What is a Budgeting Loan?

These are interest free loans intended for people on certain benefits to help intermittent expenses which may be difficult to budget for when you are on benefits.
The loan has to be for over £30 AND can be for up to £1000 (depending on circumstances and other social fund loans) and is usually deducted from your benefits at source.

What Benefits do I need to be on?

You and/or your partner need to have been in receipt of one of the following benefits throughout the 26 weeks before the date on which your application is determined. (Come into CLASP or Email for more information)

• Income Supportt
• Income Based Jobseekers Allowance
• Pension Credit (Guaranteed or Savings Credit)

The Loan Must Be For One Or More Of The Following Categories:

• Furniture and household equipment.
• Clothing and footwear.
• Rent in advance and/or removal expenses to secure fresh accommodation.
• Improvement, maintenance and security of the home.
• Travelling expenses.
• Expenses associated with seeking or re-entering work.
• Hire purchase (hp) and other debts associated with any of the above items.

Capital

Having capital in excess of £500 (£1000 if you or your partner are 60 or over) will affect your claim.

Other

You must not be involved in a trade dispute and must be likely to be able to repay the loan.

Meeting the conditions for social fund payments entitles you to claim. It does not guarantee payment.

For more details of explanation of terms please visit the CLASP office or visit www.dwp.gov.uk or www.cpag.org.uk or www.irs-review.org.uk