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.