Dealing with your priority debts

​Budgeting loans and new-style advances

Extra advice:

if you do not receive benefits

If you are no longer on these benefits and still have a budgeting loan, you may be able to include it with your non-priority debts.

Dealing with your non-priority debts

But be careful, the DWP can take an amount out of other benefits instead. These benefits include contribution-based Jobseeker's Allowance, Incapacity Benefit, or contribution-based Employment and Support Allowance, Carer's Allowance, retirement pensions, Maternity Allowance and bereavement benefits. In some cases, the DWP may also be able to make deductions from your wages. If this happens to you, contact us for advice.

If you are on Income Support, Pension Credit, income-related Employment and Support Allowance, income-based Jobseeker's Allowance or Universal Credit, you may have taken out a budgeting loan, short-term advance or budgeting advance. Repayments are taken out of your benefit before you get it. This could mean you will not have enough money to cover your normal outgoings. Think carefully before accepting a loan.

If you already have one of these loans or advances and the amount being taken from your benefit is causing you hardship, contact your local DWP office.

Show them your budget summary and explain the problems you are having. They may be able to reduce the weekly amount being taken out of your benefit. If they refuse, contact us for advice.