Loans for single-parent households

Raising children on one income means every unexpected cost lands on you alone: a school uniform in September, a broken washing machine, a deposit for a new flat after a separation, or a gap between the end of one job and the start of another. With no second earner to fall back on, many single parents turn to credit cards, catalogues or short-term loans just to keep the household running.

This page is for lone parents in the United Kingdom on a low or modest income. It sets out the money you may be missing, the help specific to families, how child maintenance fits in, and how to borrow without putting your children's essentials at risk.

Money single parents are often entitled to

Before thinking about a loan, check that your household is receiving everything it should. A benefits check through Citizens Advice, a council welfare rights team or a single-parent charity can make a real difference.

• Child Benefit for each child, whatever your income. Claiming it also protects your National Insurance record if you are not working.
• Universal Credit, including amounts for children and, if you work, the childcare costs element, which can cover up to 85% of eligible childcare costs.
• Tax-Free Childcare and funded childcare hours, depending on your nation, your child's age and your working hours.
• Council Tax single person discount if you are the only adult in the home, plus Council Tax Reduction on a low income.
• Free school meals and, in some areas, help with school uniform costs from the council.

Our page on help with childcare costs explains how these schemes combine.

Child maintenance as a source of income

If your children's other parent is not contributing, arranging child maintenance can provide regular money that a lender will also count as income. You can make a family-based arrangement, or use the Child Maintenance Service in Great Britain or its equivalent in Northern Ireland, which can calculate and collect payments.

Child maintenance does not reduce Universal Credit, so every pound received adds to your budget. If the other parent has fallen behind, the service can take enforcement action, which may be a better route than borrowing to cover the shortfall.

Grants for babies, school and family emergencies

Several schemes target family costs specifically:

• Sure Start Maternity Grant in England, Wales and Northern Ireland, or the Best Start Grant and Best Start Foods in Scotland, for families on certain benefits expecting or with young children.
• Healthy Start in England, Wales and Northern Ireland for milk, fruit, vegetables and vitamins for pregnant women and young children.
• Council crisis or household support schemes, which often prioritise families with children, for food, fuel and essential items like beds or cookers.
• School-related help such as uniform grants, holiday activity and food programmes and help with school trips.
• Charitable grants for children's items, including funds for families with a disabled child.

See our guides to help with baby essentials and help with school costs.

After a separation

A break-up often brings sudden costs: a new tenancy, removal costs, new furniture, and sometimes debts in joint names. Some practical points:

• Joint debts: each person is usually liable for the full amount of a joint loan or overdraft, not just half. Contact the lender, and ask the credit reference agencies to remove a financial association with your ex-partner once you no longer share finances.
• Housing: councils may help with a rent deposit or advance through a deposit guarantee scheme or Discretionary Housing Payment, so ask before borrowing for one.
• Domestic abuse: if your ex-partner controlled your money or took out debts in your name, specialist support services and debt advisers can help, and lenders are expected to respond sensitively to economic abuse.

If you need to borrow

When grants and benefits do not cover a cost, look first at affordable credit:

• a Universal Credit Budgeting Advance, interest-free and repaid through your payments;
• a credit union, which lends to members on modest incomes with interest capped in Great Britain at 3% a month;
• not-for-profit lenders and local no-interest schemes.

Our page on small loans for households on a budget compares these options. Always look at the APR and the total repayable, and pick a repayment date just after your main income arrives.

Think too about the months ahead. School holidays, birthdays and winter heating all raise family costs at predictable times, so a repayment that feels manageable in spring may be hard to meet in December. Some credit unions let you save a small amount alongside your loan, which slowly builds a buffer for the next emergency.

Credit that can hurt a one-income household

Some forms of credit are marketed heavily to busy parents. Be cautious with:

• Buy now pay later for clothes or school items, which is easy to stack across several providers;
• catalogue and rent-to-own deals for appliances and furniture, often far more expensive than buying second-hand or using a grant;
• high-cost short-term loans taken to cover the end of the month, which can become a repeating cycle;
• guarantor loans that put your parents or friends at risk;
• offers on social media or anyone asking for a fee before paying out a loan.

Check every firm on the FCA Register. If you are offered cash by someone with no authorisation, especially if they ask for your bank card or Child Benefit details, that is illegal lending and can be reported confidentially.

Checklist for single parents

• Have I had a full benefits check, including the childcare element and Council Tax discounts?
• Is child maintenance in place, and is it being paid?
• Have I asked about maternity grants, school uniform help or council crisis support?
• Have I removed any financial link to an ex-partner on my credit file?
• Have I tried a Budgeting Advance or credit union before a commercial lender?
• Can I meet the repayment even in a month with extra child costs?

Single-parent charities, Citizens Advice, StepChange and MoneyHelper all provide free advice if money is already tight or debts are building up.