Crisis Loan changes

No longer pay Crisis Loans for household items, such as cookers and beds, unless the application comes as a result of a disaster such as flooding. There will be continuing support from the Community Care Grant Scheme for people who meet the qualifying conditions

Reduce the daily rate paid for living expenses from 75 per cent down to 60 per cent of the Income Support personal allowance rate. This will align with Jobseekers’ Allowance cases paid at the hardship rate

Restrict Crisis Loan awards for living expenses in a rolling 12-month period, to a maximum of three. This policy was tested by Jobcentre Plus in 2009/10

Since 2006, the number of Crisis Loan awards has tripled, and continues to grow, largely independent of the recession. These changes to the scheme will manage demand back towards pre-2006 levels as well as ensuring funding for Community Care Grants is protected and DWP is able to pay Budgeting Loans throughout the year.

Without these measures Budgeting Loans would need to be withdrawn before Christmas 2011, leaving significant numbers of people on low incomes with little alternative but to turn to high-cost or illegal lending.

Radian has six Welfare Benefits Advisors. Their job is to ensure that our residents are getting all the benefits they are entitled to. To check yours, please ring 0300 123 1 567.