Repaying back a Social Fund after Bankruptcy?

lee_rougeyyyyy

I became bankrupt Nov 2011 - Year later , DWP have now wrote to me saying I have to repay the remaining balance. Is this right? I believed at the time that the whole amount was cleared.

fermi

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/part6.htm

40.102F Social fund loans

(Amended March 2012)

The Social Fund is a benefit scheme the intention of which is to assist people whose income is insufficient to meet their needs. There are two distinct schemes within the social fund:

• A regulated scheme, which provides entitlement to maternity, funeral, cold weather and winter fuel payments for people who meet the qualifying conditions. These payments are not loans, but benefit entitlements which are not repayable.
• A discretionary scheme under which people may be entitled to claim a community care grant (not repayable), budgeting loan or crisis loan, depending upon their personal circumstances and the urgency of their needs. The official receiver may however, in the course of his duties, deal with claims for outstanding sums due for both budgeting loans and crisis loans.

The repayment terms applicable to social fund loans are notified to and agreed with the beneficiary prior to payment of the award and are therefore repayable with effect from the date they are paid URL="http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch37-48/chapter40/part6/Notes/Notes.htm#18"]Note 18[/URL. Repayments usually start, through deductions from ongoing benefits, within a few weeks of the award being paid, although they may be deferred in cases of hardship.

40.102G Social fund loans - position before 19 March 2012

(Added March 2012)

Following the case of Secretary of State for Work and Pensions v Payne and another [2011] UKSC 60 the recovery of repayments of social fund loans which are provable debts is not allowed following the making of a bankruptcy order against the beneficiary where the petition is presented before 19 March 2012.

40.102H Social Fund loans - position on or after 19 March 2012

(Added March 2012)

Where the bankruptcy petition is presented on or after 19 March 2012 the liability to repay monies owed to DWP regarding a budgeting or crisis loan (granted from the Social Fund) is a non-provable debt.

Note:

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fermi

As you went BR in 2011, the part in RED applies.

The debt is included in your BR. It must be written off, and they are not allowed to recover it from you directly or by deduction from any future benefits.

debt_doctor

I completely agree, and I suggest that you print off Fermi's post and send it to the DWP.

DD

rossireps

dont give up they will frustrate you but in the end they realise.
mine was cleared but 3 times they wrote to say they were collecting it. everytime i rang and got onto them. eventually they listened

bornjoyful

I am adding to this thread. I also had this issue and had it sorted twice (in 2011 and 2014) including sending them the relevant piece of legislation and my bankruptcy petition and discharge from 2007!
it is now 2020 and i just had my universal credit docked £30 a week for this social fund loan from 2006.
I am pretty sure I wrote about in 2015 on this site but cannot find it

karabash

A there any limitations to this?  I was made bankrupt in 2013 and just this last 2 years DWP are claiming I owe them for a social fund loan from 2000.  I have NO recollection, they won't offer me any evidence and have now embarrassingly gone to my employer for a deduction of earnings!  I am going round and round.  DWP say they have no paperwork it is with the Debt Centre and the Debt Centre say it is with DWP.

sourcrates

karabash said:

A there any limitations to this?  I was made bankrupt in 2013 and just this last 2 years DWP are claiming I owe them for a social fund loan from 2000.  I have NO recollection, they won't offer me any evidence and have now embarrassingly gone to my employer for a deduction of earnings!  I am going round and round.  DWP say they have no paperwork it is with the Debt Centre and the Debt Centre say it is with DWP.

Information available here, along with contact information, and complaints resolution help -

DWP Debt Management customer service standards - GOV.UK (www.gov.uk)