From the 1st of April 2013 the Social Fund was disbanded and the crisis loan system was closed down following the first changes outlined in the new welfare reforms coming into effect.crisis-loans-replacement

The changes saw the budget that would have been used for emergency loans devolved to Local Authority run schemes offering differing levels of support and eligibility criteria depending on where you live in the UK.

However what the DWP have not advertised is the fact that not all of the previous Crisis Loan provision has been farmed out and that they have a Crisis Loan Replacement already active

Is there a Crisis Loan replacement?

A specific area of loans for those who had made a claim to benefit and who were without any money during the period lasting between 10 days and 4 weeks before the benefit centre had decided on a claim was still available although the crisis loan replacement is listed under a different name.

The Crisis Loan Replacement called a Short Term Benefit Advance is specifically administered by the Department of Work and Pensions as a direct replacement for the old Alignment to Benefit Crisis loan system and is available to anyone who is awaiting a claim to income based benefit( including Jobseekers Allowance, Income Support and Employmnet and Support Allowance).

The Crisis Loan Replacement scheme ( or SBTA’s) have not been publically advertised by the Jobcentre or by the DWP, however it is clear that the provision has been intruduced and written into the legislation underpinning the Welfare Reforms.

To Make an application to the Crisis loan Replacement scheme you will need to call the Benefit Delivery Centre Dealing with your claim to benefit and specifically ask for a Short Term Benefit Advance Loan and the application will be taken over the phone and your decision given to you usually within 48 hours and payment ( assuming that you qualify for the loan) will be made directly into your bank account on the same working day.