In 2025, the Department for Work and Pensions (DWP) is offering a £348 Budgeting Loan specifically for single claimants in the UK. This support aims to help individuals cover essential or unexpected costs without taking on high-interest debt.
The DWP loan is part of the government’s ongoing welfare support initiatives to assist low-income individuals during financially challenging times.
Here’s everything you need to know about the £348 Budgeting Loan, from eligibility criteria and application steps to repayment details.
What Is the DWP Budgeting Loan?
A Budgeting Loan is an interest-free loan from the DWP that helps eligible people on low income manage sudden or necessary expenses. The £348 Budgeting Loan for singles in 2025 targets individuals who are not in a couple or family unit and may not have access to additional support.
It can be used for essential costs such as:
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Household items (like furniture or white goods)
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Rent in advance or moving costs
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Travel costs for work or interviews
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Clothing or footwear
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Maternity-related expenses
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Funeral costs
This loan is not a grant — it must be repaid — but the repayment is structured fairly through automatic deductions from benefits.
Who Can Apply for the £348 Budgeting Loan?
To qualify for the DWP £348 Budgeting Loan, applicants must meet the following criteria:
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You are a UK resident and at least 18 years old
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You have been receiving one of these benefits for the past 6 months:
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Income Support
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Income-based Jobseeker’s Allowance (JSA)
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Income-related Employment and Support Allowance (ESA)
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Pension Credit
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You are not currently receiving Universal Credit (UC) — UC recipients must apply for a Budgeting Advance instead
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You have no outstanding Budgeting Loan repayments over the limit allowed
The DWP will check your benefits history and any existing loans when assessing your application.
How to Apply for the DWP £348 Loan
Applying for the Budgeting Loan for singles in 2025 is straightforward. You can choose from three methods:
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Online – Complete the application form on the official GOV.UK Budgeting Loan portal
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Paper form – Download and fill in form SF500, then post it to your local Jobcentre Plus
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By phone – Call the DWP Budgeting Loan helpline to request a paper form or help with online application
You’ll need to provide personal details, benefit information, and your reason for needing the loan.
Once submitted, most applications are processed within 7–15 working days.
How Is the £348 Loan Paid and Repaid?
If your application is successful, the £348 loan will be paid directly into your bank account. You will then receive a repayment plan, typically spread over 104 weeks (2 years).
The repayment is interest-free and will be deducted automatically from your benefit payments, making it manageable and predictable.
If your benefit stops during the repayment period, the DWP will contact you to arrange an alternative repayment plan.
Key Benefits of the DWP £348 Budgeting Loan
The £348 DWP loan for singles offers several advantages compared to commercial borrowing:
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No interest or hidden fees
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Easy application via online or post
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Tailored repayment from benefits
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Helps cover essential or emergency costs
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Supports those with limited or no credit history
This makes it an effective and safe financial tool for eligible individuals who need temporary support.
DWP Budgeting Loan vs Universal Credit Budgeting Advance
If you’re on Universal Credit, you cannot apply for this Budgeting Loan. Instead, you may be eligible for a Budgeting Advance, which is a similar short-term interest-free loan available through UC.
Budgeting Advances offer similar help but have different eligibility criteria and repayment terms.
Always check with your local Jobcentre Plus to determine which scheme applies to your situation.
FAQs
What is the DWP £348 Budgeting Loan?
It’s a one-time, interest-free loan from the DWP available to single UK residents on specific income-based benefits, designed to help with urgent or essential expenses.
Who qualifies for the £348 DWP loan?
Single individuals receiving Income Support, income-based JSA, income-related ESA, or Pension Credit for at least 6 months are eligible.
How do I apply for the DWP Budgeting Loan?
You can apply online, by downloading the SF500 form and sending it by post, or by calling the DWP to request assistance.
How long does it take to receive the loan?
Most applicants receive a decision within 7–15 working days after submitting their completed application.
Do I have to repay the £348 loan?
Yes, it must be repaid, but it is interest-free and the DWP deducts repayments directly from your regular benefit payments.
Click here to know more.