DWP £812 Loan – Eligibility Criteria and Repayment Schedule

By Ehsteem Arif

Published on:

Department for Work and Pensions (DWP)

The UK Department for Work and Pensions (DWP) has introduced a new £812 loan to support benefits claimants. This initiative is designed to assist those in need with essential expenses without requiring immediate repayment.

Interest-Free Loan

The DWP budgeting advances and loans, including the new £812 loan, are interest-free, meaning you only pay back what you borrow. The repayments are automatically deducted from your benefits, making it convenient and manageable. According to the DWP, “The amount you repay is based on your income — including any benefits you receive — and what you can afford.”



These loans are intended for one-off expenses such as:

  • Replacing household appliances
  • Paying for rent in advance
  • Costs associated with moving house, maintenance, improvements, or home security
  • Travel costs within the UK and those linked to obtaining a new job
  • Maternity and funeral costs

Additionally, the loan can help repay hire purchase loans for these items. If you receive a budgeting advance, your Universal Credit payments will be reduced until the loan is repaid, usually within 12 months.



To qualify for a Budgeting Loan, you must be receiving specific benefits from the DWP for at least six months. Eligible benefits include:

  • Income Support
  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance
  • Pension Credit

Repayment Period

In his spring statement and Budget, Chancellor Jeremy Hunt announced an extension of the repayment period for new Budgeting Advance loans. Starting in December 2024, the repayment period will increase from 12 months to 24 months. This change aims to make monthly payments more affordable for nearly one million households on Universal Credit who take out these loans for emergencies like boiler repairs or job-related expenses.


Application Process

Applying for a Budgeting Loan involves a straightforward process. After you apply, you will receive an email, text, or letter informing you if you have been offered a loan. This communication will detail the amount and weekly repayment schedule if you accept the loan.

Benefits of the Loan

The new £812 loan provides essential financial support to benefits claimants, offering a lifeline for unexpected and necessary expenses. By extending the repayment period, the DWP ensures that claimants can manage their finances more effectively without undue strain.


The DWP’s new £812 loan is a valuable resource for benefits claimants, providing interest-free financial assistance for critical expenses. With extended repayment terms starting in December 2024, this loan will help individuals and families manage their budgets more effectively, ensuring they can cover essential costs without immediate financial pressure.


Who can apply for the Budgeting Loan?

Those on specific benefits for at least six months can apply.


How much can you borrow with the new loan?

The new loan amount is up to £812.

When does the repayment period change take effect?

The repayment period extension to 24 months begins in December 2024.


Do you pay interest on the Budgeting Loan?

No, the loan is interest-free.

How will I know if I get the loan?

You will be informed by email, text, or letter if you are offered a loan.


Disclaimer- We are committed to fair and transparent journalism. Our Journalists verify all details before publishing any news. For any issues with our content, please contact us via email. 

Ehsteem Arif

A tax law expert with a knack for breaking down complex regulations into digestible insights. Ehsteem's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

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