DWP can give you £812 to help with emergency costs in your home - see if you qualify for cash

If you need money to cover an emergency cost in your household, you might be eligible for a scheme run by the Government.

The Department for Work and Pensions (DWP) can give out a loan worth hundreds of pounds if you claim benefits and are struggling for money. And the cash can be used for common household expenses.

Budgeting loans are available to people who need help to pay for costs such as furniture, clothing, necessary work, and advance rent payments. And they are interest-free, reports WalesOnline.

These loans are different from a budgeting advance, which is also available for those who qualify for it. Scroll down to see the difference between both schemes.

The information below explains what the money provided by the DWP can be used for. There are also rules about eligibility and the criteria you need to meet.

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What is a budgeting loan?

A budgeting loan is granted to benefit claimants to help cover essential items they are struggling to afford. It is paid to those who have been claiming the following benefits for at least six months:

• income support
• income-based jobseeker's allowance
• income-related employment and support allowance
• pension credit

Examples of essentials you can pay for with a budgeting loan include:

• Furniture in your home
• Household white goods such as a washing machine, cooker, hoover, or fridge
• Clothing or footwear
• Rent you have to pay in advance
• Any moving house costs such as a removal van
• Essential work needed on your home including maintenance
• Security for your home such as new keys or locks
• Some travelling costs in the UK
• Things that will help you get a new job such as a suit for interviews or taxi fares to get to an interview
• Costs due to pregnancy and childbirth
• Costs for a funeral

You cannot receive a budgeting loan if:

• you are claiming Universal Credit
• you get new style jobseeker’s allowance or new style employment and support allowance
• you’re involved in industrial action (for example a strike, walkout, or lockout)
• you owe more than £1,500 in total for crisis loans and budgeting loans

The minimum amount you can borrow is £100. You could receive up to:

• £348 if you’re single
• £464 if you have a partner
• £812 if you or your partner claim child benefit

The amount you could receive 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 over), or are repaying an existing budgeting loan or crisis loan. The funds are transferred directly into the same account where you receive your benefits.

These loans are interest-free, meaning you only repay the amount you borrowed, with repayments automatically deducted from your benefits. The repayment sum is determined by your income, including any benefits you receive, and what you can afford. Typically, the loan must be repaid within two years. More information about budgeting loans can be found here.

What is a budgeting advance?

A budgeting advance is an interest-free loan available to those claiming Universal Credit who need assistance covering unexpected or essential costs. Budgeting advances function similarly to budgeting loans, but the rules vary slightly.

You can apply for a budgeting advance for the following reasons:

• emergency household costs such as replacing a broken cooker
• getting a job or staying in work
• funeral costs

The amounts available through a budgeting advance are identical to those of a budgeting loan. Repayments for budgeting advances are made through your regular Universal Credit payments, which will be reduced until the advance is fully repaid.

If you stop Universal Credit, you will need to arrange an alternative repayment method, such as deductions from wages or other benefits you may be receiving. Here are more details.