Crisis Loan- What are they?

On our Crisis Loan posts over the last year we have seen the same questions asked over and over again, and given that the DWP website is so difficult to actually navigate and find information on we have decided to give you a quick run down of the main points of a Crisis Loan.


What is a Crisis loan:

A crisis loan is money that you can apply form from the Government to help with a short term financial difficulty.


Who can apply:

Everyone can apply but it is aimed at

  • Those already on state benefits
  • Those waiting for a benefit claim decision
  • Those just coming off benefits

If you are working and have already been paid your first wage, you can apply for a loan but you must show

  • That you have no money
  • That you have no access to loans
  • That your situation could constitute a risk to health and safety.


How to apply for a Crisis Loan

You can apply By telephoning this number

08000 327952

Or filling out a paper application ( Download one or ask for one to be sent to you)


What can I apply for?:

Telephone applications are for Immediate need- so think food/gas/ electric or rent in advance if your moving in under 48 hours.


How long does it take?:

  • Telephone applications are decided whilst your on the phone ( 20-45 minute call usually) and payment made the same day if accepted
  • Paper applications take around 10 days.


How Much is a Crisis Loan?:

  • Living expense loans are paid at a daily rate of £5.78
  • Rent in advance a re limited to £1500 ( but are more often £400-£600)


How Do I pay it back?:

If you are on benefits around 7% of your benefits will be used to pay of your Social Fund debt each week

If you are no longer on benefits you can make arrangements with Debt Management to pay back outstanding loans.


What If I’m Refused?:

There are two stages to an appeal that can be made to ask for the decision to be looked at again

  • Ask for a review- these are done by other decision makers in the same office as the person that turned you down
  • If you are refused again, ask for an independent review- these are done by an outside organization, usually take 48 hours and are generally awarded to the person appealing (you)

IF YOU HAVE ANY FURTHER QUESTIONS PLEASE NOTE THEM BELOW AND WE WILL RESEARCH AND GET BACK TO YOU.