Crisis Loans are interest-free, repayable loans from the Social Fund.
You don't have to be on benefits in order to claim a Crisis Loan, but if you have other means of meeting your financial needs, you'll be expected to use them first. You won't be paid a Crisis Loan if the Department for Work and Pensions (DWP) thinks that you're unlikely to be able to repay it. You must be at least 16 to receive a Crisis Loan.
There are no set rules about what a Crisis Loan covers, but they are intended to support you when:
- you're experiencing an emergency or a disaster
- the loan will help you prevent serious damage to, or reduce serious risk to, your health or safety (or that of your family if you have one)
- you do not have enough money to cover the costs following an emergency or disaster
A disaster could be an event such as major flooding, explosion, chemical leak or house fire. An emergency could include a sudden change of circumstances that means you can no longer meet the immediate financial needs of your family.
You can be awarded a Crisis Loan to help you meet costs that fall into one of the following categories:
- help to pay rent, board and lodging or hostel charges in advance
- help with day-to-day living expenses, such as urgent fares to hospital, travel expenses in an emergency or money for food
- help to pay for items or services in the event of a disaster
Crisis loan eligibility
You may also be eligible for a Crisis Loan if:
- you’re leaving institutional or residential accommodation, have been awarded a Community Care Grant and you need to pay a landlord (who isn't a local authority) rent, board and lodging or hostel charges in advance
- you’ve been on benefits for less than 26 weeks and can't get a Budgeting Loan to help you buy an essential item
You can't claim a Crisis Loan for certain items. These are listed on the discretionary Social Fund page. You can't receive a Crisis Loan if you are in hospital, residential care, are a prisoner on temporary release or are in certain types of full-time education.
Before you're given a Crisis Loan you'll be expected to use up any savings you have and seek wages in advance if you're working, or commercial credit if you're not on benefits and are able to pay it.
You can have no more than three Crisis Loan awards for general living expenses in a 12-month period.
Claiming
If you need a Crisis Loan to help you with daily living expenses or because you urgently need rent in advance, you should contact Jobcentre Plus on 0800 032 7952 or textphone 0800 032 7958, Monday to Friday, 8.30am to 4.30pm. They may then send you a form or complete the application over the telephone.
For all other Crisis Loans, where there is no immediate need, you should complete a Crisis Loan application form. For a Crisis Loan in the event of a disaster, you should complete an SF300 form (PDF, 29KB). For a Crisis Loan to help with day-to-day living, you need to complete an SF401 form (PDF, 156KB). If you’re applying for a loan to pay rent in advance, you need to complete an SF401R form (PDF, 169KB).
There is no set amount you may be able to borrow; however, your personal circumstances, savings and outstanding loans will be taken into account.
The loan you are awarded will usually be paid into the same bank account as your benefits. As a last resort, you may be given a giro cheque from your local Jobcentre.
Repayments
Loans usually need to be repaid within two years. You can pay your loan back through some types of benefit, or you may need to negotiate a repayment with the DWP.
If you disagree with the decision
If you disagree with the decision you don't have a right of appeal, but there is a review system. You must apply for a review within 28 days of receiving a decision on your claim. You may wish to seek independent help and advice. For more information see Challenging decisions on the Discretionary Social Fund page.
The official online source of government information on benefits is Gov.uk.