Crisis Loans from the Social Fund

Applies to: England, Wales, Scotland and Northern Ireland

Who does it help?

A Crisis Loan is to help people on a low income pay for essential items like furniture, household equipment or clothing and in some cases living expenses.

The money comes from the Social Fund. You have to pay the loan back but it is interest-free. They will agree a repayment plan with you that you can afford. If you are getting benefits, the loan is normally repaid weekly out of your benefit payments.

You must be over 16 to apply.

Is it means-tested?

You can only get a crisis loan if you do not have enough money to meet the immediate short-term needs of yourself and your family. You do not have to be getting benefits, but you must not have any money available that you could use instead.

A Crisis Loan does not count as income and will not affect other benefits you are getting.

What help does the benefit provide?

Your need must have come about in an emergency or disaster, such as a fire, flood or other event that means you need something very quickly that you cannot afford, or because you have to pay rent in advance in certain circumstances. The Crisis Loan must be the only way that you can avoid damage or serious risk to the health or safety of you or a member of your family.

Before applying for a Crisis Loan, you should check whether you qualify for a Community Care Grant, a Sure Start Maternity Grant or a Funeral Payment, as these do not have to be paid back.

How much does it pay?

There is no set amount for a Crisis Loan. The amount you may be able to borrow depends on:

your individual circumstances, and
any savings you have, and
whether you have borrowed from the Social Fund before.

The money will be paid into your bank or building society account. In some cases, it can be paid at a post office.

Is it a taxable benefit?

A Crisis Loan is not a taxable benefit.

How to claim

Apply for a Crisis Loan on form SF401, which is available from local benefit offices. In England, Wales and Scotland, you can download this form from the Department for Work and Pensions website (link opens in a new window PDF file size 140kb) from the Department for Work and Pensions website. In Northern Ireland, you can download a form from the Department for Social Development's website (link opens in a new window PDF file size 72kb) or claim by calling 0800 055 6688.

Because crisis loans are discretionary, it is important to include all relevant information on the application form. An interview may also be necessary.

In the past if you made a successful application by phone, you had to go to your benefits office to prove your identity, sign the loan agreement and collect your payment. Now if you have a bank account, you can confirm your identity and acceptance of the terms of the loan over the phone and the money can be paid directly into your bank account.

If you got a crisis loan, or applied for one that was turned down, you have to wait for 28 days before you can apply again for the same items or services – unless your circumstances have changed.

Documents you need

You have to give your national insurance number.

If you make an application over the phone or in person, you will need to provide evidence of your identity and confirm in writing that the details you have given are correct before a payment is made.