Published 26 March 2012
Crisis Loans – changes from April 2012
On 23 March 2012 Steve Webb, Minister for Pensions, announced details of two changes that will be introduced to the Crisis Loan scheme from 9 April 2012. These changes are part of a programme of work prior to transfer of elements of Crisis Loans to local welfare provision, to be delivered by local authorities, from April 2013.
From 9 April 2012, changes are being made to:
- The maximum Crisis Loan award in relation to living expenses, reducing it from 60% to 30% of benefit allowance rate for all non-householders. Householders and people without accommodation will continue to receive maximum awards based upon 60% of their benefit personal allowance rate.
- Crisis Loans awarded to alleviate hardship because Child Tax Credits have been awarded but are not yet in payment will be treated as alignment payments. These awards will be exempt from the cap that restricts Crisis Loan living expense awards to 3 in a 12 month rolling period.
Email any queries on these changes to – oed.stakeholderteam@dwp.gsi.gov.uk
