Life doesn’t always go as planned. Whether it’s a broken washing machine, a sudden move, or extra costs tied to welcoming a new baby, these moments can create financial stress, especially when you’re on a limited income. Fortunately, the Department for Work and Pensions (DWP) offers support in the form of Budgeting Loans, helping individuals and families meet essential one-off expenses without falling into debt traps.
One of the most commonly discussed figures when it comes to these loans is £812, the maximum amount available under specific circumstances. But what does this number mean, who can access it, and how can it be repaid?
This comprehensive guide will walk you through everything you need to know about the DWP £812 Budgeting Loan, including eligibility criteria, the application process, repayment details, and alternative support options.
What is a DWP Budgeting Loan and Who Can Get £812?
A DWP Budgeting Loan is an interest-free financial support option designed to help people on low incomes manage essential or unexpected expenses. Offered through the Social Fund, these loans are available only to individuals who have been receiving specific income-based benefits for a minimum of six months.
The £812 amount represents the maximum loan available to those who qualify, but it’s important to understand that the actual amount offered depends on several factors.
The loan amounts are capped as follows:
| Applicant Type | Maximum Loan Amount |
| Single person | £348 |
| Couple (no children) | £464 |
| Couple or single parent with children (claiming Child Benefit) | £812 |
While £812 is the upper limit, the final offer depends on your ability to repay the loan, whether you’re currently repaying an existing Budgeting or Crisis Loan, and whether you have savings. Applicants with over £1,000 in savings (£2,000 for those aged 63 or over) may not qualify for the full amount.
What Are the Eligibility Requirements for a Budgeting Loan?
To qualify for a Budgeting Loan, applicants must have been receiving one or more of the following income-related benefits for at least six consecutive months:
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Pension Credit
If you’ve recently transitioned from Universal Credit to Pension Credit, your time on Universal Credit may count towards the six-month requirement.
However, not everyone receiving benefits is eligible. You cannot apply for a Budgeting Loan if you:
- Currently claim Universal Credit (you’ll need to apply for a Budgeting Advance instead)
- Are on New Style JSA or New Style ESA
- Are participating in industrial action (such as a strike or lockout)
- Already owe more than £1,500 across existing Social Fund loans (Budgeting or Crisis Loans)
There is also a separate application process for individuals residing in Northern Ireland.
What Can a Budgeting Loan Be Used For?
Budgeting Loans are designed to help cover essential costs that arise unexpectedly or as a one-off. These are not meant for ongoing expenses like rent or utility bills but can be used for specific, necessary purchases or payments that support everyday living.
You can apply for a Budgeting Loan to cover:
- The purchase or replacement of essential furniture and household appliances, such as cookers or washing machines
- Clothing and footwear
- Rent in advance if you are moving house
- Expenses related to relocating, including travel and removal costs
- Security improvements for your home
- Travel within the UK for significant personal matters
- Maternity-related costs
- Funeral expenses
- Repayment of hire purchase loans or other debts for any of the above items
This flexibility makes Budgeting Loans a practical solution for low-income households managing sudden or necessary expenditures.
How Do You Apply for a DWP Budgeting Loan?
The application process is straightforward, and there are two ways to apply: online or by using a paper form. Applying online is the faster option and is recommended where possible.
Applying Online
To apply online, you’ll need to visit the official GOV.UK website. During the application process, you’ll be asked to provide:
- Your National Insurance number
- Details of your benefits
- The reason you are applying for the loan
- Your bank or building society details (where the loan will be paid if approved)
You can choose how to receive your decision, by email, text message or post. Receiving your decision electronically is quicker.
Applying with a Paper Form
If you prefer or require a paper-based application, you’ll need to complete Form SF500. This can be:
- Downloaded from the GOV.UK website
- Requested by calling the Social Fund Enquiry Line
Once filled in, the form must be returned via post to the address listed on the form. It’s important not to send it to your local Jobcentre, as this may delay processing.
| Application Method | How to Get Decision | Timeframe |
| Online (email or text) | Instant acceptance link | Within 7 days |
| Online (letter) | Physical post | Within 21 days |
| Paper form (SF500) | By post only | Within 21 days |
How Are Budgeting Loans Paid and What If You Want It Sent to a Different Account?
Budgeting Loans are usually paid into the same account where your benefit is received. However, if you’d like the payment sent to a different bank account, you have two options:
- Change your benefit account before applying
- Apply using the paper form, where you can specify a different account
If your application is successful, you will be told the amount offered and your weekly repayment amount. You must accept the offer before the loan is processed and paid.
What Happens After You Apply and How Do You Accept the Offer?
After applying, you’ll be notified if you’ve been approved, along with the loan amount and the proposed repayment plan. If you applied online and selected email or text, the notification usually arrives within 7 days. If you applied by post, it may take up to 21 days.
Accepting the Loan
- Online: Follow the instructions in your email or text message to accept the loan digitally.
- By Post: Sign page 4 of your acceptance letter and return it in the envelope provided. Make sure the address is visible through the window.
Once accepted:
- If accepted online, the money is usually paid within 7 days.
- If accepted by post, allow up to 21 days for the funds to arrive.
How Do You Repay the DWP Budgeting Loan?
Budgeting Loans are interest-free, so you only repay the exact amount borrowed. Repayments are automatically deducted from your benefit payments, making the process manageable and hassle-free.
The amount you repay each week depends on:
- The total amount borrowed
- Your household income (including any benefits)
- What you can realistically afford
You usually have up to 104 weeks (2 years) to repay the loan. If your circumstances change, such as your benefits stopping, the DWP Debt Management team will contact you with instructions for setting up repayments via alternative methods, such as direct debit or lump-sum payments.
What If You’re Not Happy With the Decision?
If you believe your Budgeting Loan application was wrongly denied or the amount offered is incorrect, you can ask for a review.
To request a review:
- Write to the address at the top of your decision letter
- Include your name, National Insurance number, contact information, and the reasons you disagree with the decision
Your request must be received within 28 days of the date on your decision letter.
If you remain dissatisfied after the review, you can escalate the issue to the Independent Case Examiner, again within 28 days of the revised decision.
What Support Is Available If You Don’t Qualify for a Budgeting Loan?
If you are not eligible for a Budgeting Loan, or if your needs are not met by the amount offered, there are alternative support options depending on where you live in the UK:
- Universal Credit Advance – For claimants who need early access to their first Universal Credit payment
- Discretionary Assistance Fund – Available in Wales for emergencies
- Crisis Grants or Community Care Grants – Available in Scotland for urgent needs
- Discretionary Support or Short-Term Benefit Advances – Available in Northern Ireland
- Local council welfare schemes – For help with food, energy bills, and emergencies
Charitable organisations like Turn2Us, StepChange, and The Trussell Trust may also offer help in certain situations.
FAQs About DWP Loans £812
Is £812 the standard amount for everyone applying?
No. £812 is the maximum amount available for applicants with children. Single people or couples without children receive lower maximum amounts.
Can I receive more than one Budgeting Loan at a time?
Yes, but your total loan balance with the Social Fund must not exceed £1,500.
Will applying for a Budgeting Loan affect my benefit payments?
No. The loan does not impact the amount of benefits you receive, and it is not classed as income.
Can I repay my loan early?
Yes, you can contact the DWP Debt Management to arrange early or lump-sum repayments if your financial situation allows.
Can I change my bank account after I apply?
You can only change your account details before applying or by applying via the paper form and specifying the desired account.
What happens if I move from one benefit to another?
As long as you remain eligible under the new benefit and continue repayments, your loan agreement remains valid. Contact DWP if your circumstances change.
How do I contact the Social Fund Enquiry Line?
You can call 0800 169 0140 (or 0800 169 0240 for Welsh speakers) from Monday to Friday, 10am to 3pm.
