Crisis Loans (now known as Budgeting Loans) were originally designed to offer emergency financial assistance to vulnerable people in times of an emergency or disaster. Such loans were usually available through local jobcentres and were distributed as part of the UK’s Social Fund. Despite no longer being able to apply for a ‘Crisis Loan’ under the current benefit system, it is reassuring to know that alternative ‘Budgeting Loans’ typically offer a similar level of support.
Crisis Loans – what happened?
Those previously eligible for a Crisis Loan could expect to receive in the region of £50 with which to bridge any gaps in their short-term financial crisis. Reform of the old Crisis Loan into the Budgeting Loan set up came about in 2013.
A spokesman from the DWP (Department for Work and Pensions) said,
“We’re reforming the social fund because it is complex, over-centralised and poorly targeted, and replacing it with local provision to ensure this money goes to those most in need.”
Further details centred on circumstances surrounding these changes can be found at, http://www.bbc.co.uk/news/uk-21968962.
Crisis Loan to Budgeting Loan – making the move
Claimants previously familiar with the original Crisis Loan system will find that applying for current support is just as straightforward. Likewise if you are making a first-time Budgeting Loan application, we have provided a step-by-step guide.
Please note, if you live in Northern Ireland it is still possible to apply for a Crisis Loan – relevant details can be found at www.nidirect.gov.uk/crisis-loans.
More information can be found by calling the Budgeting Loan number.
How to apply for a Budgeting Loan
Applications for a Budgeting Loan can be made via your local Jobcentre Plus, alternatively you can download an SF500 form www.gov.uk/government/publications/budgeting-loan-claim-form.
You can contact your local Jobcentre Plus between the hours of 8am and 6pm on a Monday to Friday by calling our specific Budgeting Loan number. Having your National Insurance Number ready prior to calling the Jobcentre will significantly speed your enquiry.