Budgeting Loan Help!?

waz1989

i will get right to the point, a close family member of mine applied for a budgeting loan, at the time he was currently claiming JSA, however, around 2-6 days or so, before actually receiving the budgeting loan money in to his bank account, he signed off JSA, as he started an apprenticeship, so I'm deeply confused as 1.is he allowed to keep this money, ? as technically at the time he received it, he was not claiming any benefit. 2.if he is allowed to keep this money, how exactly is he meant to pay the loan back each week? (normally they take it from your benefit) any info on this

Sncjw

Just pay it back if he doesn't need it now

pmlindyloo

waz1989 wrote: »

i will get right to the point, a close family member of mine applied for a budgeting loan, at the time he was currently claiming JSA, however, around 2-6 days or so, before actually receiving the budgeting loan money in to his bank account, he signed off JSA, as he started an apprenticeship, so I'm deeply confused as 1.is he allowed to keep this money, ? as technically at the time he received it, he was not claiming any benefit. 2.if he is allowed to keep this money, how exactly is he meant to pay the loan back each week? (normally they take it from your benefit) any info on this

Since he was on the relevant benefit and met the criteria when the decision was made then the loan should stand.

He now needs to make an arrangement to pay back the loan.

Since he is on an apprenticeship they will probably ask for an income and expenditure form (they may send him one when he telephones). They will then negotiate a repayment plan to be set up by DD or some other means.

https://www.gov.uk/government/publications/the-social-fund-technical-guidance/the-social-fund-technical-guidance

sammyjammy

Can I just add that he should keep the paperwork and all associated correspondence with regard repaying this loan FOREVER.