The Department for Work and Pensions (DWP) is providing a new loan scheme that offers people on benefits an additional £812 boost. This measure, launched by the government department, is designed to further support benefit claimants throughout this year.

According to the DWP, recipients of the loan are not required to pay back the sum immediately. The Department has stated, “A Budgeting Loan is interest-free so you only pay back what you borrow. The repayments will be taken automatically from your benefits.”

They added, “The amount you repay is based on your income – including any benefits you receive – and what you can afford. After you apply for a Budgeting Loan, you’ll get an email, text or letter telling you if you’ve been offered a loan. This explains how much your weekly repayments will be if you accept the loan.”

This assistance can be used towards various expenditures such as rent, moving house costs, home maintenance, improvements or security, travel within the UK, job-related costs, household items as well as maternity and funeral expenses.

It also serves to help with repaying hire purchase debts incurred for these particular necessities. For those who opt for a budgeting advance, this will result in reduced Universal Credit payments until the borrowed amount is fully repaid, typically over a period of 12 months, reports Birmingham Live.

If you are on certain benefits from the DWP, you might be entitled to a Budgeting Loan. These benefits cover Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, or Pension Credit.

Following the announcement of these payments, the former Conservative Party Chancellor Jeremy Hunt said in March: “Nearly one million households on Universal Credit take out Budgeting Advance loans to pay for more expensive emergencies like boiler repairs or help to get a job.”

He added, “To help make such loans more affordable, I have today decided to increase the repayment period for new loans from 12 months to 24 months.”

Read more @msn