Crisis loans to stop on the 1st April
Jay Bigz
Posts: 5,338 Forum Member
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So it has been announced that crisis loans will no longer be available after the 1st of April this year...
What are peoples opinion this?
Although it does seem that some have abused the system, and used them for a bit of beer money, others have real emergencies, or situations where they have no food, or nobody to turn to, and I can imagine they've relied on this sort of service to get them through hard times.
It seems a bit drastic really, as surely there are other ways of cutting costs without slaughtering the 'little guys' which seems to be a familiar pattern in this country....
What are peoples opinion this?
Although it does seem that some have abused the system, and used them for a bit of beer money, others have real emergencies, or situations where they have no food, or nobody to turn to, and I can imagine they've relied on this sort of service to get them through hard times.
It seems a bit drastic really, as surely there are other ways of cutting costs without slaughtering the 'little guys' which seems to be a familiar pattern in this country....
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Comments
be in financial crisis and need one of these loans thats tory thinking for you
People need to start managing their money a bit better and go without if they haven't got it.
And if you are genuinely hard up the last thing you want to be doing is taking out one of these loans.
Yes typical of them.
I can see a rise in petty crime once this has taken effect.
Whenever you hear a (usually Tory) politician talk about revising benefits schemes because of "fraud" you know they are lying.
It's a DWP loan and interest free and they aren't dished out willy nilly
'The conditions for a Crisis Loan are strict. By law, an award of a Crisis Loan must be to help meet expenses that have arisen as a consequence of an emergency or a disaster and must also be the only way of preventing serious damage or serious risk to the health or safety of a person or their family'.
Read up on them here:
http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/sb16-a-guide-to-the-social/crisis-loans/
https://www.gov.uk/crisis-loans/what-youll-get
It says they are stopping in this link (10 seconds on google to find that lol)
http://forums.moneysavingexpert.com/showthread.php?t=4470919
http://www.dwp.gov.uk/local-authority-staff/social-fund-reform/
And no - it's not like a payday loan. It's an interest free loan from the DWP, who then take back around £7 per week, until it is paid off, usually from ones benefits.
So people who have just lost their job and have to wait a month or two to receive any kind of financial support don't deserve to eat? A bit harsh?
What about those with no family, or friends, who have to pay out their job seekers on unexpected financial emergencies?
The above are what these emergency, and interest free, loans are for - I think it's a noble service, but people like you obviously don't think that our fellow citizens deserve this kind of support in hard times - fair enough!
Made redundant 2011 around xmas time was a mechanic four years at Ford boom job gone no income to pay monthly out goings which mount to treble what JSA pays. (Monthly)
Had to sign on JSA, since I have been in and out of work with different agencies week here week there two if I am lucky.
Just before Christmas my last job (Agency) came to an end not worked since despite applying for every job available.
Bills mounting my account goes into debt I signed on today my account still remains in a negative balance so this morning I applied for a £40 crisis loan (First time in my life).
Got offered £12.50 :rolleyes: Going to pick it up at four how embarrassing.
I am grateful but it's hardly 'generous' people who fail to see beyond their turned up toffee noses and tar everyone with the same brush really do get on my nerves. :rolleyes:
I do apologise.
I assumed we were talking about these high interest payday loans.
Feel for ya man - people in your situations are what crisis loans should be for, and about a year ago you would have been allowed much more to tide you over than an embarrassingly offensive amount of £12.50. They tightened up the reigns, to stop the pot from being abused (which is fair enough), but in these final days of their service, they're obviously beyond caring now.
It was like talking to a robot when she was doing my application over the phone.:cool: Thankfully I do not have kids to worry about like some of my ex colleagues who really are up the creek.
Exactly, here is the link
http://www.dwp.gov.uk/docs/budgeting-short-term-advances-guidance-las.pdf
They are - completely different service though. A 'short term advance' will allow people an 'advance' on their benefit if there is a delay in payment, or the system fails and they don't get paid properly.
The 'emergency' aspect has been removed, meaning that those in real emergencies, or dire situations, have no option for any quick help.
e.g A fire in your home, accidents, bank charges eating up your money, unexpected bills, and more.
A crisis loan, to those who know nothing about them, provide a financial solution, on the same day, to those in situations like the above -instead of hitting rock bottom, people have been provided with instant help, interest free, with fair repayment options.
The next election can't come quickly enough.
You're right, from the 1st April the responsibility for administering Crisis Loans and Community Care Grants, which are currently part of the Social Fund scheme, passes to upper tier Local Authorities. The DWP will continue to administer other aspects of the Social Fund for the time being such as Budgeting Loans or Funeral Grants.
Each Local Authority has to devise its own scheme and will be given a reduced budget (surprise surpise!) to both administer the scheme and for the fund itself. It's not actually part of Universal Credit but is part and parcel of the government's Welfare Reform agenda.
Each scheme across the country will no doubt be different thus creating a post code lottery and a lot of Authorities will not be offering cash payments; assistance will probably be in the form of food parcels or vouchers to use on specified items.
Just another nail in the coffin of the welfare state imo.:(
It also mentions budgeting advances, for emergencies, which sounds similar to the crisis loan.