Social Fund Budgeting loan
You can get help if you need money for essential household items. Budgeting loans help with costs such as furniture or essential household equipment, clothing, footwear or home improvements. Budgeting Loans are interest-free and you must repay your loan.
Eligibility
You may be able to get a Social Fund Budgeting loan if you or your partner have been continuously receiving one, or more of the following benefits for the past 26 weeks:
- Income Support
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
- Pension Credit
If you moved from Universal Credit to Pension Credit, any time you were getting Universal Credit will count towards the 26 weeks.
You cannot get a Social Fund Budgeting loan if you or your partner currently claim Universal Credit.
Social Fund Budgeting loans can be used to help pay for any of the following:
- furniture or household equipment
- clothing or footwear
- advance rent and removal costs when moving to a new home
- travelling expenses within the UK
- things to help you look for or start work
- improving, maintaining or securing your home
- maternity or funeral expenses
- repaying hire purchase or other debts you took out to pay for any of the above
Effect on other benefits
A Social Fund Budgeting loan does not count as income and will not affect other benefits you're getting.
How to apply
You can apply for a Social Fund Budgeting loan online. Using this service means you will receive your loan payment faster.
You can request a form by phoning 0800 0224 250 or by calling into your local Jobs & Benefits office.
The form comes with notes to help you fill it in and tells you where to send it.
There is a different form and postal address if you live in England, Scotland or Wales.
If you use sign language, you might be able to use the video relay service.
How you will receive a decision about your loan application
Your Social Fund Budgeting loan decision is usually sent by letter. You can also receive a telephone communication about your loan decision. Telephone communications will allow you to receive your payment faster than by post.
If you do not want to use the telephone process you can return your offer letter by post in the usual way.
You can also view an information leaflet to explain the application process.
How much you'll get
You can apply to borrow between £100 and £1,500. The amount you get will depend on:
- the number of people in your household
- any money you already owe to the Social Fund for previous loans
- your ability to repay the loan
- your savings (your award will usually be reduced by the amount of any savings you or your partner have above £1,000, or £2,000 if one or both of you is 63 or over)
The following cannot be taken into account:
- the urgency of your need
- any health problems you or your family might have
- a Social Fund Budgeting loan for expenses less than £100
and
- payment for a loan if you already owe £1,500 or more to the Social Fund
How the loan is paid
The loan will be paid into the account you provided detail of.
Repaying the loan
Your repayments are worked out at the time your loan is agreed. Your repayments will be based on what you can afford. You will also be asked to agree how you will repay the loan before you get the payment.
They are usually taken out of your benefit. If you stop getting benefits, you will need to arrange another way to repay the loan.
The repayments are interest-free, so you only pay back what you borrowed and no more.
You normally have to repay a Social Fund Budgeting loan within a maximum of 104 weeks. If you have problems later making the repayments, you can make contact on Freephone 0800 022 4250 to discuss your circumstances.
If you are unhappy with a decision
If you are unhappy with a decision on your application for a Social Fund Budgeting loan, you can ask for a review.
You must write to the address below within 28 days of the decision, or call 0800 022 4250 explaining why you think the decision is wrong and asking for it to be reviewed.
Budgeting Loan, Social Fund
Mail Opening Unit
PO Box 42
Limavady
BT49 4AN
If after that review, you still think the decision was wrong, you can ask for the Independent Case Examiner, who is independent of the Department for Communities to carry out another review.
The review process is quick and simple, and should take no longer than 21 days.
Help with making a claim
For further help to claim a Social Fund Budgeting loan, call 0800 022 4250, contact your local Jobs & Benefits office or get independent help and advice from Advice NI