Little known DWP fund pays out £812 on unexpected bills and emergencies

The funding helps low income households pay for emergency and unexpected bills
-Credit:Getty Images/iStockphoto


Unexpected bills and emergency costs can be a nightmare to deal with. They can creep up on you and catch you off guard, leaving you with deep holes in your pocket.

However help is available, as the Department for Work and Pensions ( DWP ) can provide flexible interest-free support to numerous eligible Brits. The Government Budgeting Loans scheme is designed to assist you with paying for everyday expenses, such as new furniture, clothes, home maintenance and other essentials, in numerous different scenarios, reports MirrorOnline.

Even inconvenient expenses associated with a new job, moving home or maternity care are encompassed within the programme, providing you meet its specified criteria. Notably, this only involves Brits who have been in receipt of certain benefits for at least six months, including the following:

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  • Income Support

  • Income-based Jobseeker’s Allowance

  • Income-related Employment and Support Allowance

  • Pension Credit

READ MORE: New £200 cost of living payments entering bank accounts from today

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Unfortunately, those who currently receive the New Style Jobseeker’s Allowance or New Style Employment and Support Allowance cannot receive Budgeting Loans alongside anyone involved in strikes or industrial action. Owing more than £1,500 in total for previous Crisis and Budgeting Loans may also make you ineligible, while claiming Universal Credit is against the criteria too.

Government advice explains: "A Budgeting Loan is interest free so you only pay back what you borrow. The repayments will be taken automatically from your benefits.

"The amount you repay is based on your income - including any benefits you receive - and what you can afford. After you apply for a Budgeting Loan, you’ll get an email, text or letter telling you if you’ve been offered a loan. This explains how much your weekly repayments will be if you accept the loan."

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The amount you receive varies depending on numerous personal factors, including your savings and loan history, as well as your ability to pay money back. However, the lowest amount you can borrow is currently sat at £100.

The Government outlines the following:

  • £348 is the maximum amount if you're single

  • £464 is the maximum amount if you have a partner

  • £812 is the maximum amount if you or your partner claim Child Benefit

The deadline to pay back a Budgeting Loan is usually two years. Brits can do this through a series of regular monthly payments or a one-off instalment, if this becomes available.

If you're keen to apply, you can head to the Government's website to complete an online form or you can download and print one to send via post. You can then choose to receive the decision of your loan through email, text or letter.

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If you apply online, you should hear a verdict within one week by text or email. Meanwhile, postal applications generally receive a letter response within 21 days.

You'll then receive the money within a week of accepting an online offer or another 21 days of your acceptance by post. The Government adds: "If you applied online, the money will be paid into the same bank, building society or credit union account that your benefit is paid into.

"If you applied by post, the money will be paid into the account you put on the form. You’ll get a text message confirming this has been done."