Crisis loans
This content applies to England only.
Housing laws vary between England and Scotland. This page applies to England only. Get advice relating to Scotland
If you need financial help because of an emergency or disaster, you may be able to get a crisis loan. This is an interest-free loan to cover the cost of essential things that you can't afford on your regular income. If you get one, you will have to pay it back.
What are crisis loans for?
You may be able to get a crisis loan if you need money because of an emergency or disaster. You may be able to get one if, 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, or:
- rent in advance if you have to move
- charges for board and lodging or rent in a hostel
- minor repairs and improvements.
Most other housing costs are excluded.
Who can apply?
You have to be at least 16 years old to apply for a crisis loan. You don't have to be claiming any other 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. This would be the case if, 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. If you are leaving an institution or residential care, you do not have to show that your health and safety are at risk.
Your chances of getting a crisis loan and how much you might get will depend on your personal circumstances. If you have more than £500 in savings, or £1,000 if you or your partner is over the age of 60, the amount you get will be reduced. If you have already borrowed from the social fund and haven't paid back what you borrowed last time, it will affect the amount you can get now.
How do I apply?
Loans are given out by the social fund. You can make an application at your local office of the Benefits Agency or Jobcentre Plus. Claim forms are also available online from the A to Z of Welfare Benefits. An application for a crisis loan can now also be made by telephone. However, if sufficient information is not provided by phone, local JobCentre Plus staff can still require you to provide proof of identity in person.
If you apply for a crisis loan just before your money runs out, your claim should be processed the same day.
The Benefits Agency/Jobcentre Plus have to accept an application from you. They can't just tell you you're not eligible and turn you away without giving you an application form and/or interviewing you. If this happens, get advice immediately.
How can I increase my chances of getting a loan?
Get advice if you need a crisis loan. There is a limited amount of money available, so it isn't easy to get a payment. An adviser may be able to:
- help you convince the Benefits Agency or Jobcentre Plus that you should be a priority (the rules about who gets priority are very complicated)
- check whether you can apply for a community care grant instead (if so, you would not have to pay this back)
- explain the forms and help you work out how much you need to ask for
- help you to appeal if the council says it can't help you.
How is the loan paid back?
You will have to be able to pay back the money you borrow within 78 weeks. 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 at all if you will not be able to repay it.
What if my application is refused?
If your application for a crisis loan is refused, you can ask the Benefits Agency/Jobcentre Plus to review its decision. To do this, you must:
- apply in writing
- apply within 28 days of the date the decision was given
- explain clearly the reasons why you think the decision was unfair.
If the Benefits Agency/Jobcentre Plus does not change its mind when it reviews the decision, you can then ask the Social Fund Independent Review Service (IRS) to look at your application again. The IRS can change the decision if it was wrong.
If you are not happy with any decision made on your application and want to ask for a review, get advice immediately. It is often difficult to get decisions about the social fund changed, but the help of an adviser could help you increase your chances of getting a loan.
