Making an application

This site offers advice and call forwarding options, and we are in no way affiliated with any organisation mentioned on this website. Calls to 084 numbers cost up to 7p per minute plus your network access charge.

Crisis Loans are interest free loans issued by the Government to those who are in in financial difficulty and can find no other source of income to prevent a risk to the health and safety of themselves or family.

Anyone can apply for a crisis loan, however they are generally issued to those who are claiming means tested benefits form the Department - we are not affiliated with any organisation mentioned. of Work and pensions as it is accepted that this client group are less likely to be able to secure an alternative source of income in the short term.

The maximum crisis loan that can be awarded to any family unit is £1500.00, this can be made up of a single loan or can be made up of several smaller loans taken out that have yet to be paid back.

Two possible ways to apply for a crisis loan are to send in a paper application, or if you are in an immediate emergency situation that you can apply over the telephone on 0800 0327952 for a same day decision.

Telephone applications generally take 45 minutes and the person that you speak to when making your application will make the final decision as to whether you can be awarded a crisis loan or not.

If you are granted a payment, the decision maker will attempt to arrange for the award to be paid into your bank account within 2 hours of the decision so that you can draw on it the same day.

When granting the loan the decision maker will discuss how the balance will be repaid, this is generally set at 7% of your income with a view to recovering all money owed within 104 weeks from the date of the loan.

If you agree to take the loan out and are on e benefits the repayments will be set up automatically with the benefits section that handle your claim, this can take several weeks but they will notify you when the repayments start with a reposed schedule.

Most Crisis loans are awarded on a daily basis, this means that if you are without income at the time of your call but expect your benefits to be paid in 3 days, that your award will be set to cover those three days and will be limited at a rate of 30% of your usual benefits. You can apply for additional help with your heating and electricity if you are on pre paid meters and have already used your emergency credit to clear the outstanding debt and resume your services.

Eligible Loan Deductions Scheme

This site offers advice and call forwarding options, and we are in no way affiliated with any organisation mentioned on this website. Calls to 084 numbers cost up to 7p per minute plus your network access charge.

The DWP have recently had a change of policy that could see those on low incomes become eligible for interest free loans from 3rd parties that can then be deducted from Benefits.

 

Basically the Eligible Loan Deductions Scheme idea is: If you take a loan from a specific type of charitable, or not for profit organisation and are finding it difficult to manage repayments yourself, that the DWP will spread the cost by making deductions  from your benefit before you get it.

This is great news as it allows those who can not get a crisis loan to be able to secure alternative income when they find themselves in an emergency.

As ever the DWP have publicised this change without any fanfare, ( to be honest we only found out today)

To get an understanding of what the DWP are agreeing to do we have found a link to   Eligible Loan Deductions Scheme terms issued by the DWP.

 

Crisis Loan Appeal

This site offers advice and call forwarding options, and we are in no way affiliated with any organisation mentioned on this website. Calls to 084 numbers cost up to 7p per minute plus your network access charge.

If you have applied for a Crisis Loan for living expenses or for help with rent in advance and have been refused the loan then you can appeal, and in most cases have a good chance of the decision being overturned in your favour.

The rules around crisis loans are pretty clear, and there are some rules that you will not be able to get around for example if you already owe more than £1500.00 to the social fund then your crisis loan application will be turned down, and although you can appeal, your appeal will not be successful as the law state stat you can not owe more than £1500.00 at a time.

However if you have been turned down due to the way they the decision maker has interpreted your application ( the discretionary part of the process )that you can ask for the decision to be looked at again.

 

The appeal process:

The process that you must go through if turned down for a Crisis loan is split into two parts.

  1. The Review- This is when you disagree with the decision, and must be done in writing and is when another Decision Maker ( The reviewing officer) looks at your application and makes a new decision based on the evidence supplied, and also checks that the original decision is correct in fact and law. the best way to ask for a review is to fax a letter stating your reasons to the Benefits Centre from your local Jobcentre. The process should take 48 hours.
  2. An Independent Review: This is the step after you were turned down initially AND have already been turned down by the reviewing officer. If you have been told by the reviewing officer that they can not change the decision that all you need to do is ask that they refer your appeal to The Independent Review service who will take a 3rd look at your crisis loan appeal and again see if the law has been applied correctly- HOWEVER the IRS tend to side with the customer as they state  that ” The customer has the right to be believed” so if you were turned down because the decision maker did not believe what you were saying, but could not prove otherwise then the IRS are more than likely to overturn the decision when you appeal.

Crisis Loan Advice

This site offers advice and call forwarding options, and we are in no way affiliated with any organisation mentioned on this website. Calls to 084 numbers cost up to 7p per minute plus your network access charge.

A Crisis Loan is money that is made available by the government to help to alleviate an unforeseen financial disaster or emergency that you are unable to cope with your self.

What is a Crisis Loan?:

A crisis loan is an interest free lump sum payment form the Government that is administered bye the Department of Work and Pensions in the UK

Who can Apply?:

In theory anyone can apply for a crisis loan, however they are aimed at those who are unemployed and who are claiming state benefits like Jobseekers Allowance, Income Support or Employment and Support Allowance.

How do I apply?:

You can apply in one of two ways; you can either request and complete a paper application for ( SF401) and return this to your local Social Fund processing center via the Job Centre or you can call the free national telephone number 08000 327952.

How long does it take for a decision?:

A paper application can take anywhere up to two working weeks and is generally for larger amounts for example rent in advance, a telephone application should take around 45 minutes.

When do I get paid?:

If you have sent in a paper application and have been awarded a crisis loan then you should expect to see your payment within 15 days, if you made an application over the phone then you payment could be with you in 3-4 hours from the call.

How much can I apply for?;

The maximum amount that any one household can apply for is £1500.00 at any time, although awards are generally smaller than this.

When do I have to pay it back?:

The period that you repay your loan over depends on your income, but is generally tailored to complete within 104 weeks.

What if I am turned down?:

If your application is refused you can apply for a review, this is when a separate decision maker looks at your application and makes a second decision. If the reviewing officer turns your down, you can then ask for your application to be looked at for a 3rd time by an independent body ( the independent review service)