Budgeting Loan Calculator
Estimate your maximum interest-free Budgeting Loan or Universal Credit Budgeting Advance, then see how the weekly repayments work over 12 to 24 months. Choose your household type and the amount you need.
Budgeting loan calculator
Maximum loan band and weekly repayments.
The DWP sets your actual offer. Apply on GOV.UK.
What is a Budgeting Loan?
A Budgeting Loan is an interest-free loan from the government's Social Fund that helps people on certain benefits cover essential one-off costs — things like furniture, a cooker, clothing, moving expenses, rent in advance or funeral costs. Because it is interest-free, you only ever pay back exactly what you borrow, with the repayments taken automatically out of your benefit each week. For most households this is far cheaper than a doorstep lender, a credit card or a Buy Now Pay Later plan.
The maximum Budgeting Loan is £348 single, £464 for a couple and £812 if you have children. There is no interest — a £500 loan repaid over 104 weeks costs roughly £4.81 a week and you repay £500 in total.
Maximum loan by household
The amount you can borrow depends on your household type and on what the DWP thinks you can afford to repay. The headline maximums for 2025/26 are:
| Household | Maximum loan | Example weekly cost (104 wks) |
|---|---|---|
| Single, no children | £348 | £3.35 |
| Couple, no children | £464 | £4.46 |
| With children | £812 | £7.81 |
The minimum loan is £100. Your offer is reduced if you have savings over £1,000 (£2,000 if you or your partner are 63 or over), or existing Social Fund debt.
Budgeting Loan vs Budgeting Advance
Which scheme you use depends on which benefit you are on. If you receive an older legacy benefit — Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance or Pension Credit — you apply for a Budgeting Loan and repay it over up to 104 weeks. If you are on Universal Credit, the equivalent is a Budgeting Advance, repaid over a shorter period of up to 12 months. Both are interest-free; the calculator above lets you model either by changing the repayment term.
How repayments work
Repayments are taken straight from your benefit before it reaches your bank account, so there is nothing to remember and no risk of a missed-payment fee. The DWP normally aims to keep deductions affordable — typically capped at a small percentage of your standard allowance — which is why you can spread the loan over up to two years. If your circumstances change and the deductions become unaffordable, you can ask for them to be reduced.
How to apply
You need to have been on a qualifying benefit for at least 6 months before you apply. You can apply online or with form SF500 — full details and the eligibility checker are on GOV.UK. If your application is refused, you can ask for it to be looked at again. For a free, independent check of your options — including grants you may not have to repay — speak to Citizens Advice or use the benefits calculator at Turn2us.
Frequently asked questions
How much can I borrow with a Budgeting Loan?
The maximum Budgeting Loan is £348 if you are single, £464 if you are a couple without children, and £812 if you have children. The minimum loan is £100, and the amount you are offered also depends on what you can afford to repay and any existing loans.
Is a Budgeting Loan interest-free?
Yes. A Budgeting Loan and a Universal Credit Budgeting Advance are both completely interest-free. You only ever repay the amount you borrowed, taken automatically from your benefit payments.
How long do I have to repay a Budgeting Loan?
A Budgeting Loan is usually repaid over up to 104 weeks (two years) through deductions from your benefits. A Universal Credit Budgeting Advance is repaid over up to 12 months.
What is the difference between a Budgeting Loan and a Budgeting Advance?
A Budgeting Loan is for people on older benefits like Income Support or Pension Credit. A Budgeting Advance is the equivalent for people on Universal Credit. Both are interest-free, but the Advance is repaid over a shorter period.
Can I get a Budgeting Loan if I have other deductions?
You can, but the maximum is reduced if you already have a Budgeting Loan, Crisis Loan or other deductions. You also need to have been on a qualifying benefit for at least 6 months.