan. For other benefits, loans cannot be granted if the claimant has existing debts of more than £1,500 or is involved in industrial action.
More Flexible Repayment Terms
As of 4 December 2023, the DWP has extended the repayment period for Universal Credit recipients to two years, aligning it with the terms available to other benefits claimants. This extension aims to ease the financial pressure on recipients, offering them more flexibility to repay the loan without significant strain on their daily budget.
Restrictions and How to Apply
Those interested in applying for a Budgeting Loan can do so online via their Universal Credit account, at the local jobcentre, or by calling 0800 328 5644. Other benefit recipients (outside of Universal Credit) can also apply online or by downloading a dedicated form.
Here are the key eligibility restrictions for Budgeting Loans:
- Universal Credit claimants are ineligible if their income has exceeded £2,600 (or £3,600 for couples) in the past six months.
- Claimants must not currently be repaying a similar loan.
- Claimants should not have more than £1,500 in outstanding debts from previous loans.
These Budgeting Loans offer a lifeline to low-income households facing unexpected expenses, but the strict eligibility criteria and limits on loan amounts mean that access may be restricted for certain groups.