The Department for Work and Pensions (DWP) now offers one-off payments of up to £812 to households on legacy benefits.
These interest-free Budgeting Loans (also called Budgeting Advances) are designed to help with one-off costs like home essentials and travel expenses.
This relief is significant—especially for low-income families facing unexpected bills.
Who Qualifies for the £800+ Payment?
You’re eligible if:
- You’ve received one or more legacy benefits (Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, or Pension Credit) for at least six months.
- If you moved from Universal Credit to Pension Credit, your time on Universal Credit still counts toward the six-month requirement.
- Universal Credit claimants must apply for a Budgeting Advance instead—not a Budgeting Loan.
How Much You Could Get
| Household Type | Maximum Amount Available |
|---|---|
| Single Claimant | £348 |
| Couple Without Children | £464 |
| Family with Child Benefit (claimant or partner) | £812 |
The minimum loan you can request is £100. If you have savings over £1,000 (or £2,000 if you’re over State Pension age), your loan amount may be reduced accordingly.
What You Can Use the Money For
These payments can cover a variety of urgent or essential costs:
- Furniture or household appliances
- Clothing or household items
- Rent or moving costs
- Travel expenses
- Job-related costs (like tools or interviews)
- Home maintenance and security
- Baby equipment or maternity costs
- Funeral expenses
- Repaying hire purchase agreements
Repayment Details
- The loan is interest-free, meaning you repay only what you borrow.
- Repayments are automatically deducted from your benefits over time.
- Thanks to the Fair Repayment Rate, introduced in April 2025, deductions are capped at 15% of the standard Universal Credit allowance, down from the previous 25%. This results in better monthly cash flow for about 1.2 million households, with an average benefit increase of £420 per year.
Why This Matters
These one-off payments provide a lifeline for unexpected expenses, offering a fair, interest-free alternative to high-cost credit.
Combined with more generous repayment terms, they deliver essential support to households in need—without forcing them into debt traps.
If you’re on legacy benefits, you may be eligible for a one-off interest-free payment of up to £812 from the DWP to help with essential costs.
With the improved Fair Repayment Rate, you’ll retain more of your benefits each month even during repayment. It’s a practical, supportive solution for those facing financial challenges—so exploring your eligibility could make a significant difference.
FAQs
Can Universal Credit claimants apply for this payment?
No. Universal Credit claimants must apply for a Budgeting Advance instead. Budgeting Loans are for those on legacy benefits only.
How are repayments taken, and how long do they last?
Repayments are automatically deducted from your benefits. The repayment period can extend up to 24 months, depending on when your loan was issued.
What effect does the Fair Repayment Rate have?
It caps deductions to 15% of your standard allowance, helping you keep more of your benefits—averaging £420 extra per year for affected households.