What are Budgeting Advances and Budgeting Loans?

Budgeting Advances and Budgeting Loans are interest-free loans of between £100 and £812 from the government to help you with specific essential costs.

If you have been getting Universal Credit for at least six months you can only claim a Budgeting Advance.

You can only get a Budgeting Loan if you’ve been getting one of the following benefits for at least six months:

• Income-related Employment and Support Allowance
• Pension Credit – if you moved from Universal Credit to Pension Credit, any time you spent claiming Universal Credit will count towards the 6 months.

These benefits (except for Pension Credit) are known as ‘legacy benefits’. Legacy benefits are currently being replaced by Universal Credit.

Find out more in our guide Moving to Universal Credit from other benefits.

Both Budgeting Advances and Budgeting Loans help you pay for essential and/or unexpected expenses, such as:

• furniture and household appliances
• clothing and footwear
• rental deposit and moving costs
• travelling costs
• equipment and tools to help you get or keep a job
• improving, maintaining or securing your home
• having a baby
• planning a funeral.

The smallest loan you can take is £100, with the maximum based on your living situation:

• £348 if you’re single
• £464 if you’re part of a couple
• £812 if you or your partner claim Child Benefit.

You might get less than the maximum if you have savings over £1,000 or are paying back an existing Budgeting Loan.

In Northern Ireland a Budgeting Advance is the same as detailed above but a Budgeting Loan is called the Social Fund Budgeting LoanOpens in a new window and is an interest-free way to borrow from £100 up to £1,500.

You can apply for a Budgeting Advance if you:

• have been getting Universal Credit for at least six months – unless you need the money to help you get or keep a job
• have earned less than £2,600 (£3,600 if you’re in a couple) in the past six months
• are not already paying off another Budgeting Advance.

 To apply for the loan, you can:

•  use your online account
•  ask your work coach at your local Jobcentre Plus.
• contact the Universal Credit helpline.

Citizens Advice has more information about Budgeting AdvancesOpens in a new window

If you are over State Pension age - or part of a couple and you’re both over State Pension age - and have been getting Pension Credit for at least six months, you can apply for a Budgeting Loan. 

If you are under State Pension age – or part of a couple where one of you is under State Pension age – and the other is claiming Universal Credit, it’s likely you’d need to apply for a Budgeting Advance. If you are unsure of what you can apply for, speak to your work coach who can advise you.

If you live in England, Wales or Scotland, you can apply onlineOpens in a new window on GOV.UK. You can also download, complete and print Form SF500Opens in a new window on GOV.UK  or pick one up from your local Jobcentre Plus.

If you live in Northern Ireland, you can apply onlineOpens in a new window on NIDirect. You can also download, complete and print Form SF500Opens in a new window on nidirect or visit your local Jobs and Benefits office.

Your repayments are worked out when you take out the loan. This amount is then usually taken out of your regular benefit payments until it’s repaid.

Depending on how much you borrow, you must usually pay it back within two years.

If you stop getting benefits while you’re still making repayments, you’ll need to agree another way to pay the money back.

If you can no longer afford the repayments, you can ask your work coach for another repayment plan. It’s important you don’t get into debt trying to pay off the loan.

Our Bill prioritiser can help you put your bills and payments in the right order. can help you put your bills and payments in the right order.

If you’re struggling to pay – whether it’s your rent, your mobile phone bill or loan repayments – it will tell you in two easy steps what to do before you miss a payment.

Where to get help and support in an emergency depends on where you live: 

• In England, contact your local council to find your local welfare assistance schemeOpens in a new window
• In Scotland, find out about the Scottish Welfare FundOpens in a new window on the Scottish Government website.
• In Wales, find out about the Discretionary Assistance FundOpens in a new window on the Welsh Government website.
• In Northern Ireland, find out about Discretionary SupportOpens in a new window on nidirect.

If you’re pregnant with your first child or already have children and are now expecting twins (or multiple births), you might be able to claim a £500 SureStart maternity grant.

In Scotland this is called the Best Start Grant and worth up to £767.50 in 2025/26 depending on the age and number of your children. You don’t have to pay this back.

Find out more about these grants and other help you could get in our guide What benefits can I claim when pregnant or have a baby?

If you’re getting certain benefits and have to pay the funeral expenses of a relative or close friend, you might be able to apply for a Funeral Expenses PaymentOpens in a new window

If you’re waiting for your first payment and are struggling with the cost of living, you can ask for an extra payment to be made early. This is called an advance payment.

Your regular benefits payments will then be reduced by a little each time until it’s repaid. You can ask for an advance on the following benefits: 

• Universal Credit
• Carer’s Allowance
• Pension Credit
• State Pension
• New style Employment and Support Allowance
• New style Jobseeker’s Allowance. 

You can apply for a Universal Credit advance via your online account If it’s approved, the money is usually paid into your bank account within five days.

Find out more in our guide Help managing your money while waiting for your first Universal Credit payment.

For advance payments for the other benefits, you’ll usually need to call to apply. See GOV.UKOpens in a new window if you live in England, Scotland or Wales, and nidirectOpens in a new window if you live in Northern Ireland for the number to call and opening hours.

It’s important to get free debt advice if you’ve missed a payment, worried you will or are facing any emergency issues, including:

• being contacted by bailiffs
• receiving a court summons
• having your gas or electricity cut off
• having your home, car or goods repossessed.

Use our Debt advice locator tool  to find free and confidential debt advice online, over the phone or near to where you live. 

A debt adviser will: 

• treat everything you say in confidence
• never judge you or make you feel bad about your situation 
• suggest ways of dealing with debts that you might not know about
• check you’ve applied for all the benefits and entitlements available to you.