Managing daily expenses can be tough, especially when you’re on a low income. The UK government understands this, which is why the Department for Work and Pensions (DWP) offers Budgeting Loans to help eligible people cover essential costs. In 2025, one of the popular options is the £812 Budgeting Loan. Let’s break down what this loan is, who can get it, how to apply, and how repayment works.

What is a DWP Budgeting Loan?

A Budgeting Loan is a type of interest-free loan offered by the DWP. It’s meant for people who receive certain benefits and need help with essential one-off expenses. The best part? You only pay back the amount you borrow—there’s no interest charged.

This loan is not for everyday spending but for urgent or important costs such as furniture, moving house, rent in advance, clothes, travel costs, maternity needs, or home improvements.

In 2025, eligible applicants may be able to borrow up to £812, depending on their circumstances.

How Much Can You Borrow in 2025?

The amount you can borrow depends on your personal situation. Here are the standard maximum limits:

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• £812 if you’re part of a couple with children
• £464 if you’re single
• £812 if you’re a single parent

The amount approved also depends on how much you can afford to repay and whether you already owe money to the DWP.

Eligibility Criteria for the £812 Budgeting Loan

Not everyone can apply for a Budgeting Loan. To qualify, you must meet these conditions:

1. You must be receiving one of the following benefits for at least 6 months:
   • Income Support
   • Income-based Jobseeker’s Allowance (JSA)
   • Income-related Employment and Support Allowance (ESA)
   • Pension Credit
2. You are not eligible if you are receiving Universal Credit.
   Instead, Universal Credit claimants can apply for a Budgeting Advance.
3. You must not have more than £1,000 in savings (or £2,000 if you or your partner are 63 or older).
4. You must not be involved in industrial action (like a strike or work stoppage) when applying.
5. You should not owe more than £1,500 in total from previous Budgeting Loans.

What Can the £812 Budgeting Loan Be Used For?

You can use the loan for a variety of important needs, including:

• Rent in advance
• Essential furniture and household goods (like beds, fridge, cooker)
• Clothes or footwear
• Maternity or funeral expenses
• Travel costs (for medical appointments, job interviews, etc.)
• Expenses related to moving home
• Improving or securing your home

Keep in mind that this is not a benefit or grant. You must repay it, but repayments are manageable and taken directly from your benefits.

How to Apply for a Budgeting Loan in 2025

You can apply in 3 main ways:

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1. Online through GOV.UK:
   Visit the official government website and use the Budgeting Loan application form.
2. Download the paper form (SF500):
   Print, fill it in, and post it to the address mentioned on the form.
3. Request a form from Jobcentre Plus:
   You can call or visit your nearest Jobcentre and ask for help filling out the form.

Make sure to include correct information about your benefits, household members, existing DWP loans, and what you need the loan for.

How Long Does It Take to Get the Loan?

In most cases, you’ll get a decision within 7 to 15 working days after applying. If you apply online, the process is usually faster. Once approved, the payment is made directly into your bank account.

Repayment Process

The loan is paid back automatically from your benefit payments. The amount deducted each week will depend on how much you can afford, but most loans are paid off within 104 weeks (2 years).

If your benefits stop before the loan is fully paid, you’ll need to arrange to repay the balance directly.

You won’t be charged any interest, and the repayments will be clearly explained in your loan agreement before you accept the offer.

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What If You’re on Universal Credit?

If you’re on Universal Credit, you cannot apply for a Budgeting Loan. But you can apply for a Budgeting Advance instead. The eligibility is similar, but the process and amount are slightly different. A Budgeting Advance allows you to borrow up to £812 as well, depending on your situation.

Final Thoughts

The DWP £812 Budgeting Loan is a helpful tool for people on a low income who need support with one-off, urgent expenses. Since it’s interest-free and paid back in small amounts through your benefit payments, it’s one of the safest and most affordable ways to borrow money when you’re in a tight spot.

Always apply through official channels like GOV.UK or your local Jobcentre to avoid scams. And make sure you read all terms carefully before accepting the loan.