The benefit system offers a flat rate of £ 812 to help out when you struggle with bills
Households struggling to keep up with daily expenses could get help from a little-known program called Budgeting Loan to help bridge them.
The loan can be used for important bills such as rent, travel expenses, and even repairs, and is designed to prevent desperate needy people from resorting to rip-off payday lenders or illegal loan sharks.
It is similar to a universal prepayment loan and is offered interest-free to applicants, with the money required to be repaid within two years, reports the mirrors.
Those eligible for a budgeting loan must have received certain benefits for six months – such as Income Support, Income-Based Unemployment Allowance, Income-Related Employment and Support Allowance, and Pension Credit.
If you have switched from Pension Credit to Universal Credit, the time you spent applying will count towards the six months.
However, a budgeting loan cannot be obtained by those who currently have a universal loan or who already owe more than £ 1,500 in total on crisis and budgeting loans.
The lowest amount you can borrow is € 100. However, this increases to £ 348 if you are single, £ 464 if you have a partner and £ 812 if you or your partner are claiming child benefit.
How much you can get depends on whether you can repay the loan, have savings of more than £ 1,000 (£ 2,000 if you or your partner are 63 or older), or repay an existing budget or crisis loan.
How does it work?
A budgeting loan is interest-free. The repayments are means-dependent and are automatically deducted from the benefits depending on affordability.
The repayment is usually made within two years (104 weeks).
What does it cover?
A budgeting loan can help pay for:
- Furniture or household items (for example washing machines or other “white goods”)
- Clothes or shoes
- rent in advance
- Costs related to the move
- Maintenance, improvements or security for your home
- Travel expenses within the UK
- Costs related to finding a new job
- Maternity costs
- Funeral expenses
- Repay hire purchase loan
- Repayment of loans taken out for the above items
You don’t have to suffer in silence when your mental health struggles. Here are a few groups you can contact if you need help:
Samaritans: Phone 116 123, 24 hours a day, or email [email protected], in confidence
Children’s telephone: Telephone 0800 1111. Calls are free and do not appear on your bill
PAPYRUS: A voluntary organization that supports suicidal adolescents and young adults. Telephone 0800 068 4141
Depression Alliance: A charity for people with depression. Not a hotline, but has useful resources and links to other information on his website
Students Against Depression: A website for students who are depressed, in a bad mood, or at risk of suicide. click here to visit
Bullying UK: A website for bullying children and adults. click here
Campaign Against Living Miserably (CALM): For young men who feel unhappy. Has a website here and a hotline: 0800 58 58 58
How to get help
Find out how to do it Apply online, here.
After applying, you will receive an application by email or SMS within seven days.
If accepted, you will need to sign and return a contract or reply to the offer. Your money will then be transferred to your bank, building society or savings bank account within 21 days.