The Department for Work and Pensions (DWP) has confirmed that eligible benefit claimants in the UK may access a one-off financial boost of up to £812 through interest-free loans designed to help with essential living costs. While this may sound like a surprise bonus, it is part of the long-standing Budgeting Loan and Budgeting Advance schemes—available to individuals on low incomes receiving specific benefits.

Here’s everything you need to know about how to apply, who qualifies, and when to expect payment.

What Is the £812 “Bonus”?

The figure of £812 is the maximum amount that certain eligible claimants with children can receive through a Budgeting Loan or a Budgeting Advance.

These are interest-free loans provided by the government to help people cover necessary, one-off expenses such as:

• Furniture and household items
• Clothing or footwear
• Rent in advance
• Costs linked to moving house
• Maternity expenses or funeral costs
• Work-related travel or equipment

Although not technically a bonus or grant, the benefit lies in the zero-interest nature of these loans, making them an attractive support option for struggling households.

Who Is Eligible?

Budgeting Loans

To qualify for a Budgeting Loan, you must have been receiving one of the following income-related benefits for at least 6 months:

• Income Support
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Pension Credit

You are not eligible if you are currently receiving Universal Credit in that case, you may apply for a Budgeting Advance instead.

Loan Amounts for Budgeting Loans:

• Up to £348 – if you’re single
• Up to £464 – if you’re part of a couple
• Up to £812 – if you have children

The final loan amount depends on your ability to repay and any existing loans you may already have from the DWP.

Budgeting Advances (For Universal Credit Recipients)

Those who receive Universal Credit may apply for a Budgeting Advance instead. To qualify, you must:

• Have been on Universal Credit (or similar benefits) for at least 6 months
• Have earned less than £2,600 in the past 6 months (£3,600 for couples)
• Have no outstanding Budgeting Advance repayments

Loan Amounts for Budgeting Advances:

• Up to £348 – single, no children
• Up to £464 – couple, no children
• Up to £812 – with children

Repayments are deducted directly from future Universal Credit payments over a period of up to 12 months.

When Will Payments Be Made?

There is no fixed national payment date for these loans. Once approved, payment is typically made within a few working days directly into the claimant’s bank account.

Decisions on eligibility and payment timing may depend on your current benefit situation and outstanding debt to the DWP.

How to Apply

Budgeting Loan Application:

You can apply:

• Online via GOV.UK
• By downloading form SF500 and posting it
• Through your local Jobcentre Plus

Budgeting Advance Application:

You can apply:

• Through your Universal Credit online account
• By speaking to your Work Coach
• Via the Universal Credit helpline

Things to Consider

Before applying, it’s important to remember:

• These are loans, not grants. They must be repaid.
• Repayments will automatically come out of your benefit payments.
• If your financial situation changes, repayments may be adjusted.

Although it’s not “free” money, the £812 loan can be a crucial buffer for those struggling with sudden or urgent costs especially during times of inflation or household crisis.

Final Thoughts

While the £812 figure has recently made headlines, it’s essential to understand that this is a maximum loan amount, not a universal payout. The DWP has long provided Budgeting Loans and Advances as part of its broader welfare safety net. If you’re receiving benefits and facing unexpected expenses, this support could provide essential breathing room.