It can be used for a number of things
The DWP is offering a two year loan worth up to £812 for people on certain benefits. They may be eligible for a Budgeting Loan which can be used for essential products and services.
The Daily Record reports the loan is repaid through deductions from benefits. Budgeting Loans are not available to those claiming Universal Credit, however, they may be eligible for a Budgeting Allowance.If someone has moved from Universal Credit to Pension Credit, the DWP will add the time they were getting Universal Credit to the six months.
It is important to be aware that because it is a loan, the money must be paid back and is done so through benefit payments.If you have a job and are currently involved in a trade dispute, you cannot get a Budgeting Loan. Paying the Budgeting Loan back The money is paid back in full to the DWP at 0% interest within two years. When the DWP pays your benefit, it will take an amount off to help pay your loan off.
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