Repaying Budgeting Loan on JSA Sanction

kameil09

Hi all,

wanted to ask if I would need to repay a budgeting loan during a JSA sanction?

My repayment rate is currently £16.75 a week. I qualify for higher hardship payment at 20% reduction as single guardian of my brother. My sanction is for 4 weeks, pending on a 6 month sanction. Will they take £16.75 each week out of the hardship payments?

I have been repaying the loan just fine out of my regular JSA payments but if they take from hardship payments I wouldn't be able to pay the majority of bills for a month. Even if I get a job during this time my bills will still back up.

Is there anything I can do?

Thank you.

allen35

They probably will take the budgeting loan payment, you need to contact them first thing and ask for a lower repayment plan due to severe hardship, you may be asked to put it in writing.

Unfortunately by the time they deal with it your sanction may have finished.

You should be able to apply for a crisis loan if suffering hardship, i think you can have up to 3 or 4.

Did you agree with the sanction, you could appeal or ask the dep't to look again at the circumstances.

Try visiting an advice agency for assistance with letter writing.

Good Luck

missapril75

Repayment rates are set at a % of available income, according to any other debt repayments at the time of the loan.

They should be able to respond to this quite quickly once they know there's a drop in income, because a repayment isn't supposed to exceed that maximum %