Social fund budgeting loans
A budgeting loan is the equivalent of a budgeting advance for people who claim means-tested benefits other than UC. The loan is repayable, usually by deduction from ongoing benefit entitlement. The minimum amount of a loan is £100. The maximum is £348 if you are single, £464 if you are a couple and £812 if you or your partner claim child benefit. If you have other social fund debts, your total debt cannot exceed £1,500.
You may get a budgeting loan if:1Social Fund Directive •you are getting pension credit, income support, income-based jobseeker’s allowance or income-related employment and support allowance, and have been getting one of these benefits for the past 26 weeks (disregarding one or more breaks of 28 days or less);
•you are not involved in a trade dispute; and
•you do not have too much capital (the limit is £1,000, or £2,000 if you or your partner are aged 63 or over).
The budgeting loan must be for one or more of the following:
•furniture and household equipment;
•clothing and footwear;
•maternity expenses;
•funeral expenses;
•rent in advance and/or removal expenses;
•improvement, maintenance and security of the home;
•travelling expenses;
•expenses associated with seeking or re-entering work;
•hire purchase and other debts for any of the above items.