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You can apply for a crisis loan if you need financial help because of an emergency or disaster. This is an interest-free loan to cover the cost of essential things that you can't afford. If you get one, you will have to pay it back. You can apply for up to £1, 000.
What are crisis loans for?
You can apply for a crisis loan if you need money because of an emergency or disaster. For example, there has been a fire in your home. It could help you pay for essential things that you can't afford, such as:
- food or clothing,
- rent in advance if you have to move,
- charges for staying in a bed and breakfast,
- rent in a hostel,
- minor repairs and improvements linked to the emergency or disaster.
You won't get a crisis loan for most other housing costs. For example, mortgage repayments, your rent or rates.
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Who can apply?
You have to be aged 16 or over to apply for a crisis loan. You don't have to be claiming any benefits. You normally have to show that the health and safety of your household would be at risk if you don't get a loan. For example, you will have to sleep on the streets because you can't pay for a place in a hostel or bed and breakfast.
Your chances of getting a crisis loan (and the amount you get) depend on the available Social Security Agency budget, your personal circumstances and other money that you own. Your loan is reduced if:
- you have savings over £500,
- you have savings over £1, 000 if you or your partner are over 60,
- you have not repaid a previous loan from the Social Fund.
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How do I apply?
Crisis loans are given by the Social Fund. You can apply for a loan for up to £1, 000. You can make an application at your local Social Security or Jobs & Benefit Office. Application forms are also available online at the Social Security Agency website.
A crisis loan is usually processed on the day you apply.
The Social Security Agency or Jobs & Benefits Office must accept your application form. They can't tell you you're not allowed to apply without giving you an application form and interviewing you. Get advice as soon as possible if this happens.
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What are my chances of getting a crisis loan?
There is a limited amount of money available, so it isn't easy to get a crisis loan. Get advice if you need a crisis loan. An adviser can:
- help you convince the Social Security Agency that you should be a priority for a crisis loan,
- check whether you can apply for a community care grant instead. You won't have to pay back a community care grant,
- explain the application form,
- help you work out how much you need to ask for,
- help you to appeal if the Social Security Agency says it can't help you.
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How is the loan paid back?
You have to be able to repay the money you borrow within 104 weeks. The loan is interest free, so you will only have to repay the amount you originally borrowed. If you are on benefits, a fixed amount will be taken out of your income support or jobseeker's allowance until the loan has been repaid. You won't get a loan if you will not be able to repay it.
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What if my application is turned down?
If you are not happy with any decision made on your application and want to ask for a review, get advice. It is often difficult to get decisions about the Social Fund changed, but an adviser could help you increase your chances of getting a loan.
If you want the Social Security Agency to review the decision you must:
- apply in writing,
- apply within 28 days of the date the decision was given,
- explain why you think the decision was unfair.
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What happens if the Social Security Agency doesn't change the decision?
If the Social Security Agency doesn't change the decision, you can ask the Social Fund Inspector to look at your application for a crisis loan. The Social Fund Inspector is independent and can change the Social Security Agency's decision if it was wrong. Find out more about contacting the Social Fund Inspector.
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