Departments Directions Social Fund Guide

Part 3 - Crisis Loans

Direction 18- Amount to be awarded

The Department directs that

(1)The maximum amount that may be awarded as a crisis loan in respect of living expenses for applicants, other than people whose income-based jobseeker's allowance is reduced by virtue of regulation 145 of the Jobseeker's Allowance Regulations (Northern Ireland) 1996 (hardship cases)and subject to Direction 18(A), is the aggregate of:

(a)an amount equal to 60% of the appropriate income support personal allowance, for the applicant and any partner, and

(b)for each child, an amount equal to the personal allowance applicable to dependent children, in respect of Income Support;
but must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and his partner and £1500.

(2)The maximum amount that may be awarded by way of a crisis loan in respect of living expenses to an applicant whose partner would, if he or she applied for a crisis loan, have had the expenses in respect of which a crisis loan may be awarded, restricted by direction 17(b) to (e), is the aggregate of -

(a)an amount equal to 60% of the appropriate income support personal allowance, for the applicant only, and

(b)for each child, an amount equal to the personal allowance applicable to dependent children,in respect of Income Support; but must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and his partner and £1500.

(3)Where any step in the calculation under paragraph (1) or (2) results in a fraction of a penny, that fraction may be rounded up or down to the nearest penny.

General

4850If you consider that a crisis loan is appropriate, determine the amount to be awarded. This will vary from case to case depending on the individual circumstances.

4851A crisis loan will not necessarily compensate for the full consequences of the emergency, e.g. lost money will not necessarily be replaced in full. The amount of the crisis loan will be the smallest sum needed to tide the applicant over the period of need or to remove the crisis.

4852Crisis loans are likely to fall into two broad categories:

immediate needs for living expenses
immediate needs for other items or services

4853-4879

Minimum amount

4880There is no Department direction on the minimum amount of a crisis loan. If the amount being considered is small be certain that:

the absence of this small amount would cause serious damage or risk to the health and safety of the applicant or a member of the family
there is no other means available to the applicant to lessen the risk

4881-4899

Amount to be awarded

4900The maximum rate of crisis loan for immediate living expenses except for those lone parents defined in Direction 18A(1), for any period is:

60% of the appropriate income Support(IS) personal allowance income -related Employment Support Allowance(ESA(IR))or income-based JSA personal allowance for the applicant and partner plus
for each child the IS,ESA(IR) or JSA(IB) personal allowance applicable to dependent children

4901Consider if a smaller payment than the maximum set out in Directions 18 to 20 is appropriate.

4902You may round maximum amounts down to the nearest multiple of £0.50, if the rounded amount is sufficient to tide the applicant over the period of need or remove the crisis. If the amount is rounded down, give an explanation on the decision form.

4903A crisis loan for immediate living expenses calculated as in para 4900 may not be increased because IS,ESA(IR) or JSA(IB) premiums are or would be payable.

4904Special rules apply for:

those receiving income-based JSA at hardship rate, see Direction 20
those whose partners are disallowed/sanctioned jobseekers, see para 4470
those whose partners have not taken part in a Work-focused interview, see para 4470

4905-4919

Maximum amount - Board and lodgings and hostel charges including meals and services

4920The maximum rate of a CL for immediate living expenses is:

60% of the appropriate IS personal allowance for the applicant and partner plus
for each child, the IS personal allowance applicable to dependent children.

4921Consider if the accommodation charge requested is reasonable, and remember that the CL should be the smallest sum needed to remove the crisis during a period of need. As the NIHE is legally bound to make an interim payment of housing benefit within 14 days of receipt of a claim, long term payments for housing costs should not be necessary. The chargesfor board and lodging accommodation and resedential charges for hostels can be paid in addition to the 60% maximum amount, see Direction 18(4).

4922-4949