DWP loans worth up to £812 are available for certain benefit claimers

thousands of Britons Department of Work and Pensions (DWP). This loan is intended to help pay for essential products and services that could not otherwise be paid for.

Anyone who has claimed income support, income-based job seeker benefits, income-related employment and assistance benefits, or pension credits for more than six months may be eligible for a loan. daily record report.

Those who claim Universal Credit are not eligible for loans, but may instead be eligible for budgetary allowances. New easy-to-read online guidance has been published that may help more people access services, simplifying the process of eligibility, what you can use, how to repay DWP, and more.

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What is a Budget Loan?

A budget loan is money that people who have claimed the aforementioned benefits for at least six months can apply for financial assistance from the DWP.

It’s important to note that since it’s a loan, the money has to be repaid and it’s done through a benefit.

Who Can’t Apply for a Budget Loan?

Those claiming these benefits are not eligible.

  • New Job Seeker Allowance
  • New style employment and support allowance

You cannot get a budget loan if you have a job and are currently involved in a trade dispute.

You cannot get a new Budget Loan if you owe more than £1,500 from another Budget Loan or Crisis Loan.

What can a budget loan be used for?

Loans help pay for essential goods and services.

This may include:

  • furniture in your home
  • White goods such as washing machines, rice cookers, hoovers, and refrigerators
  • clothing or footwear
  • Rent paid in advance
  • Moving expenses such as removal car
  • Basic housework such as maintenance
  • Home security, including new keys and locks
  • some travel expenses in England
  • Useful things for changing jobs, such as interview suits and taxi fares to the interview
  • Expenses associated with pregnancy and childbirth
  • funeral expenses

how much do you get

The minimum amount you can borrow is £100.

You can do the following.

  • £348 if single
  • £464 if you have a partner
  • £812 if you or your partner claim child benefit

The amount you can earn depends on one of the following:

  • can repay the loan
  • Have at least £1,000 in savings (£2,000 if you or your partner is over 63)
  • Paying off an existing budget or crisis loan

Budget loan repayment

This money will be fully repaid to DWP at 0% interest within 2 years.

When DWP pays benefits, a certain amount of deduction is made to help pay off the loan.

The amount you receive depends on your total income, including the benefits you get and the amount you can afford to pay.

Even if you no longer receive benefits, the remaining budget loans must be repaid.

If you can get a loan, DWP will also let you know how much your weekly repayments will be from your benefits. If you accept, the weekly repayments from your benefits will begin immediately.

How to apply

You can do it Apply for a budget loan online However, DWP’s guidance states that “applying online will result in faster decisions about budget loans.”

What happens after I apply?

DWP will send you an email, text or letter letting you know if you can get a budget loan. Notification method must be requested at the time of application.

However, please note that if you request a decision by email or text message, you will be notified within 7 days.

If you request a written decision, it will be sent to you within 21 days.

How to receive your loan

If you can get a budget loan, you have to “accept” the decision before you receive the money.

How you “accept” a decision depends on how you apply.

  • If you applied online, you will receive a text message or email telling you what to do.
  • If you applied by mail, you can accept the decision by letter

Once you accept the offer

If you accept the loan offer, DWP will pay the money to your account, but when you receive the money depends on how you accepted the loan offer.

If you:

  • If you accept a loan offer online, you can receive your money within 7 days
  • If you accept a loan offer by mail, you will receive your money within 21 days

If you gave DWP your mobile number, you will receive a text message when DWP makes a payment to your account.

For more information on how to apply for a budget loan by mail or to appeal a decision, please visit the GOV.UK website. here.

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