No Crisis Loans?

Hysnbrg

Have I missed something here, called the benefit people today and heard an automated message stating Crisis Loans were no longer available!? I'm not a user of the service as i found it very hostile and use the high street poverty trap pawn shops (least its service with a smile)

But my God this is a new low even for the Torys. Watch the crime rate go through roof. Anyone got more info? I haven't seen anything on the news.

welshbookworm

here
https://www.gov.uk/crisis-loans/overview

Robbie64

Hysnbrg wrote: »

Have I missed something here, called the benefit people today and heard an automated message stating Crisis Loans were no longer available!? I'm not a user of the service as i found it very hostile and use the high street poverty trap pawn shops (least its service with a smile)

But my God this is a new low even for the Torys. Watch the crime rate go through roof. Anyone got more info? I haven't seen anything on the news.

The provisions for Crisis Loans for help in an emergency (loss of money, fire, flood etc), as well as Community Care Grants were switched from the DWP to local councils from 1 April. Each council can set its own qualifying criteria for who will qualify, for what help the council will offer and how any payment will be made.

Crisis Loans which were paid while benefit claims were still being assessed remain with the DWP are still payable but under tighter rules.

missapril75

Hysnbrg wrote: »

Have I missed something here

Yes. It's had one or two mentions.

dealer_wins

Hysnbrg wrote: »

Have I missed something here, called the benefit people today and heard an automated message stating Crisis Loans were no longer available!? I'm not a user of the service as i found it very hostile and use the high street poverty trap pawn shops (least its service with a smile)

But my God this is a new low even for the Torys. Watch the crime rate go through roof. Anyone got more info? I haven't seen anything on the news.

I think there will be a sudden drop in people "losing" their wallets/purses!!

Horseunderwater

I remember trying to get one of those way back in 1997 and having to sit in the Job centre in Cambridge with all the druggies and alchies with a baby daughter in pushchair for 5 hours while they thought about it - Crying my eyes out several times. Eventually managed to get the princely sum of £90 and that was shortly after JSA began, so I cannot even begin to imagine how hard it was or would be now. I would not wish it on anyone.

osdset

Horseunderwater wrote: »

I remember trying to get one of those way back in 1997 and having to sit in the Job centre in Cambridge with all the druggies and alchies with a baby daughter in pushchair for 5 hours while they thought about it - Crying my eyes out several times. Eventually managed to get the princely sum of £90 and that was shortly after JSA began, so I cannot even begin to imagine how hard it was or would be now. I would not wish it on anyone.

Before crisis loans were scrapped, the DWP cut the amount available to a maximum of 40% of weekly benefit so for a single person on basic JSA the most they could get would have been £28.40, the most I managed to get when I was in dire straits was £19.

It's worth bearing in mind that these were loans not grants, the money was in 99% of cases recovered by the DWP as deductions from benefit, I can see the financial logic of cutting out grants, but loans why?

sammyjammy

Horseunderwater wrote: »

I remember trying to get one of those way back in 1997 and having to sit in the Job centre in Cambridge with all the druggies and alchies with a baby daughter in pushchair for 5 hours while they thought about it - Crying my eyes out several times. Eventually managed to get the princely sum of £90 and that was shortly after JSA began, so I cannot even begin to imagine how hard it was or would be now. I would not wish it on anyone.

Well for starters you claim it over the telephone now and the money is paid into your bank account (well up to 1st April it was) so no need to sit around the office unless you've previously had a CL in that financial year in which case you are interviewed.

Jobcentres didn't administer Crisis Loans in 1997, the DSS did.

Horseunderwater

I know that DSS was responsible for the actual loan. The frontline staff back then were in same building and behind glass barriers and there was nowhere else to wait or go back then. During that long wait I had 3 different people come down to see me - it was probably one of the most awful experiences of my life at that time. And all because they did not close the couple claim down as they should have done. Despite letters and forms filled in and phone calls etc. I never wanted to end up going back to one, but alas in late 2004 I lost my job again and we had to start another couple claim. This time OH found a job quickly and they did close it down right, I continued to get the single rate until my new job started.

missapril75

osdset wrote: »

It's worth bearing in mind that these were loans.....I can see the financial logic of cutting out grants, but loans why?

You make the mistake of assuming loans are repaid.

There are thousands of people carrying large debts. Serial applicants would sign off, change from sick to unemployed or vice versa, separate from partners (genuinely of falsely) get back together....all of these things interrupt recovery.

The separations would involve both partners reporting the other has the last benefit payment and both would apply for new crisis loans on that basis.

So then there could be two additional loans to recover and they'd "reconcile" thus interrupting recovery again and then only one loan gets recovered.

And there was this curious anomaly that where people had borrowed so much, so often and repaid so little that their debts meant they could no longer afford to take on another loan. So they'd qualify for a grant. :beer:

People used to apply for loans not based upon need but because they had paid some off and could, therefore, borrow again.

There was tremendous abuse of the system. That's not to justify what they've done, it's a reason to make appropriate changes to prevent the abuse.

But, as usual, government brings in a whole new system when they could keep the good bits and scrap the bad bits instead.

sm1985

I am a support worker for vulnerable young people and the local authority I work in have systems in place for both crisis loans and community care grants (they are calling them non crisis loans). The biggest change with both is that no money is involved, it's all voucher based so the claimant cannot abuse the system.