What is budgeting advance?


Budgeting advance is an extra amount to the people of working age that is on low income to help them to pay for certain expenses.

You will be allowed to get a budgeting advance when you fulfill some criteria, those are:

  • The earning has to be £2,600 in total in the previous 6 months if you are single.
  • For a couple, this amount becomes £3,600 in total for the last 6 months.

There is certainly a savings limit. If you have £1000 or more in your savings, you cannot apply for budgeting advance.

The decision will be made whether you are able to get a budgeting advance by noticing the following things:

  • The circumstances.
  • The existing budgeting advance that you have.
  • Your savings and capability to return the loan.

How much Budgeting Advance will I get?

There are three estimations of budgeting advance based on whether you are single, a couple without a child or a couple with child/children. You can get the maximum amount as:

  • £348 if you’re single
  • £464 if you’re part of a couple
  • £812 if you have children

How will I get benefitted by Budgeting Advance:

A budgeting advance can help you to pay for:

  • Draft the purchase payment and other liabilities if only the money is borrowed from any other categories.
  • Advance rent or removal expenses for new accommodation
  • The expenses for maintenance for the house
  • Maternity or funeral expenses
  • Essential travel expenses to start or get a new job
  • Some fundamental expenses like clothes, furniture, other equipment, etc

How do I claim for the Budgeting Advance?

For England, Scotland or Wales, they need to contact their local job center desk.

For Northern Ireland, they need to contact the local social security office.

What are the documents I need for applying for Budgeting advance:

The essential documents that you need for applying budgeting advance are

·      Your national insurance number

·      The details of your family members (who else lives with you, your child or partner)

·      Details of your savings

·      Details of your current debt payments

·      A declaration of your earning

When will my Budgeting Advance claim begin?

Your application will be treated when it will be received by the Department of Work and pension (DWP). If your application is incomplete you will be requested for the additional information. You have to sign 4 pages acceptance letter and return it into a prepaid envelope. Then you will receive your money within 21 working days.

The whole process will take 5-6 months.

How to repay budgeting advance?

For budgeting advance, you have to pay the exact amount that you have taken as it is interest-free in nature. The repayment amount will be taken automatically from your help. The amounts you will repay depend on three things: your income, any benefits that you receive and the amount that can you afford. In general, you have to repay the amount within 2 years.