DWP paying out £812 loans to people who claim these four benefits

DWP paying out £812 loans to people who claim these four benefits

The DWP has offered interest-free loans of up to £812 and says itcan provide people cash to help tide them over.

by · Birmingham Live

The Department for Work and Pensions is paying out interest-free loans to people on benefits if they're hard up and struggling. The DWP has offered interest-free loans of up to £812 and says it can provide people cash to help tide them over.

A DWP Budgeting Loan is available to people who claim Income support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance or Pension Credit - if you moved from Universal Credit to Pension Credit, any time spent claiming Universal Credit will count towards the six months.

You cannot get a budgeting loan if you claim Universal Credit or receive new style Jobseeker’s Allowance or new Style employment and Support Allowance. If you’re involved in industrial action (for example a strike, walkout or lockout), then you can't get the Loan either.

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If you owe more than £1,500 in total for crisis loans and budgeting loans, then you're also ineligible. The lowest amount you can borrow is £100. You could get up to £348 if you’re single, £464 if you have a partner or £812 if you or your partner claim Child Benefit.

How much you could get depends on whether you can pay the loan back, have savings of more than £1,000 (£2,000 if you or your partner are 63 or over) or are paying back an existing budgeting loan or crisis loan.

“A budgeting loan is interest-free so you only pay back what you borrow,” the DWP says. “The repayments will be taken automatically from your benefits. The amount you repay is based on your income - including any benefits you receive - and what you can afford.”

After you apply for a budgeting loan, you’ll get an email, text or letter telling you if you’ve been offered a loan. This explains how much your weekly repayments will be if you accept the loan. You normally have to repay the loan within two years (104 weeks).