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Budgeting Loan repayments
Interest-free, taken from your benefits, normally within two years.
Written by the benefitmoney.co.uk editorial team · Last reviewed 21 October 2026
A Budgeting Loan is interest free. Repayments are taken automatically from your benefits, normally over 2 years (104 weeks).
You are told the weekly amount before you accept, so you can say no if it is too much.
This page covers paying the loan back. For eligibility see who can get one, and for the application steps see how to apply.
How repayment works
- No interest and no fees: you pay back only the amount you borrow.
- Repayments come straight out of your benefits, so there is nothing to set up.
- You normally repay within 2 years (104 weeks).
- The weekly amount is in your offer, which arrives by email, text or letter before you accept.
Source: GOV.UK, checked 21 October 2026.
How the weekly amount is set
The DWP bases it on your income, including benefits, and what you can afford. It does not publish a fixed rate. That is why two people who borrow the same amount can have different weekly deductions. If the amount in your offer looks unaffordable, you do not have to accept. You can also ask for the decision to be looked at again within 28 days if you disagree with the amount you were granted: see the main guide.
What the maximum looks like
The DWP does not publish repayment tables, so the figures below are plain arithmetic, not DWP amounts: the loan divided evenly over the full 104 weeks. Your real deduction is set from your income and may be higher or lower.
| Loan | Spread evenly over 104 weeks |
|---|---|
| £100 (minimum) | about £0.96 a week |
| £348 (single maximum) | about £3.35 a week |
| £464 (couple maximum) | about £4.46 a week |
| £812 (with Child Benefit) | about £7.81 a week |
If you stop getting benefits
If you stop getting benefits, DWP Debt Management writes to you explaining how to repay what is left. You can pay it in full or set up regular monthly payments. Do not ignore the letter.
Source: GOV.UK, checked 21 October 2026.
Before you accept
- Read the weekly amount in the offer and check it against your weekly budget.
- Remember the loan adds to what you already owe if you have an existing Budgeting Loan or Crisis Loan: the limit is £1,500 in total.
- Consider free help first: grants for appliances, your council’s Household Support Fund, or a credit union loan.
- If you are on Universal Credit this page does not apply: see the Budgeting Advance.
Common questions
Is a Budgeting Loan interest free?
Yes. You only pay back what you borrow.
How are repayments taken?
Automatically from your benefits.
How long do I have to repay?
Normally within 2 years (104 weeks).
How is the weekly repayment worked out?
It is based on your income, including any benefits you receive, and on what you can afford.
What if I stop getting benefits?
DWP Debt Management writes to you. You can pay the rest in full or set up regular monthly payments.
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.