The Department for Work and Pensions (DWP) is offering a £348 Budgeting Loan for eligible single claimants who need help covering essential or emergency costs.
Whether you’re facing sudden expenses like furniture replacement, moving fees, or urgent household items, this interest-free loan could be the lifeline you need—without affecting your regular benefit payments.
Eligibility Criteria for the £348 Budgeting Loan
To qualify for the DWP Budgeting Loan, you must meet the following basic requirements:
- Be a single individual currently receiving one of these benefits:
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Pension Credit
- You must have been receiving the benefit continuously for at least 6 months.
- You must not owe over £1,500 from previous Budgeting or Crisis Loans.
- You must not be involved in any form of industrial action (such as strikes or walkouts).
Note: Universal Credit claimants are not eligible for this loan. Instead, they may qualify for a Budgeting Advance.
Loan Amounts Available
The amount you can borrow depends on your circumstances. For single individuals, the maximum loan is £348.
| Applicant Type | Maximum Loan Amount |
|---|---|
| Single | £348 |
| Couple | £464 |
| With Children | £812 |
The minimum loan amount is £100. However, how much you’re offered may be affected by:
- Your current savings (loans may be reduced if savings exceed £1,000, or £2,000 if you’re over 63).
- Your ability to repay through benefit deductions.
- Any existing loan repayments you are already making.
Repayment Terms
One of the biggest advantages of the DWP Budgeting Loan is that it’s completely interest-free.
- Repayments are made via automatic deductions from your regular benefit payments.
- You usually have up to 2 years (104 weeks) to fully repay the loan.
- If your benefits stop, you’ll need to arrange an alternative repayment method.
This makes the loan an affordable solution for urgent needs without placing additional financial strain on your monthly budget.
How to Apply for the £348 Budgeting Loan
You can apply for the Budgeting Loan in two ways:
- Online Application
- Complete the online application form using your existing benefit account details.
- Paper Form Application
- Fill out and submit form SF500, which is available for download or collection from job centres.
Once your application is submitted, you’ll receive a decision typically within a few working days. Approved funds are directly deposited into your bank account.
The £348 Budgeting Loan for singles is a practical and affordable option for those receiving certain income-based benefits. It provides a helping hand for managing one-off expenses without adding financial stress.
With quick processing, no interest, and flexible repayments, it’s a support system worth considering if you’re facing financial difficulties. Make sure your eligibility is in order and apply confidently to receive the assistance you need.
FAQs
Do I need to pay interest on the £348 Budgeting Loan?
No. The DWP Budgeting Loan is interest-free—you only repay what you borrow.
Can I use the loan for anything I want?
No. The loan is intended for essential expenses like clothing, furniture, rent in advance, or moving costs.
What if I stop getting benefits while repaying the loan?
You’ll need to arrange an alternative repayment plan with the DWP if your benefit payments stop.