DWP giving out £812 payment to people who claim these four benefits

A new £812 loan the Department for Work and Pensions has launched aims to help benefits claimants even more this year, the government department has said.

The Department for Work and Pensions is handing people on benefits an extra £812. A new £812 loan the Department for Work and Pensions has launched aims to help benefits claimants even more this year, the government department has said.

Those eligible do not need to pay the loan back straight away, the DWP said. The DWP said: "A Budgeting Loan is interest-free so you only pay back what you borrow. The repayments will be taken automatically from your benefits.

"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."

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It can help with rent, costs linked to moving house, maintenance, improvements, or security for your home, travelling costs within the UK and those linked to getting a new job, household goods and even maternity and funeral costs.

It can help you repay hire purchase loans taken for the above items. If you get a budgeting advance, you'll get reduced Universal Credit payments until you've paid off what you borrowed. This will normally be over 12 months.

You may be eligible for a Budgeting Loan if you claim certain benefits from the DWP. These include Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, or Pension Credit. After announcing the payments, 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.

"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."