Crisis Loans

[lucy.c40]

hi all , my other half put in a claim for pension credit 9 wks ago and finally we had someone out today ( really nice ) from pensions and said more or less we have a claim but it will be another 10 days before payment can be made , now i have 2 children of school age and we are living on £85 ctc and £33 c/b a week ..that is all i have coming in , i applied for a crisis loan last week as hardly any money for food as bank took a £35 charge , i have noticed another charge today and have now been left with no money at all till nxt monday , have very little food and need to top up my gas/electric , anyway how likely is it that i could get another loan as im sure my money should be in my account nxt week and could pay them off.

[loan_ranger]

You can claim up to 3 CL's for living expenses in any 12 month period.

You cannot be refused under the other "repeat applications - exclusions" because there has been a change in your circumstances which was un-foreseeable and beyond your control i.e. more unexpected bank charges.

 

This link will take you to the Guidelines for Decision Makers.

 

Regards, Paul.

Edited April 21, 2010 by loan_ranger
added link

[lucy.c40]

so i could apply for another , gosh i really feel bad to ask for another but am so desperate ,have borrowed all i can from my family so cant go down that route ,just need enough till monday and hopefully should get our backpay thru nxt week .

[ErikaPNP]

Crisis loans for alignment to benefit (including pensions) are excluded from the 3 applications rule.

[loan_ranger]

The regs also allow them to award a higher amount where it involves fuel charges:

 

Fuel expenses

289. Normally it is not appropriate to consider the award of a CL for a debt. However, sometimes as part of an application for living expenses, applicants state that they need a fuel powercard or token which includes:

• an amount to make up for having used emergency supplies of fuel; and

• an amount to cover forward/future consumption

290. However, fuel expenses to make up for having used emergency supplies of fuel as above are, in these situations, a current debt. Where appropriate they should be considered and awarded separately so that the customer does not need to meet these from the CL award for living expenses (which are subject to restriction under Direction 18 ).

291. Thus where an applicant applies for a CL in respect of living expenses and indicates that this is to include the cost of a fuel if an applicant indicates that they want a fuel powercard or token in an application for living expenses, you must identify as far as possible, the amount needed for the fuel arrears and consider these under Direction 3 as immediate short term needs for an item or service. The balance of the fuel powercard or token (the ongoing or forward fuel consumption) should then be considered as part of immediate short term needs for living expenses.

Edited April 27, 2010 by loan_ranger
DWP Social Fund Guide ammended April 2010

[RaeUK]

Ah, thankyou Lucy for bringing this subject up. I think it may be something I need to have a close look at as I'm running out of everything fast!

[onestressedwoman]

Budgeting Loan ??? then you repay bit by bit - Crisis loan the same you don't need to offer to pay this back all next week because you will only find yourself in the same position then !

 

You can get crisis loans for lots of things look on gov website google it

 

Hope it goes well I've been in the same boat on many occassions

 

If you have children the maximum loans in £'s they can give you is £1500 I think but gov website will tell you also just incase anyone hasn't told you - you can write to the bank and tell them this is your benefit money and is inalienable to any debtor but I think you have to do this with every payment from dwp into account tiresome but i'm sure there must be some way you can do a standard letter and fax it to them every week

 

I'm not an authority but I am sure that they cannot take benefit money

 

Thinking of you I'm on beans on toast and pasta week this week

 

OSW

[RaeUK]

Well pointed out, onestressed. I use Nationwide who have a fairly good policy and return charges if you are on benefits only. I had to fill out an income / expenditure sheet for them...

Best wishes

Rae.

[loan_ranger]

@ Rae, what you said about bank charges and benefits is correct, however

CL's for living expenses are delivered at your nearest JCP as a cheque to be cashed at the Post Office, therefore the bank doesn't get involved.

[RaeUK]

Thanks LR. I've made a note to enquire with my Job Centre if I'm still without benefits come Monday. I've put in another ESA claim this week and can't for the life of me remember how long they take to process...

Best wishes

Rae

[onestressedwoman]

@ Rae, what you said about bank charges and benefits is correct, however

CL's for living expenses are delivered at your nearest JCP as a cheque to be cashed at the Post Office, therefore the bank doesn't get involved.

 

 

You have to request this now ! and have to make sure the giro is uncrossed don't forget this otherwise you will have to get it reissued !!

[onestressedwoman]

Thanks LR. I've made a note to enquire with my Job Centre if I'm still without benefits come Monday. I've put in another ESA claim this week and can't for the life of me remember how long they take to process...

Best wishes

Rae

 

 

Don't wait phone them !! and go to belfast not local JCP !!!

 

Call them and call them and call them write to them and fax it across I'm a very patient person too but we are stupid to be !!

 

Budgeting loan doesn't ask you to account for purpose of request check it out they don't tell you these things

 

 

Do you have a mortgage if so you need to get help with that from them too

Edited April 21, 2010 by onestressedwoman
Extra advise

[RaeUK]

Thankyou onestressed.

I had one weeks ESA on April 15th which was my last payment. No mortgage as I rent from a housing association. However, with HB suspended then they are getting twitchy.

I don't know anything about either crisis loans or budgeting loans. At the moment I'm cut adrift from the benefits system so presumably I'm still eligible for one or the other? What's the best route to go down and how long does the process take? I calculate I'll be in a desperate situation before the end of next week...

Many thanks

Rae

[ErikaPNP]

The maximum total social fund debt for any person is £1500. This applies whether they are single, in a partnership or a family.

 

All Crisis loan giro's for the purposes of living expenses should be uncrossed because they are an ermergency payment for immediate cashing at a post office; if these types of giros are crossed then they have no choice but to replace it immediately, because the purpose of a crisis loan for living expenses is to meet an immediate need.

 

The amount on a giro must be below £449 to be uncrossed. Any payment above this amount would need to be issued in two or more girocheques.

 

Kelcou cannot receive a budgeting loan as she has not been in receipt of an income based benefit for 26 weeks or more.

 

The Social Security Agency in Northern Ireland do things a lot differently to the Department for Work and Pensions in the UK because of the procerdural differences that the departments employ.

[ErikaPNP]

Rae - if you have no funds to meet your immediate needs you can apply for a Crisis Loan in the interim. It is a myth that you cannot get one where you have no current income. You can apply over the telephone. As you are not in receipt of benefit at the moment, you would not qualify for most of the loans/grants the Social Fund offers, because most are reliant on the receipt of an income based benefit (budgeting loans also specify that you must be receiving the income based benefit for more than 26 weeks).

 

Crisis Loans are the only Social fund loan that is completely exempt from the need to be receiving benefit to qualify.

 

Have you re-applied for ESA?

[onestressedwoman]

You have plenty of time ! both issued normally in 5 days

 

BUT ... I was in the same situation applied for benefit in oct no response phoned the they said yeah yeah you'll hear shortly my a*s* then they said they didn't have my paperwork ??

 

In the end wasn't paid till Jan

 

Phone housing benefit office and tell them you are awaiting decision which should have already been dealt with. They'll give you a little breathing space - if not email your mp explain and ask him to support you at the housing benefit office they will allow you more time i had minus balance of £300 on council tax account and they held it for a year till DWP sorted thier lives out.

 

You are or will be entitled to both you just have to decide which one you want - n.b when loan agreed they will send you a letter to accept which you have to sign and send back phone them first get fax no. and contact name and they accept it as confirmation and issue money with out waiting for

MR I DON'T WANT TO DO MY JOB POSTMAN

[ErikaPNP]

A crisis loan, if awarded will be issued on the same day (or the next working day if it is granted in the late afternoon). They don't send an offer letter for immediate living expenses. If they choose to make an award, they tell you over the telephone what the award is and give you an appointment time with your local JCP. You go down to your local Jobcentre with two forms of ID, sign the offer letter there and get handed your girocheque.

 

An offer letter is posted for BL's. Some offices may accept it by fax but they are not supposed to issue a payment with this alone because they need the actual signed piece for it to be valid - similar to any other credit agreement, and because a budgeting loan is not considered a priority, and so may well refuse to accept it. They might get away with accepting it by fax if the jobcentre fax it and forward the original by courier.

[loan_ranger]

Rae, Erika's advice is bang on (if not infallible).

Here's where to find the 0800 number that applies to your region:

Social Fund CL - BDC location and telephone numbers by caller local JCP

The info is up-to-date, I should know because it was my Freedom of Information Request that got the DWP to release this list.

[onestressedwoman]

I have to deal with Belfast as all files have been transferred there ? maybe why they lost my paperwok - My local JCP do not issue giros anymore ? and refuse to fax documents for me? - wonder why that is ? what area's of uk (if you know) is not dealt with in belfast

 

This is interesting I didn't know that they were still dealt with in uk?

[loan_ranger]

Like Erika mentioned earlier, Northern Ireland has its own way of administering the Social Fund, seperate from England, Scotland and Wales.

[RaeUK]

Thankyou onestressed and Erika.

My situation at present is that I have reapplied for ESA as that appears to be the only benefit I can apply for. [Even the JCP were aghast at the thought of me on JSA]. They should have got that form yesterday or today.

On the 9th April, my MP emailed me a copy of a letter he had written to the Chief Exec of JCP. Not heard anything since.

I'm just hopefull the pincer movement of me working up from the bottom and my MP working down from the top will get somewhere...

The council have been kind enough to suspend HB and CTB so that I don't have to reapply for that as well.

I'm hopefull not to need the crisis loan but reassured that it's there as - I have to be honest - I was beginning to get very worried over how I would survive next week.

Thanks again.

Rae

 

[and mention in dispatches to Lucy the OP for bringing this to my attention just when I needed to know!]

 

EDIT: And thanks LR - posts crossed!

[onestressedwoman]

But I'm in England !!

[RaeUK]

You may well be, onestressed, but your files have clearly been banished!

Best wishes

Rae.

[ErikaPNP]

But I'm in England !!

 

The way you were taking about social fund I thought you were in Northern Ireland and when you mentioned Belfast I thought "that explains it", because they are very different to here.

 

I can't think why your claims would be dealt with in Belfast. Is it just for loans and grants (The social fund), or are your main benefits dealt with there too? Seems strange. Each Benefit Delivery Centre for benefits and for Social fund deal with specific areas, loan ranger's link explains it fairly well in regard to which office is assigned to which area. (The link is solely for SF though not benefit claims).

 

for example people living in Greater Manchester Central,Greater Manchester East and West or Cumbria and Lancashire would be dealt with by Chorlton BDC, whilst people living anywhere in the East of England would be dealt with by Norwich BDC.

[loan_ranger]

Rae, one last piece of advice: Call them tomorrow early (open 08:30 - 16:30).

Fridays (and Mondays) can get very busy in the BDCs and you can end up re-dialing (because the phones cut you off after a relatively short while) hundreds of times without ever getting to speak to a DM.

Edited April 21, 2010 by loan_ranger