What benefits count as income for loan approval in June 2025 

The government provides benefits to those who do not have a stable income source. Mostly, those who lose their job are provided benefits so they can manage to get by. The cost of living is high. It is not easy to rely on savings until you land a new job, and therefore, it makes sense to employ some benefits. Benefits are necessary because they could be part of your income when you have to borrow money.  

When you are out of a job, and your savings have fallen short of cash, you will not be approbated. This is because you do not have sufficient money for debt settlement. However, if you have some income, your application will not be refused. A part-time job or a side gig could come in handy. What if you do not have that? Here comes the role of benefits. Your lender would regard your benefits as income. Based on the size of benefits, you would be entitled to receive a loan amount. 

Since the loan is a paltry sum, you would be allowed to repay the debt in fell one swoop. The repayment length cannot be more than a month because of them being exiguous. Now the question is what kinds of benefits could be considered your income: 

Employment and support allowances (ESA) 

These benefits are aimed at the disabled and those with a medical condition. These benefits are offered to even those who are employed and self-employed, provided their medical conditions are getting in their full potential for working.  

• You will be able to claim up to £72.90 per week if you are aged under 25 and £92.05 if your age is 25 or over.  

However, this is not the fixed amount of money you would be offered. It could be affected by how much you get paid. If you obtain more than £85 per week from a private pension, half of the amount received beyond £85 will be deducted from your ESA account. However, no benefit will be awarded if your private pension income is sufficient.  

Personal independence payment 

A personal independence payment is aimed at those who are disabled, suffering from a mental health condition or have difficulty doing daily tasks because of their physical conditions so they can easily meet the costs of living. Most of the benefits are not entitled when you are receiving others, but this condition is not applied to personal independence payments. It means you are entitled to these payments even if you are on other benefits and employed.  

This benefit covers both types of people: those who need help with daily tasks and those who need assistance with mobility. The following is the weekly rate you would be eligible for: 

	Minimum weekly rate	Maximum weekly rate
Daily living help	£73.90	£110.40
Mobility help	£29.20	£77.05

Jobseeker allowance 

Jobseeker allowance is aimed at those who lose their jobs. These allowances would help you meet your daily living expenses until you land a new job. Bear in mind that you will have to meet the eligibility criteria to obtain a jobseeker allowance.  

• If you are aged 24 or under, you will be receiving a weekly allowance of up to £72.90. 

• If you are 25 years old or over, you will be entitled to up to £92.05.  

Unemployment benefits are generally offered for six months. If you continue to remain unemployed, no benefits will be provided. Your savings will not get in the way of receiving these benefits.  

Even if you do not have any other benefits, you can use them as your income to borrow money in case an emergency crops up. You could apply for loans for people on benefits with no credit check. However, make sure that you will not struggle with payments as they are settled in fell one swoop within a short span.  

Attendance allowance 

Attendance allowance is also aimed at those who are unable to look after themselves because of disability or a mental condition. You can qualify for up to £110.4 weekly allowance provided you meet the eligibility criteria.  

Child benefit 

Child benefits could also be used as income to borrow money. You will have to meet the following conditions to receive child benefits: 

• You are bringing up a child under 16 or under 20 who is on approved education.  

There is no limit to the number of children you have, but only one person would be able to claim child benefits. The weekly benefit rate is £26.05 if you have only one child and £17.25 if you have multiple children.  

Summing up 

You can use these benefits as your income in order to borrow money. It is enjoined that you take out a loan using these benefits from a UK direct lender only when you are completely certain that you will not plunge into a deep debt hole.