Department for Work and Pensions

A guide to The Social Fund – SB16 April 2008

 

About this guide

This is one of several technical guides that give detailed information about benefits and entitlements from the Department for Work and Pensions. It is intended for use by professional and voluntary advisers, and members of the public who want to know more about the Social Fund. For further details about the guides.

This guide and the law

The information is only a guide to the Social Fund. It is not a full interpretation of the law relating to the Social Fund as laid down in directions, guidance and regulations.

How to contact us

Contact your Jobcentre Plus office. If you are aged 60 or over you may wish to seek advice from the Pension Service.

You can find the phone number and address for your office on the Jobcentre Plus or Pension Service adverts in the business numbers section of the phone book.

Alternatively, you can get further information from the DWP website: www.dwp.gov.uk or the Pension Service website: www.thepensionservice.gov.uk

To contact us by e-mail go to the Contact Us section on the website.

Introduction

This guide gives information about Community Care Grants, Budgeting Loans, Crisis Loans, Sure Start Maternity Grants, Funeral Payments, Cold Weather and Winter Fuel Payments. The guide applies equally to people of working age and to people over State Pension age

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The Social Fund

A Community Care Grant is a non-repayable payment awarded for the purpose of meeting a need for community care. Grants may be awarded to people who are leaving accommodation in which they received care, to help people to continue to live in the community, or to help people on a resettlement programme to set up home. Grants can also be awarded to help ease exceptional pressures on families, to care for a prisoner or young offender on release on temporary licence, or to help with certain travel costs. They are available to people getting Income Support, income-based Jobseeker’s Allowance, Pension Credit or payment on account of one of them. They are also available to people who are leaving care within 6 weeks and who are likely to get one of those benefits or entitlements on leaving.

A Budgeting Loan is an interest-free loan intended to help spread the cost of certain one-off expenses over a longer period. A Budgeting Loan can help towards the cost of various items for example, things needed for or to improve the home, clothing and footwear, travelling expenses and certain debts.

They are available to people getting Income Support, income-based Jobseeker’s Allowance, Pension Credit, or payment on account of one of them for at least 26 weeks.

Budgeting Loans have to be repaid.

A Crisis Loan may be available to anyone aged 16 or over, whether or not they get any benefit, who needs help to meet expenses in an emergency or because of a disaster. A loan must be the only way of preventing serious damage or risk to the health or safety of the person or to their family.

Crisis loans are interest free but have to be repaid.

Sure Start Maternity Grants are to help pay for things for a new baby. You may be eligible for a Sure Start Maternity Grant if you or your partner are getting Income Support, income-based Jobseeker’s Allowance, Pension Credit, Working Tax Credit where a disability or severe disability element is included in the award or Child Tax Credit at a rate higher than the family element. A Sure Start Maternity Grant is a lump sum payment which does not have to be repaid.

Funeral Payments are to help with the necessary costs of a respectful funeral which you or your partner are responsible for arranging. You may be eligible for a Funeral Payment if you are getting Income Support, income-based Jobseeker’s Allowance, Pension Credit, Working Tax Credit where a disability or severe disability element is included in the award, Child Tax Credit at a rate higher than the family element, Housing Benefit or Council Tax Benefit. The payment covers various aspects of the funeral, but is recoverable from the deceased person’s estate if they have left one.

Cold Weather Payments are made to some people getting Income Support or income-based Jobseeker’s Allowance, and to all people getting Pension Credit to help towards extra heating costs when there is a spell of very cold weather in the area where they live.

Winter Fuel Payments are made to people aged 60 or over to help towards their winter heating costs.

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How decisions are made

Applications for Community Care Grants, Budgeting Loans and Crisis Loans are decided by a decision-maker at Jobcentre Plus. He or she is bound by directions and takes account of guidance from the Secretary of State to help to decide if you are eligible for the assistance you have requested, and how much you should get. For Community Care Grants and Crisis Loan applications the decision-maker looks at all the individual circumstances and merits of a case. For Budgeting Loans, decisions are mainly based on the common treatment of customers' circumstances as directed by the Secretary of State. All grant and loan decisions have to be considered against an annual budget. You have the right to ask for a review if you are unhappy with the decision.

Sure Start Maternity Grants, Funeral Payments, Cold Weather Payments and Winter Fuel Payments are made according to the law as set out in regulations. Decisions on these payments and grants are also made by decision-makers in Jobcentre Plus. If you meet the conditions set out in law, you will receive a payment or grant. If you are not happy with the decision, you, or someone else who has the authority to act on your behalf, can

You can do any of the actions listed above, or you can do all of them.

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The Social Fund Budget

Every year in April Jobcentre Plus offices are given one budget to pay for Budgeting Loans and Crisis Loans, and another budget to pay for Community Care Grants. The money in these budgets has to last all year and we have to consider this when making decisions on these applications.

For Community Care Grants and Crisis Loans, we will aim to meet the highest priority needs first, taking into account the circumstances of each individual application. If there are other cases which have needs of a higher priority than your own, some or all of your needs may not be met. Sometimes, we may have to pay out less money for some things than you asked for.

For Budgeting Loans, all eligible applicants have one of three Budgeting Loan maximum amounts available to them depending on their personal circumstances. Everyone in the same circumstances has the same maximum amount available. How much these Budgeting Loan maximum amounts are depends on the overall state of the loans budget, so sometimes they will change. Any change applies equally to all eligible applicants. You can ask Jobcentre Plus what the Budgeting Loan maximum amounts are at any given time.
Note that the final size of the Budgeting Loan you get may be less than the Budgeting Loan maximum amount, for example, where you already have a Budgeting Loan to repay.

Decisions are made as soon as possible after you make your application. If your application is refused or you are unhappy about the decision, you can ask for a review of the decision.

Sure Start Maternity Grants, Funeral Payments, Cold Weather Payments and Winter Fuel Payments are not limited by Social Fund Budgets in Jobcentre Plus, they are paid if you satisfy the regulations as laid down by law.

Community Care Grants

A Community Care Grant does not have to be paid back. Grants are intended to meet a need for community care.

This means that they can be awarded to:

You must be getting Income Support, income-based Jobseeker’s Allowance, Pension Credit, or payment on account of one of them (or about to get any of them on leaving an institution or residential accommodation in which you have received care) in order to be eligible for a Community Care Grant.

Community Care Grants can cover a wide range of personal circumstances. Some of the wide variety of situations which may prompt an application for a grant are illustrated later in this section.

But, bear in mind that anyone can apply for a grant in any circumstances. Whether a grant can be awarded depends on all of the conditions being met and on your needs being of sufficient priority to warrant a payment from limited funds. Further information on the circumstances for which grants may be given is contained in the guide as follows:

These parts are followed by a section which lists the sort of expenses a Community Care Grant may cover. The last part deals with payment and reviews.

A decision maker will decide if you should get a Community Care Grant and, if so, how much it should be.

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Who can get a Community Care Grant?

If you get Income Support, income-based Jobseeker’s Allowance, Pension Credit or payment on account of one of them, or you are due to leave an institution or care home within 6 weeks, and are likely to get one of those benefits or entitlements on leaving, you may be eligible for a Community Care Grant.

However, if you or your partner are involved in a trade dispute, you will only be eligible for a grant in respect of travelling expenses for visiting persons who are ill or in hospital.

A decision maker at Jobcentre Plus will decide whether you should get a Community Care Grant. We will consider all the circumstances of your application.

We will also have to consider the balance available in the Social Fund budget, to ensure there is enough money to pay for your Community Care Grant. In doing this, we will consider your case compared to other applications. We have a duty not to overspend the annual budget.

We must consider each application on its individual merits.

If you have recently applied for a Community Care Grant or a Crisis Loan

If you have applied for a Community Care Grant or a Crisis Loan for the same items or services within the last 26 weeks, and there has not been a relevant change of circumstances, then you will not get a Community Care Grant.

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Needs which are not covered by a Community Care Grant

You cannot get a Community Care Grant for the following:

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Leaving an establishment in which you received care

You may get a Community Care Grant if you are leaving accomodation in which you received significant and substantial care and supervision.

Examples of such accommodation are:

Not only must you be leaving one of these places, you must be establishing yourself in the community. One of the factors that we will take into account when deciding this is the length of time you were in the accommodation in which you received care. But the most important factor is the level of individual care and supervision you had while you were living there.

If you are providing care for someone who has just left an establishment in which they received care

If you are looking after someone and we agree that help with your expenses will help them to establish themselves in the community then you may also be able to get a Community Care Grant. For example, if you have to move home to look after someone in these circumstances, then you may get help with things like removal expenses, travel costs or connection charges. You would need to be getting Income Support, income-based Jobseeker’s Allowance, Pension Credit or payment on account of one of them, but the person you are caring for does not.

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Help to stay in the community

You may get a Community Care Grant if this will help you to stay in the community rather than enter accomodation to receive care. One of the factors we will consider is how immediate is the likelihood of going into such accommodation, and whether the type of item or service you need would prevent this happening.

Some examples are:

Providing care for someone to help them remain in the community

You may get a Community Care Grant if you are caring for someone and we agree that a payment to you will help them to remain in the community rather than enter accomodation to receive care.

For example, you may need to move to be near, or to live with, the person who requires additional support. You may get removal expenses, travel costs, or connection charges. To get help with a grant, you would have to be getting Income Support, income-based Jobseeker’s Allowance, Pension Credit, or payment on account of one of them, but the person you are caring for does not.

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If you and your family are under exceptional pressure

You may get a Community Care Grant to help with costs to ease exceptional pressures on you and your family.

All families at some time or other suffer from pressure arising from different kinds of problems. This is normal. But if there is exceptional pressure in your family, then you may be able to get a Community Care Grant.

Some examples of situations that may give rise to exceptional pressure are:

The above is not an exhaustive list. What causes exceptional pressure can cover a very wide range of personal circumstances. For example, a chronic illness or disability can give rise to many needs from safety/security items to removal expenses to move to more suitable accommodation.

However, it does not mean that if any of the general situations above apply, it automatically follows that exceptional pressures exist.

We will look at all the factors causing pressures on you and your family and will decide:

and if so:

We may ask you if we can consult a social worker or other agency about your application.

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Caring for a prisoner or young offender on release on temporary licence

If someone on temporary licence from prison or from a youth detention centre is going to be staying with you then you may be able to get a Community Care Grant. These payments normally would be towards their living expenses while they are in your home. You would have to be getting Income Support, income-based Jobseeker’s Allowance, Pension Credit or payment on account of one of them while they are visiting you to be eligible for a Community Care Grant.

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Setting up home as part of a planned resettlement programme

If you are about to move into your own accommodation as part of a resettlement programme, you may be able to get a Community Care Grant.

The grant may be given to you to help you set up home in your own accommodation, if you are on a planned resettlement programme following an unsettled way of life. For example, you may have stayed in a night shelter before you were on a resettlement programme.

You are more likely to get a Community Care Grant if you have had an unsettled way of life for a long time.

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Expenses for certain journeys

A Community Care Grant may be awarded for travelling expenses for any reason within the UK, if the specific conditions above are met. However, travelling expenses and the reasonable cost of overnight accommodation within the UK may be awarded to make a journey to:

Costs

You may be able to get a grant to cover your travel costs of the standard rate public transport, or petrol costs or taxi costs if no public transport is available.

If you are visiting a member of your family in hospital, some of the money you still get for them in the form of benefits or entitlements may be considered to be available to meet the total cost of the journeys.

You may be able to get a grant to cover overnight accommodation if it is not practicable or reasonable to return home the same day.

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What a Community Care Grant covers

You can get a Community Care Grant for many different needs or expenses, so long as these are not excluded in law (see list above). Some examples of expenses, in terms of specific items and services, are:

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Priorities for Community Care Grants

You should note that it does not matter how essential or important an item or service is, an award for it is only appropriate if we decide it will meet a need for community care, as described above.

If we decide that an award will meet a need for community care, we must then decide whether an award has sufficient priority for a payment from the limited budget.

For example, we may decide that a grant for certain clothing items will help someone who has just left a care home to establish in the community.

We may also decide, taking all the facts into account, that the grant for clothing would be of minor importance in helping the applicant to establish themselves in the community. This is called prioritising the application.

Whether an award of a Community Care Grant could be made would depend on the funds available in the grant budget. If there is a very high level of demand on the budget, then in the above example, the grant application is likely to be refused on the grounds of priority. If there are significant funds still left in the budget, a grant might be appropriate.

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How much?

We will decide how much you will be paid.

The minimum amount that can be awarded is £30 although separate arrangements exist for travelling expenses.

For other expenses, including travelling expenses, we will award an amount which we decide is appropriate.

Remember, Community Care Grants do not have to be repaid.

Deciding the amount

We may query the amount you are applying for if, in our opinion, this seems too much.

If you have any savings

The amount of Community Care Grant you get will be reduced, on a pound for pound basis, by any savings you or your partner have over £500 (£1000 if you and/or your partner are aged 60 or over).

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How to apply

You should contact Jobcentre Plus. If you are aged 60 or over you may wish to contact the Pension Service.

For your Jobcentre Plus office or Pension Centre look for the display advert in the business numbers section of the phone book. Alternatively, you can get further information from the DWP website: www.dwp.gov.uk or the Pension Service website: www.thepensionservice.gov.uk

To contact us by e-mail go to the Contact Us section on the website.

Leaving an establishment providing you with care

You can apply for a Community Care Grant if you are still in accommodation providing care, if you expect to get Income Support, income-based Jobseeker’s Allowance, Pension Credit or payment on account of one of these when you leave. You can apply up to 6 weeks before you are discharged, but any grant awarded to help you set up home may not be paid to you until nearer the time you leave care.

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What happens when a decision is made

Once we have decided on your application, which will usually be within 2 weeks, you will be sent a letter letting you know the decision. If you get a grant, the letter will tell you the amount of money you will get.

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How you are paid

Community Care Grants will usually be paid by Direct Payment into a bank, building society or other account provider account which you have nominated.

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Effects on other benefits

There will be no effect on any other benefit from having a CommunityCare Grant.

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If you are dissatisfied with the decision on your application

If you are unhappy with the decision, you may ask for it to be reviewed.

Budgeting Loans

A Budgeting Loan is an interest-free loan for people who have been on Income Support, income-based Jobseeker’s Allowance, Pension Credit or payment on account of one of these benefits, for at least 26 weeks. It is intended to help spread the cost of certain one-off expenses over a longer period. The amount you get is decided by the decision maker at Jobcentre Plus.

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Who can get a Budgeting Loan?

To get a Budgeting Loan:

It is up to the decision maker to decide who should get a Budgeting Loan and how much they should get.

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Needs covered by a Budgeting Loan

You can get a Budgeting Loan if you need help with:

You won’t need to list individual items or services that you need or explain why you need them. But you will need to say how much money you want to borrow.

If you need money for any other reason than the general categories above, we will not be able to pay you a Budgeting Loan.

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How applications for Budgeting Loans are decided

Personal circumstances

We look at exactly the same circumstances for everyone when deciding how much we can pay you. These are:

There is a set maximum amount of Budgeting Loan at any given time for each of these three circumstances. Your award will be based on the maximum Budgeting Loan that fits your particular circumstances of the three.

At the time your application is decided, you will have the same maximum Budgeting Loan amount available to you as everyone else has in your circumstances.

Priorities for Budgeting Loans

Jobcentre Plus has a fixed amount of money in its Social Fund budget to give out as loans. In order to ensure that this budget is not overspent, there are limits on the maximum amounts of Budgeting Loan allowable for the three different personal circumstances. These limits may go up or down depending on how much all Social Fund loan customers are applying for throughout the year.

The limit on the maximum amount of Budgeting Loan is first set for a single person, and then rules laid down by the Secretary of State give the limit for couples without children and one for families (including lone parents) with children. These are:

Because these limits on maximum amounts can be revised at any time, the amount appropriate to your particular circumstances can only be confirmed when your application is processed.

How much you can have

Your circumstances and the current overall state of the loan budget determine the maximum amount of Budgeting Loan you are allowed to have. But the actual amount awarded will also depend on whether you have existing Budgeting Loan debt.

If you have no existing Budgeting Loan debt you may be able to have a Budgeting Loan up to your maximum allowable amount.

However, if you do have existing Budgeting Loan debt, the size of any further Budgeting Loan you can have will depend on what you already owe. We can only consider a new Budgeting Loan for the difference between your maximum allowable amount and the amount you already owe (where this is a lesser amount).

For example:

a further loan of only £200 could be considered. This is because the amount already owed (£500), plus any further loan (£300) cannot be more than the maximum amount of Budgeting Loan allowable (£700). In the same example, if the existing Budgeting Loan debt were £400 or lower, a further £300 loan could be considered.

The figures above are used only to show how awards are calculated.

Further adjustments to the final amount of a Budgeting Loan are made based on;
Any savings you have
Rules about minimum and maximum amounts of loan debt
How much you can afford to repay

If you have any savings

The amount of loan you will get will be reduced, on a pound for pound basis, by any savings you or your partner have over £1,000 (£2,000 if you or your partner are aged 60 or over).

Minimum and maximum amounts

The minimum you can be paid as a Budgeting Loan is £100. Your maximum debt to the Social Fund, including both Budgeting Loan and Crisis Loan debt, cannot be more than £1,500. So, after deciding how much you can have as a new Budgeting Loan using all the preceding tests above, we may restrict this loan in order to keep your total debt within £1,500.

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Repaying the Budgeting Loan

How much you can afford to repay

We will look at your total debt to the Social Fund. When looking at paying back a new loan, total debt means the new loan and any previous Budgeting Loans and Crisis Loans which you still owe.

We will consider:

We will normally take into account all of your Income Support or income-based Jobseeker’s Allowance or Pension Credit except additions for housing costs. We will also take into account any Child Benefit or Child Tax Credit you are getting.

Your total debt to the Social Fund (both Budgeting Loan and Crisis Loan debt) must normally be repaid within 104 weeks (2 years).

How the loan is repaid

Before you get a loan, you will be asked to agree the amount of the weekly repayments. Repayments will be made by deductions from your or your partner’s Income Support, income-based Jobseeker’s Allowance or Pension Credit, as long as you get enough Income Support, income-based Jobseeker’s Allowance or Pension Credit to allow this. If you or your partner stop getting Income Support, income-based Jobseeker’s Allowance or Pension Credit, deductions can then be made from any of the following:

If you stop getting any of these, or if you are not getting enough for deductions to be made, other arrangements will be made with you for repayment. These might be by cash, cheque or postal order, or by direct debit from a bank account you have. You can also pay off all the money you owe in a lump sum, if you become able to do so.

Repayment terms

Repayment terms are made up of the time within which the total debt has to be repaid (repayment period) and the weekly amounts you have to pay back (repayment rates).

Repayment period

The total debt should normally be repaid in 104 weeks (2 years).

Repayment rates

There are three standard repayment rates which apply. These rates depend on your existing financial commitments.

The rates are equivalent to 12 per cent, 10 per cent and 5 per cent of your weekly

excluding any housing costs.

Repayment at 12 per cent rate

If you have no other debts to repay, you will be expected to pay an amount equal to 12 per cent of your weekly

excluding any housing costs.

Repayment at 10 per cent rate

If you have some other payments to make from your benefit, such as rent or fuel arrears, the repayment rate may be lowered to 10 per cent of your weekly

excluding any housing costs.

Repayment at 5 per cent rate

If your commitments are larger (for example, you have higher payments to make from your benefit or are repaying several personal debts) the repayment rate will normally be 5 per cent of your weekly

excluding any housing costs.

If you can repay your total debt within 104 weeks (2 years) at one of the above standard repayment rates, we will make you one offer. If you cannot repay your total debt within 104 weeks, we may give you another choice based on the standard repayment rate. We may offer you a lower amount of new loan which can be repaid at a standard repayment rate in 104 weeks.

Non-standard repayment terms

We may offer you either the full amount of your new loan or a lower amount of new loan at a non standard repayment rate. This rate can be any weekly rate, up to a maximum of 20 per cent of your Income Support, income-based Jobseeker’s Allowance or your Pension Credit (including Child Benefit or Child Tax Credit where appropriate) excluding housing costs. Again we may give you choices, based on recovery of your total debt in 104 weeks (2 years).

You may receive up to three different offer choices, from which you can choose the best one for you.

Budgeting loans

If you are having difficulty making the repayments

If you cannot make the repayments at the rate originally agreed we may be able to help, for example by extending the repayment period to reduce your payments. You should contact your Jobcentre Plus office for advice. If you are aged 60 or over, you may wish to seek advice from the Pension Service.

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How to apply for a Budgeting Loan

You should contact your Jobcentre Plus office. If you are aged 60 or over you may wish to contact the Pension Service.

For your Jobcentre Plus office or Pension Centre look for the display advert in the business numbers section of the phone book.

Alternatively, you can get further information from the DWP website: www.dwp.gov.uk or the Pension Service website: www.thepensionservice.gov.uk

To contact us by e-mail go to the Contact Us section on the website.

What happens when a decision is made

Once we have made a decision about your application, which will usually be within a week, you will be sent a letter telling you the decision. If you are offered a loan, the letter may give you up to three choices of different loan amounts, each with a different rate at which to repay. You will be asked to sign this letter, indicating which one of the offer choices you want to accept and showing that you understand the repayment terms and that you have to repay the loan. When you return the signed letter, you will be paid the loan and deductions will probably start with your next payment of benefit.

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How you are paid your Budgeting Loan

Budgeting Loans will usually be paid in one lump sum into a bank, building society, or other account provider account which you have nominated.

You can have your Budgeting Loan paid into someone else’s account if you wish. For example, you could choose to have it paid to the person who looks after your money.

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If your application for a Budgeting Loan is refused

There are several reasons why your application may be refused. You may not be eligible for a loan because you have not been getting a qualifying benefit for 26 weeks. You may have excess savings, already owe too much in existing social fund loans, or you may not be able to repay a loan.

If you are dissatisfied with the decision

If you are unhappy about the decision, you can ask for a review.

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Effects of Budgeting Loans on other benefits

Normally, you will repay your Budgeting Loan by deductions from your weekly Income Support, income-based Jobseeker’s Allowance or Pension Credit until the loan has been repaid. Other than this, there will be no effect on any other benefit from having a Budgeting Loan. But see ‘Repaying the loan’ if your Income Support, income-based Jobseeker’s Allowance or Pension Credit stops before your repayments have finished.

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Taking on further loans

If you already owe money to the Social Fund from a previous loan, you may get another one but we will consider, as part of your circumstances, the Budgeting Loan debt you already have and if you can afford to repay a further loan.

Crisis Loans

A Crisis Loan is an interest-free loan made from the Social Fund to help you meet an immediate short-term need in an emergency or as a consequence of a disaster. A decision maker will decide if you should get a Crisis Loan. You have to show that a Crisis Loan is the only way that serious damage or risk to health or safety of you or your family can be avoided. You do not have to be getting Income Support, Jobseeker’s Allowance, Pension Credit or any other benefit or entitlement to apply.

In certain circumstances, you may be able to get a Crisis Loan if you need help with paying rent in advance to a landlord (not the local authority). But to qualify for this help you must be moving out of residential or institutional accommodation and have been awarded a Community Care Grant to establish you in the community.

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If you have recently applied for a Crisis Loan or a Community Care Grant

If you have applied for a Crisis Loan or grant from the Social Fund for the same item or service within the previous 26 weeks, and there has not been a relevant change of circumstances, then you will not get a Crisis Loan. But we will consider a Crisis Loan if there has been a relevant change of circumstances or if you did not take up a previous offer of payment.

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Who can apply for a Crisis Loan

You do not have to be getting any kind of benefit or entitlement in order to apply for a Crisis Loan, but you must be aged 16 or over to get one. The conditions for a Crisis Loan are strict. By law, an award of a Crisis Loan must be to help meet expenses in an emergency or because of a disaster. And must be the only way of preventing serious damage or serious risk to the health or safety of a person or their family. For every application, we will look at all the circumstances and decide whether those conditions are met.

The only time we do not apply those conditions is when an applicant gets a community care grant on leaving care and has an immediate need for rent in advance.

Some people in certain circumstances cannot have a Crisis Loan . These are:

There are also limits to the kind of Crisis Loan expenses some people in certain circumstances can get:

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If you have any other means of help

When deciding your application for a Crisis Loan, we will want to know whether you have any other possible sources of help to cover the costs of the crisis. If you do, then the amount of money you get will be affected. You may either get a reduced amount, or you may not get any at all. You will be asked, as part of your application, about such sources of money, for instance:

Housing Benefit, your home and personal possessions will not normally be counted. We may also decide it is reasonable not to count other money or assets in the circumstances of a particular case.

Help from the local council

If your local council is responsible for dealing with disasters in its area, from those which affect only a single house (for example, a gas explosion) to those which could cover a large area (for example, floods or leaks of chemicals in the atmosphere), you are unlikely to get a Crisis Loan if the local council can give immediate help.

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Needs which are not covered by a Crisis Loan

You will not get a Crisis Loan for the following:

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What Crisis Loans cover

Because a Crisis Loan is intended to cover immediate short-term needs arising in an emergency or because of a disaster, an award may be for a specific item or service or meet immediate living expenses for a short period, usually up to 14 days.

The following are examples of what might be considered to be a crisis, and for which a Crisis Loan may be awarded:

Please remember that these are just examples and a Crisis Loan may not necessarily be appropriate. Similarly, if a situation is not mentioned, it does not mean you would not get help. We will look at the individual circumstances of an application. We will consider if a Crisis Loan is the only means by which serious damage or serious risk to you or your family may be prevented in an emergency or because of a disaster.

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Priorities for Crisis Loans

Crisis Loans are paid from the same budget as Budgeting Loans. However, if we decide that you qualify for a Crisis Loan to prevent serious damage or serious risk, your application will always be given a higher priority than all other loan applications which have not been decided using these conditions.

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How much?

We will decide the size of the loan you need.

A Crisis Loan is intended to help you over a period of crisis, it may not necessarily solve the crisis altogether. We will decide how much money you need to get you through the crisis, which may not mean replacing all the losses and repairing all the damage.

There is no minimum amount that you can be paid as a Crisis Loan.

Maximum amount for living expenses

For you and your partner, the maximum amount that you can get as a Crisis Loan for living expenses is an amount equivalent to 75 per cent of the Income Support or income-based Jobseeker’s Allowance personal amount appropriate in your circumstances.

This maximum amount may also be reduced if you have been awarded the hardship rate of Jobseeker’s Allowance. The amount of the reduction will depend on the amount of Jobseeker’s Allowance you would get.

The amount you can get for any child is the same amount as the Income Support allowance payable for children up to the first Monday in September following their 16th birthday.

Maximum amount for services or items

The maximum amount you can get as a Crisis Loan for items or services will be the lower of:

If you are not getting Income Support, income-based Jobseeker’s Allowance or Pension Credit, we may also consider a loan for the minimum amount necessary to obtain the item or service for you on deferred repayment terms (for example, hire purchase).

In any of these cases, the maximum amount you can get depends on what you can afford to repay. There is an overall maximum of £1,500 and we will also take into account any sums you may still owe to the Social Fund. So if, for example, you already owe £400 from a previous loan, the most that you could be paid as a Crisis Loan would be £1,100.

Deciding the amount

We may query the amount of money you are applying for if, in our opinion, it seems too much for your needs.

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Repaying the Crisis Loan

You should not have to start repaying the loan until the crisis is over. You will be expected to repay it over an agreed period of time. Repayments will be made by deductions from your Income Support, income-based Jobseeker’s Allowance or Pension Credit, as long as you get Income Support, income-based Jobseeker’s Allowance or Pension Credit. If you or your partner do not get or stop getting Income Support, income-based Jobseeker’s Allowance or Pension Credit, then deductions can be made from other benefits or entitlements (for a full list of these).

If the benefits or entitlements you get are not enough for deductions to be made to repay the Crisis Loan, or if you are not getting any form of benefit or entitlement, then repayment may be made by cash, cheque or postal order.

Even if you are not getting any form of benefit or entitlement, you will still be expected to pay back the loan at the same rate which you agreed when the loan was taken out. If you become able to pay off all the loan in a lump sum, you can do so.

Repayment rates

We will decide at what rate you should repay the Crisis Loan and how long the repayment will take. There are 3 standard rates of repayment which normally apply. The rate in your case will depend on financial commitments.

The rates are equivalent to 12 per cent, 10 per cent and 5 per cent of your weekly

excluding any housing costs.

Repayment at 12 per cent rate

If you have no other debts to repay, you will be expected to pay an amount equal to 12 per cent of your weekly

excluding any housing costs.

Repayment at 10 per cent rate

If you have some other payments to make from your benefit, such as rent or fuel arrears, the repayment rate may be lowered to 10 per cent of your weekly

excluding any housing costs.

Repayment at 5 per cent rate

If your commitments are larger (for example, you have higher payments to make from your benefit or are repaying several personal debts) the repayment rate will normally be 5 per cent of your weekly

excluding any housing costs.

Repayment periods

The total debt should normally be paid back within 104 weeks (2 years).

If you are having difficulty making the repayments

If you cannot make the repayments at the rate originally agreed we may be able to help, for example by extending the repayment period to reduce your payments. You should contact your Jobcentre Plus office for advice. If you are repaying your Crisis Loan to the Department’s Debt Management organisation, you should contact them.

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How to apply

You should contact your Jobcentre Plus office about making an application.

You may be able to make your application by telephone.

We will deal with your application as soon as possible, and you will be given a letter telling you about the decision. If you are offered a loan, the letter will tell you the amount of money you will get and the rate at which you will repay it. You will be asked to sign this letter, showing that you understand the repayment terms and that you have to repay the loan.

If you are away from home

Normally you should apply to your local Jobcentre Plus office for a Crisis Loan. But if you are stranded away from home and you need a Crisis Loan, you should apply to the nearest Jobcentre Plus office.

For details of the nearest Jobcentre Plus office look for the display advert in the business numbers section of the local phone book

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How you will be paid

Crisis Loans will usually be paid by cheque, made out in your name, which you can cash at a post office or pay into your bank or building society account.

Payment to someone else

If you have applied for a Crisis Loan, but would like this to be paid to someone else, this can be done. The loan can be made out to someone else if there is a good reason to do so – for example, if you need someone to look after your money for you.

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If your application is refused

There are several reasons why your application may be refused. We may decide that there are other ways in which you can meet your need or that the item or service which you want a loan for may not be covered by Crisis Loans.

If you are dissatisfied with the decision

If you are unhappy about a decision, you can ask for a review.

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Further Loans

If you already owe money to the Social Fund from a previous loan, you may get another one if we agree you need one and are satisfied that you can afford the repayments.

Reviews

You have the right to ask for a review if you are unhappy with the decision-maker’s decision on your Community Care Grant, Budgeting Loan or Crisis Loan application. You can ask for a review if you think, for example, that:

To ask for a review, write a letter to your Jobcentre Plus office within 28 days of your decision letter and let us know why you want a review. If you write after 28 days, it will help if you give the reasons why. If some-one writes in for you, add your consent in writing to the letter. But you do not have to do this if that person is your appointee.

If we cannot change the decision to the one you want, a Reviewing Officer in Jobcentre Plus will offer you an interview. The interview is usually by phone but can be face to face in certain circumstances. We will explain the reason for the decision, and you can tell us about anything which you thought was wrong, or which you think we should know. After the interview we will review your case and if we change the decision we will issue a new decision letter. If we cannot change the decision we will write and tell you why.

Further independent review

If you still think the decision is wrong, you can ask for a further review by a Social Fund Inspector. The Inspectors are independent from the Department for Work and Pensions. They can either agree with the Reviewing Officer’s decision, ask us to look at it again, or make their own decision. They will write to you explaining what their decision is, and why they reached it.

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How to apply for a Social Fund Inspector’s review

To apply you can complete the tear-off application in leaflet IRS1 ”How to ask for an Independent Review on Social Fund grants and loans”. A copy of this leaflet should be enclosed with your review decision letter. Or you can write a letter saying why you want an independent review. Send your completed form or letter straight away to the:

Independent Review Service
FREEPOST,
4th Floor, Centre City Podium,
5 Hill Street,
Birmingham
B5 4UB.

If you write after 28 days, it will help if you give the reasons why. If someone writes the form or letter for you, add your consent in writing to the form or letter. But you do not have to do this if that person is your appointee.

For more information about the Independent Review Service go to www.irs-review.org.uk

Sure Start Maternity Grants

A Sure Start Maternity Grant is intended to help you pay for the immediate needs of a new baby if your income is low. It is paid from the Social Fund as a lump sum, and you do not have to pay it back. A Sure Start Maternity Grant is paid when the conditions below are satisfied. It is not limited by a budget and everyone who is entitled will get a payment or grant. [Legislation (1)]

The grant is £500 for each baby.

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Who can get Sure Start Maternity Grants?

You are eligible for a Sure Start Maternity Grant if you or your partner are getting Income Support, income-based Jobseeker’s Allowance, Pension Credit, Working Tax Credit where a disability or severe disability element is included in the award or Child Tax Credit at a rate higher than the family element. [Legislation (2)] and one of the following applies:
You or your partner:

If you have a partner, either of you may apply for the grant. But if your partner applies, the name of the child’s mother should be included.

We use partner to mean:

If you have any savings

Savings do not affect Sure Start Maternity Grants.

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How Sure Start Maternity Grants are paid

Payment will usually be made by Direct Payment into a bank, building society or other account provider account which you have nominated.

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Effect on other benefits

There will be no effect on other benefits from having a Sure Start Maternity Grant.

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How to claim

Contact Jobcentre Plus and ask for claim form SF100 (Sure Start). For details of your Jobcentre Plus office, look for the display advert in the business numbers section of the local phone book.

The claim form can also be accessed at the Jobcentre Plus website.

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When to claim

If you are waiting for a decision on a qualifying benefit or entitlement, you must still claim within the time limits above.

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What information do I need to provide?

You will need to tell us the date your baby is due (sometimes called the expected date of confinement). If the baby has already been born, tell us the date of birth, adoption, residence order or parental order.

For a Sure Start Maternity Grant you will also need to show that you have received advice on the health needs and general welfare of the new baby and, if you claim before the baby is born, on maternal health. There is a certificate on the back of the claim form for this.

The certificate must be signed by a health professional, for example:

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Disputes and appeals

If you want to know more about the decision or you think it is wrong

Please get in touch with Jobcentre Plus within one month of the date of the decision letter. If you contact us later we may not be able to help you.

You, or someone else who has authority to act on your behalf, can

You can do any of the actions listed above, or you can do all of them.

You can find more information about decision making and appeals in leaflet GL24 If you think our decision is wrong - available from any Jobcentre Plus office or the Catalogue of DWP products on the DWP website.

Funeral Payments

A Funeral Payment is intended to help you pay for a funeral if you are on a low income, and you are the person responsible for arranging the funeral. It is recoverable from the deceased person’s estate if they have left one. It is a regulated payment, and as long as you fulfil the conditions you will be paid. [Legislation (3)].

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Who can get a Funeral Payment?

The person who has died must have been ordinarily resident in the UK at the date of death and the funeral must normally take place in the UK. However, in certain circumstances, a Funeral Payment may be made for a funeral which takes place elsewhere in the European Economic Area (EEA) or in Switzerland. Members of the EEA are: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia and the United Kingdom. However, the amount awarded will be restricted to the amount which would have been paid if the funeral had taken place in the area where the deceased had lived in the UK.

You are eligible for a Funeral Payment if it is reasonable for you or your partner to take responsibility for the funeral costs and you are getting any of the following:

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Who should claim?

You should claim if you are the surviving partner of the deceased.

Where the person who died is a child, you should claim if you are the parent of or person responsible for the child. We will not, however, be able to make a payment if there is an absent parent of the child who has not been getting one of the following:

unless they were estranged from the child at the date of death. (By estranged we mean that there was a breakdown in the relationship between the absent parent and child.)

If you are the parent or the partner of a parent of a stillborn child, we do not have to take into consideration whether there is an absent parent.

If there is no surviving partner and the deceased is not a child for whom you were receiving Child Benefit, you should claim if you are a parent, son, daughter, close relative or close friend of the person who has died. We will not be able to make a payment if there is a parent, son or daughter (other than yourself) of the person who has died who has not been awarded one of the qualifying benefits mentioned above. This will not include family members who are: aged under 18, qualifying young persons for the purposes of Child Benefit, full-time students, not ordinarily resident in the UK, members of religious orders, in prison or in hospital (and who had been awarded a qualifying benefit before they entered prison or hospital), asylum seekers being supported by the National Asylum Support Service, or a parent, son or daughter who was estranged from the person who has died.

Where you claim as a parent, son, daughter, close relative or close friend, we also have to decide whether it was reasonable for you to have accepted responsibility for the funeral expenses. We do this by considering the nature and extent of your contact with the person who has died.

Where there are other close relatives of the deceased we consider the nature and extent of the contact each of those relatives had with the person who has died. This will not include close relatives who are: aged under 18, qualifying young persons for the purposes of Child Benefit, full-time students, not ordinarily resident in the UK, members of religious orders, in prison or in hospital (and who had been awarded a qualifying benefit before they entered prison or hospital) or asylum seekers being supported by the National Asylum Support Service. If you had the most contact, then you may be entitled to a payment. If any close relative had closer contact than you, then you will not be entitled to a Funeral Payment. However, if one or more of the deceased’s close relatives had equally close contact as you with the deceased, we will go on to consider the financial circumstances of those people.

If those close relatives are not in receipt of a qualifying benefit, i.e.:

we will not be able to make a payment to you.

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What the Funeral Payment covers

A Funeral Payment can help with the necessary cost of a respectful funeral within the UK (funerals in other EEA states can, in certain circumstances, be considered). This includes:

for burials:

or for cremations:

and in any case:

Payments may be affected by a pre-paid funeral plan.

If you have any savings

Your savings do not affect Funeral Payments.

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How to claim

Complete form SF200 'Funeral Payments from the Social Fund', available from Jobcentre Plus.

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When to claim

You must claim a Funeral Payment from the date of death and up to three months after the date of the funeral.
If you are waiting for a decision on a qualifying benefit or entitlement you must still claim within the time limit above.

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How Funeral Payments are made

If the funeral director’s bill has not already been paid, we will usually pay the Funeral Payment directly into the funeral director’s bank account. Or we may send you a cheque made out to the funeral director for you to give to them. If the funeral director’s bill has been paid we will make the payment to you, normally direct into your bank or building society account.

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Effect on other benefits

There is no effect on other benefits from having a Funeral Payment.

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Repayment of the Funeral Payment

If you get a Funeral Payment, it will have to be paid back from any estate of the person who died. The estate means any money, property and other things that the deceased person owned. A house or personal things that are left to a widow, widower or surviving civil partner will not be counted as part of the estate.

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Disputes and appeals

If you want to know more about the decision or you think it is wrong

Please get in touch with Jobcentre Plus within one month of the date of the decision letter. If you contact us later we may not be able to help you.

You, or someone else who has the authority to act on your behalf, can

You can do any of the actions listed above, or you can do all of them.

You can find more information about decision making and appeals in leaflet GL24 If you think our decision is wrong – available from any Jobcentre Plus office or the Catalogue of DWP products on the DWP website.

Cold Weather Payments

A Cold Weather Payment is intended to help towards extra heating costs during very cold weather. A payment of £8.50 is paid automatically for each week of very cold weather. You do not have to pay it back. It is a regulated payment and not subject to a budget. As long as you fulfil the conditions below, you will be paid. [Legislation (5)].

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Who can get Cold Weather Payments?

You are eligible for a Cold Weather Payment if you are getting Pension Credit, or if you are getting Income Support or income-based Jobseeker’s Allowance which includes either a premium for being 60 or over, or one for being disabled or long-term sick. If you are getting income support or income-based Jobseeker's Allowance you may also qualify if you have a child under 5 or a child who is disabled. (See the leaflet list for more information.)

Do any savings you have affect the payment?

No. Savings do not affect Cold Weather Payments.

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When are Cold Weather Payments made?

Cold Weather Payments are made when the average temperature for your area is recorded as 0° Celsius (freezing point) or below over seven consecutive days. They are also made when the Meteorological Office forecasts such a spell of cold weather.

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How are Cold Weather Payments made?

Payment will be made in the same way as your benefit/entitlement and will be sent out automatically to those who qualify. The amount is a set figure.

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Effect on other benefits

Cold Weather Payments have no effect on other benefits.

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How to claim

You do not need to make a claim. We will automatically send payments to those who qualify.

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Disputes and appeals

If you want to know more about the decision or you think it is wrong

Please get in touch with Jobcentre Plus within one month of the date of the decision letter. If you contact us later we may not be able to help you.

You, or someone else who has the authority to act on your behalf, can

You can do any of the actions listed above, or you can do all of them.

You can find more information about decision making and appeals in leaflet GL24 If you think our decision is wrong – available from any Jobcentre Plus office or the Catalogue of DWP products on the DWP website.

Winter Fuel Payments

A Winter Fuel Payment is an annual tax-free payment made to eligible people aged 60 or over to help towards their winter heating costs. People aged 80 or over are paid an extra amount. It is a lump sum and in most cases is paid automatically, but some people will need to claim. It is a regulated payment and not subject to a budget. As long as you fulfil the conditions below you will be paid.

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Who can get Winter Fuel Payments?

You could qualify if you normally live in Great Britain or Northern Ireland and are aged 60 or over during a specified qualifying week which is the week commencing with the third Monday in September each year. For example, the qualifying week for winter 2008/09 is 15 – 21 September 2008.

You will not be able to get a Winter Fuel Payment if during the qualifying week you:

If you are living with a partner who is getting Pension Credit or income-based Job seeker’s Allowance, any Winter Fuel Payment will be paid to them. This applies to married couples, civil partners and people living together as if they are married or civil partners.

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Do any savings you have affect the payment of Winter Fuel Payments?

No. Savings do not affect Winter Fuel Payments.

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How to claim Winter Fuel Payments

If you got a payment last year or you will be getting a State Pension or other social security benefit (but not Housing Benefit, Council Tax Benefit or Child Benefit) during the qualifying week you will not usually need to claim. Otherwise you will need to make a claim.

All claims must reach the Winter Fuel Payment Centre by the 30th March following the winter being claimed for.

You can get a claim form if you need one, by ringing the Winter Fuel Payment help line on 08459 15 15 15 (08545 601 5613 for text phone users), or you can get a copy from the DWP web site www.dwp.gov.uk. Alternatively, you can get a copy from The Pension Service web site www.thepensionservice.gov.uk/winterfuel.

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When are payments made?

If you got a Winter Fuel Payment last winter, you should automatically get a Winter Fuel Payment for this winter as long as your circumstances have not changed and you satisfy the conditions.

All automatic Winter Fuel Payments should be made by Christmas. If you have not had a Winter Fuel Payment by then, you should call the office that pays your benefit or call the Winter Fuel Payment help line.

If you are making a claim, you should return your claim form as soon as possible. See “How to claim Winter Fuel Payments”. We expect to make payments by Christmas for successful claims that we receive by the Friday of the September qualifying week. We cannot guarantee a payment by Christmas if your claim is received after this.

If you make a successful claim for a Winter Fuel Payment this winter and remain eligible, you should get your payment automatically in the future, as long as you let us know about any changes in your circumstances.

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Disputes and appeals

If you want to know more about the decision or if you think it is wrong

Please get in touch with The Pension Service within one month of the date of the decision letter. If you contact us later we may not be able to help you.

You, or someone else who has the authority to act on your behalf, can

You can do any of the actions listed above, or you can do all of them.

You can find more information about decision making and appeals in leaflet GL24 If you think our decision is wrong - available from The Pension Service or any Jobcentre Plus office or from the DWP website.

Further Information

DWP and other leaflets

Where to get leaflets

All the leaflets mentioned in this guide are free of charge and are available from most Jobcentre Plus offices.

If you are age 60 or over, you may be able to get some of the leaflets from the Pension Service.

For your Jobcentre Plus office or Pension Centre, look for the display advert in the business numbers section of the phone book.

Alternatively, you can get copies of leaflets from here on the DWP website or The Pension Service website.

To contact us by email, go to the Contact Us section of the website.

Community advisers who belong to an organisation that gives benefit information to the public can join the Department for Work and Pensions Publicity Register. The Publicity Register gives advisers access to information about benefits, entitlements and other payments. To join call 0845 602 4444 or fax 0870 241 2634 (9am – 6pm, Monday – Friday).

DWP/Jobcentre Plus leaflets are designed in a number of different styles to make it as easy as possible for you to find the information you want. Some of these leaflets are described below.

Social Fund information

The following are leaflets available for customers which provide information about social fund.

Overview leaflet

This leaflet gives basic information about DWP/Jobcentre Plus and the benefits available:

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General information leaflets

These leaflets give information on the range of benefits that different groups of people can claim.

HHBA5JP Help with getting benefits for people with a disability or illness
CAA5DCS Carer’s Allowance
OW1JP A guide for people who are out of work
VA-Leaflet 1 Notes About War Disablement Pension and War Widow’s / Widower’s Pension
WTC1 Child Tax Credit and Working Tax Credit: An Introduction

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Detailed information

Technical guide leaflets, such as this one, give detailed information on particular benefits or benefit areas. They are intended for professional and voluntary advisers and for members of the public who want to know more about a particular subject.

IS20 A guide to Income Support
WTC2 Child Tax Credit and Working Tax Credit - A guide
RR2 A guide to Housing Benefit and Council Tax Benefit
NP45 A guide to Bereavement Benefits
NI260 A guide to Revision, Supersession and Appeal
IRS1 How to ask for an Independent Review on Social Fund Grants and Loans
NI17A A guide to Maternity Benefits
D49 What to do after a death in England and Wales
D49S What to do after a death in Scotland
HB5 A guide to non-contributory benefits for disabled people and carers
PG1 Pensioners' guide – England and Wales
PG3 Pensioners' guide – Scotland
PC1L Pension Credit
WFPL1 Your guide to Winter Fuel Payments 2007/08
DHC1JP A guide for disabled people, those with health conditions, and carers

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Application and claim forms

Your application for a Social Fund payment can be made on one of the forms listed below. You will be given the correct one for you by the Jobcentre Plus office or Pension Centre.

Form number Use of form Where you get it
SF100 (Sure Start) Sure Start Maternity Grants your Jobcentre Plus office
SF200 Funeral Payments your Jobcentre Plus office, Pension Centre or registrar
SF300 Community Care Grants your Jobcentre Plus office or Pension Centre
SF500 Budgeting Loans your Jobcentre Plus office or Pension Centre

For Crisis Loans contact Jobcentre Plus. You may be able to make a Crisis Loan application by telephone.

Advice or help in filling in forms

If you need further advice or help filling in forms, contact Jobcentre Plus. If you are over 60 you may wish to seek advice from the Pension Service.

For your Jobcentre Plus office or Pension Centre, look for the display advert in the business numbers section of the phone book.

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Other benefits available

If the decision-maker decides you are not eligible for a Social Fund payment, you may still be eligible for other payments which you are not getting at the moment. To find out if you are eligible for any other payments, contact Jobcentre Plus. If you are age 60 or over, you may wish to contact the Pension Service.

For your Jobcentre Plus office or Pension Centre, look for the display advert in the business numbers section of the phone book.

For further information on Child Tax Credit and Working Tax Credit, or to make a claim online, contact HM Revenue & Customs. HM Revenue & Customs Tax Credit Helpline number is 0845 300 3900.

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Other sources of money

There may be other sources of money for which you may be eligible, such as the Family Fund. The Family Fund is a Government fund administered independently by the Joseph Rowntree Trust to help families living in the United Kingdom and caring at home for a severely disabled or seriously ill child, under the age of 16. Ask your Jobcentre Plus office or Pension Centre whether there are any such sources of money for which you may be eligible.

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The Acts, Regulations and The Social Fund Guide

You can buy copies of the following publications through bookshops or direct from the publisher – the Stationery Office. Many libraries will also hold copies for you to consult.

The Social Security Contributions and Benefits Act 1992

The laws that form the basis of the Social Fund scheme are the Social Security Contributions and Benefits Act 1992, the Social Security Administration Act 1992 and the Social Security Act 1998. The Acts lay down the framework of the legislation. The detailed rules of the scheme, including benefit rates and entitlement, are contained in regulations approved by Parliament and directions issued by the Secretary of State.

The Regulations

In the Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment and Winter Fuel Payment sections of this leaflet, you are referred to the Regulations which cover particular rules. The Regulations may be changed or added to from time to time. The main Regulations and Legislation which govern this part of the Social Fund are currently:

The Social Fund Guide

For more detailed information on the Social Fund see 'The Social Fund Guide' - which contains the directions and guidance for making Social Fund payments.