What are crisis loans for?

richard9991

absent_dad wrote: »

Crisis loans are as they say for people in a crisis, now this is subjective in that what you deem to be a crisis, I or they may not. For example not having a fridge is not necessary unless you need a fridge to keep your medication cold (made up situation there). Now to some people in the benefits deparment having a bed is not necessary, you can sleep on the floor or on the sofa...But to you it can be life threatening so it could be considered a crisis.

If you can show this, ie a doctor to confirm this, show the bed that you need and how much it costs, they will consider it.

A crisis loan is not the only loan the social fund do, budgeting loan is the best one to aim for, this broadly speaking is for the larger things you have to buy like beds, fridges etc that are not a crisis but things you would like to make your life easier. It is an interest free loan which is deducted at source, ie taken directly out of your benefit.

Ask for the forms from the jobcentre and if you are having trouble filling them in, pop down the CAB who will be more than happy to help and advise more.

Hope this helps

A crisis loan could be considered for a fridge for medical reason ie a diebetic needs to keep insulin at a certain temprature

dreamylittledream

tinktinktinkerbell wrote: »

we got told our electric would be paid if we were going to be cut off

No electric company will cut you off if you enter into negociations with them to pay a bill you can't afford.

If a payment plan can not be agreed they usually install key card meters with a 'debt' on them where you gradually pay back what you owe along with ongoing consumption (at a vastly inflated price of course). Sometimes they will take deduction fron your benefit at source (councils will do this for rent arrears and old council tax bills too, as will the courts).

Crisis loans are only paid if they are the only means to prevent a serious risk to health or safety. If you have been getting red letters from the electric company and have ignored them and are being threatened with disconnection you have not exhausted all other means so you ahve no eligibility for a crisis loan.

If you have a key meter and have run out of credit and emergency and have no money to pay for credit then they will pay for this as there is no other way to prevent the electric from going off.

Who told you that by the way?

dreamylittledream

richard9991 wrote: »

A crisis loan could be considered for a fridge for medical reason ie a diebetic needs to keep insulin at a certain temprature

Thats pretty much what the previous poster said (insulin being medication).

That said most insulin doesn't need to be refridgerated - just kept at a constant temperature. Room temperature is fine for most forms of insulin so no need for a fridge.

Its a tough criteria to be awarded a crisis loan but that's the point - social fund is the last safety net of the welfare state.

concerned43

You would be better applying for a Community Grant - that way you do not have to pay it back! Crisis loans can be expensive as they take a lot of money of your benefits each week.

concerned43

Are you in receipt of DLA?

tinktinktinkerbell

dreamylittledream wrote: »

No electric company will cut you off if you enter into negociations with them to pay a bill you can't afford.

If a payment plan can not be agreed they usually install key card meters with a 'debt' on them where you gradually pay back what you owe along with ongoing consumption (at a vastly inflated price of course). Sometimes they will take deduction fron your benefit at source (councils will do this for rent arrears and old council tax bills too, as will the courts).

Crisis loans are only paid if they are the only means to prevent a serious risk to health or safety. If you have been getting red letters from the electric company and have ignored them and are being threatened with disconnection you have not exhausted all other means so you ahve no eligibility for a crisis loan.

If you have a key meter and have run out of credit and emergency and have no money to pay for credit then they will pay for this as there is no other way to prevent the electric from going off.

Who told you that by the way?

when i rang up for a crisis loan i was told this, luckily ours wasnt anywhere close to being cut off but if it was we would have gotten money to pay for it as we can not have a key meter where we live

dreamylittledream

tinktinktinkerbell wrote: »

when i rang up for a crisis loan i was told this, luckily ours wasnt anywhere close to being cut off but if it was we would have gotten money to pay for it as we can not have a key meter where we live

For the third time of saying - no you wouldn't. You got given some duff information, paying a crisis loan for an electric bill would be breaching the law as there are other means available. Any decision maker who paid such an award would fail a quality check.

Electric companies are not legally allowed to disconnect if a customer has been making efforts to make payments - this is how you end up with direct deductions from benefits.

And if you just ignore them then you make your own bed and lie in it - its not an emergency if you have just willfully ignored a problem now is it?

dreamylittledream

concerned43 wrote: »

You would be better applying for a Community Grant - that way you do not have to pay it back! Crisis loans can be expensive as they take a lot of money of your benefits each week.

There are some very specific criteria for community care grants. The OP would have to fall into one of these to be eligible.

For reference most people are not - its not just as simple as being on benefits.

As a side note to the OP - how long (if at all) have you been on an income based benefit. If its been more than 26 weeks you would probably be eligible for a budgeting loan - currently up to £348 for a single person - and this can be used for anything you please pretty much.

tinktinktinkerbell

dreamylittledream wrote: »

For the third time of saying - no you wouldn't. You got given some duff information, paying a crisis loan for an electric bill would be breaching the law as there are other means available. Any decision maker who paid such an award would fail a quality check.

Electric companies are not legally allowed to disconnect if a customer has been making efforts to make payments - this is how you end up with direct deductions from benefits.

And if you just ignore them then you make your own bed and lie in it - its not an emergency if you have just willfully ignored a problem now is it?

how would we have been able to pay it when we were getting no benefit (it wasnt sorted at the time) we couldnt have a key meter and we had no money?

munchings-n-crunchings

There are many organisations that can help with things like beds.
Try googling 'furniture project' and your local town.
Often these can be church based, or recycling projects.

Otherwise you could place a wanted request on Freecycle.
Google Freecycle and your local town.
There are frequently people offering beds on my local group, and they always seem to be in demand.
The point of freecycle, is that the items are given, and cost you nothing, so you have the advantage of not paying a loan back.

Regards
Munchie