Receiving income related benefits? You could get a £812 budgeting loan from the state

For those who have moved onto universal credit from a previous benefit, any time spent claiming universal credit will count towards the six months time frame.

However, new claimants of universal credit will not be able to receive a budgeting loan, they must apply for a budgeting advance instead.

It is also impossible to receive a budgeting loan if the claimant is involved in industrial action such as strikes, walkouts or lockouts.

If the claimant owes more than £1,500 in total for crisis loans (which are no longer available) and budgeting loans than it will not be possible to receive further help.

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The rules concerning repayments appear to be relatively relaxed.

Any budgeting loan is always interest free, meaning that only what is borrowed is paid back.

The repayments themselves will be taken automatically from whatever benefits the claimant is receiving. The actual amount repaid is based on the claimant’s income and what they can afford.

The repayments occur weekly and will be explained in a letter provided after the initial application. The loan is usually repaid within two years and if the claimant comes off benefits, they will be expected to arrange alternative repayment options.