Crisis loans
What are they?
Crisis Loans are interest-free loans which can be paid to help people manage short term emergencies. They have to be paid back.
Examples of situations where a Crisis Loan could help include:
- loss of money
- benefit has been stopped
- compulsory unpaid holiday
- disaster (for example, fire or flood)
- need for emergency travel expenses
You must be aged 16 or over, and you must be able to show that you do not have sufficient money or other resources to meet the immediate short term needs of yourself and/or your family. You must be able to show that the Crisis Loan would prevent serious risk to the health and safety of you and/or your family.
Certain items are excluded, including:
- Holidays
- Mobility needs (not including travel expenses)
- Telephone-related expenses
- TV-related expenses
- Car-related expenses (except where emergency travel expenses are considered)
You must be likely to pay the money back.
To find out whether you could qualify, you can contact the Benefits Maximisation Service for a full benefits check.
How much is it?
The loan cannot be more than £1,500. There is no legal minimum.
If you already have one or more loans the amount you are awarded may be reduced.
How do I apply?
The Jobcentre Plus encourages people to apply for a Crisis Loan by telephone. However, if this is not appropriate for you, you must be offered an immediate appointment at your local Jobcentre Plus.
If you are told that you won't qualify for a Crisis Loan before you have completed a claim, this is not an official decision, and you should insist on being able to complete a claim form.
What if I am not satisfied with the decision?
If you are refused a social fund payment or think it should have been paid at a higher rate you can write asking for it to be reviewed within 28 days from the date on the decision. This means that a different Decision Maker will look at your claim again.
It is very important that you reply within 28 days, as you may not be able to challenge the decision otherwise.
If the second Decision Maker cannot revise the decision in your favour, you will be asked if you want an interview by telephone. This means that you can explain why you think the decision is wrong in more detail, and the Decision Maker can ask questions. You can ask for the interview to be held at a Jobcentre Plus office, or in your own home if using the telephone is difficult for you.
The Benefits Maximisation Service can also hold telephone interviews on your behalf.
If you are still unsatisfied once the revision has taken place you can ask for a further review by the Independent Review Service. This usually has to be on a form called ISR1, which is available from any DWP office. You can also ask the DWP to post one to you. Again, you must make your appeal within 28 days of the date of the new decision.
Our Benefits Maximisation Service can help you with revisions and appeals.
What if my circumstances change?
Your claim for a social fund payment can only be considered based on your circumstances at the time of the claim. If your circumstances have changed, so that you now qualify for a payment, you will need to make a new claim.
For an easy way to find out which benefits might apply to you and your circumstances go to What can I claim?
The Benefits Maximisation Service can provide personal advice on what you may be entitled to and help you make a claim. For more information go to Benefits Maximisation Service
Disclaimer
Although every effort is made to ensure the information on these pages is accurate and up to date, it should not be treated as a complete and authoritative statement of the law.