Budgeting loan

Budgeting loans are a feature of the social security system in the United Kingdom. Budgeting Loans are interest free loans from the Social Fund that are available only to people claiming certain income-related benefits.^[1]

Although the discretionary element of the Social Fund was abolished those who have not yet been transferred over to Universal Credit can still apply. However, those in receipt of Universal Credit are ineligible for a budgeting loan and must instead apply for a Budgeting Advance instead.^[1]

References

1 2 http://england.shelter.org.uk/get_advice/money_problems/in_a_crisis/budgeting_loans

Social Fund in the United Kingdom

Regulated element	Funeral payment Sure Start Maternity Grant Cold weather payment Winter Fuel Payment

Discretionary element (abolished)	Crisis loan Budgeting loans Community care grant

Welfare Reform Act 2012	Local welfare assistance scheme Short term benefit advance Budgeting advance

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