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Budgeting Loan eligibility
The benefits that qualify, the 6-month rule, and the cases where the answer is no.
Written by the benefitmoney.co.uk editorial team · Last reviewed 21 October 2026
To get a Budgeting Loan you must have been on Income Support, income-based JSA, income-related ESA or Pension Credit for the past 6 months.
You cannot get one if you get Universal Credit, New Style JSA or New Style ESA.
This page is about who qualifies. For the application steps see how to apply; for amounts and the full guide see Budgeting Loan.
The 6-month rule
You must have received one or more of the qualifying benefits for the past 6 months. Check your award letters to confirm how long you have been getting it. One exception: if you moved from Universal Credit to Pension Credit, the time you spent on Universal Credit counts towards the 6 months.
Source: GOV.UK, checked 21 October 2026.
Qualifying benefits
| Benefit | Qualifies? |
|---|---|
| Income Support | Yes |
| Income-based Jobseeker’s Allowance | Yes |
| Income-related Employment and Support Allowance | Yes |
| Pension Credit | Yes |
| Universal Credit | No: apply for a Budgeting Advance |
| New Style Jobseeker’s Allowance | No |
| New Style Employment and Support Allowance | No |
The table is deliberate about the “New Style” benefits. They have similar names but are different benefits, and they are not on the list.
Who cannot get one
- You currently get Universal Credit.
- You get New Style JSA or New Style ESA.
- You are involved in industrial action, such as a strike, walkout or lockout.
- You owe more than £1,500 in total for Crisis Loans and Budgeting Loans.
Source: GOV.UK, checked 21 October 2026.
Cases people ask about
“I am on Universal Credit”
Not eligible for a Budgeting Loan. The equivalent for you is the Budgeting Advance, and if it is refused see what to do next.
“I moved from Universal Credit to Pension Credit”
The time on Universal Credit counts towards the 6 months. You do not start the clock again.
“I get ESA but I am not sure which kind”
Only income-related ESA qualifies. New Style ESA does not. Your award letter says which one you have.
“I already have a Budgeting Loan”
You may still apply, but an existing loan reduces what you can borrow, and you cannot owe more than £1,500 in total across Budgeting Loans and Crisis Loans.
“I live in Northern Ireland”
There is a different scheme there. See Discretionary Support.
What changes your amount
Being eligible does not mean getting the maximum. The DWP looks at whether you can pay the loan back, whether you have savings of more than £1,000 (£2,000 if you or your partner are 63 or over), and whether you are already repaying a loan.
| Your household | Most you can get |
|---|---|
| Single | £348 |
| You have a partner | £464 |
| You or your partner claim Child Benefit | £812 |
The lowest you can borrow is £100.
Source: GOV.UK, checked 21 October 2026.
If you do not qualify
- On Universal Credit: Budgeting Advance or Universal Credit advance.
- Need a washing machine, cooker or similar: white goods grants.
- Local help from your council: Household Support Fund.
- Wales: Discretionary Assistance Fund. Scotland: Scottish Welfare Fund.
- Not sure what applies to you: the eligibility checker.
Common questions
Can I get a Budgeting Loan on Universal Credit?
No. If you get Universal Credit, apply for a Budgeting Advance instead.
How long must I have been on benefits?
You must have been getting one or more qualifying benefits for the past 6 months.
Which benefits qualify?
Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance and Pension Credit.
Does New Style ESA or JSA count?
No. New Style Jobseeker's Allowance and New Style Employment and Support Allowance do not qualify.
Can I get one if I already owe money to the DWP?
Not if you owe more than £1,500 in total for Crisis Loans and Budgeting Loans. An existing loan also reduces what you can borrow.
Sources
- GOV.UK — Budgeting Loans (how they work, eligibility, repayments, how to apply, after you apply)↗. Checked 21 October 2026.
Related guides
- Budgeting Loan — the full guide: amounts, what it can pay for, phone line.
- Budgeting Advance — the Universal Credit equivalent.
- Borrowing while on benefits — what lenders look at and what it costs.
This page is independent. It is not run by the Department for Work and Pensions or GOV.UK.