Crisis Loans

A Crisis Loan is a one-off payment that will help you to pay unexpected and sudden expenses, perhaps following a natural disaster or a family emergency, which you are unable to cover out of your current income. The Crisis Loan is, as the name suggests, intended to help people on a low income when they have no alternative source of financial assistance and they or their family would be at risk without this loan. The Crisis Loan is a government loan which you will be required to repay on a weekly basis. It is intended to help people who have a lower income cover unusual costs without getting into excessive debt, and for this reason it is an interest-free loan also free from income tax. You can apply for a Crisis Loan if you are over sixteen and need help paying for:

• Accommodation if your home has been damaged or destroyed following a natural disaster
• Extensive repairs to your home, perhaps as a result of fire or flood damages
• A deposit for new rented accommodation if you are leaving a care institution and have been given a Community Care Grant

The exact amount you will receive as a Crisis Loan depends on your personal situation, how much money you have in savings and how much money you currently owe the government as a result of other loans of this nature, such as Budgeting Loans. Most importantly, your immediate needs will be taken into account.

If you wish to apply for a Crisis Loan you should contact your local Jobcentre Plus for assistance and an application form. You can contact the Jobcentre Plus information line on 0800 055 6688 if you need telephone assistance. If you are given a Crisis Loan you be required to agree to the terms and conditions of repayment. You will need to make weekly repayments, but the repayment period can be negotiated. Your repayments may be automatically deducted from any state benefits to which you are currently entitled.

If your application is successful and you accept the terms of the loan then the Crisis Loan will usually be paid to you in the form of a personal cheque, which you can pay into your bank account or cash at a Post Office®. You should receive the cheque in person at your local Jobcentre Plus, when you have signed a repayment agreement. Should you encounter any problems with making your repayments, it is important that you contact the Jobcentre Plus office which processed your claim as soon as possible. You can also contact your local Jobcentre Plus if you feel that your application was unfairly refused.