Budgeting loan

Budgeting loans are a feature of the social security system in the United Kingdom. Budgeting Loans are interest free loans from the Social Fund that are available only to people claiming certain income-related benefits.^[1]

Although the discretionary element of the Social Fund was abolished those who have not yet been transferred over to Universal Credit can still apply. However, those in receipt of Universal Credit are ineligible for a budgeting loan and must instead apply for a instead.^[1]

The loan is meant to be used for household necessities and paying down existing consumer debt.^[2] The total sum can be up to £812, if the applicant is part of a couple with children.^[3] In 2019, the UK government has re-affirmed its commitment to the loan scheme.^[4]

References[]

^ ^a ^b http://england.shelter.org.uk/get_advice/money_problems/in_a_crisis/budgeting_loans^{[dead link]}
^ "Budgeting Loans".
^ "Budgeting Loans".
^ "Food Banks: Scotland".

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[shelter-1] ttp://england.shelter.org.uk/get_advice/money_problems/in_a_crisis/budgeting_loans^{[dead link]}

[Government_Guide-2] "Budgeting Loans".

[Government_Guide-_General_Info-3] "Budgeting Loans".

[Government_Guide_-_'What_you'll_get'-4] "Food Banks: Scotland".

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[2]

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[4]

v Social Fund in the United Kingdom
Regulated element	Cold weather payment Funeral payment Sure Start Maternity Grant Winter Fuel Payment
Discretionary element (abolished)	Community care grant Crisis loan Budgeting loan
Welfare Reform Act 2012	Local welfare assistance scheme Short term benefit advance
Social Fund Commissioners	Rosalind Mackworth (1987–1995) John Scampion (1995–2000) Sir Richard Tilt (2000–2009) Karamjit Singh (2009–2013)