Departments Directions Social Fund Guide

Part 3 - Crisis Loans

Direction 21 - Maximum amounts

The Department directs that

The maximum amount which may be awarded in respect of any item or service which is within direction 3 (crisis loans) is the lesser of -

(a)in the case of an existing item, the cost of repair, or

(b)the reasonable costs of replacing an existing item, or purchasing a new item or service (including delivery and installation),

but the amount 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.

Maximum amount - items or services

5000The amount of the loan will be the smallest sum needed for the provision or repair of any item or service which you consider should be met as a crisis loan.

5001The maximum sum will be the lowest of:

the cost of repair to the item if the item can be repaired
the reasonable cost of purchasing the item or service, including delivery and installation where appropriate

5002Consider an award for the minimum deposit and any repayment instalment which has to be paid during the crisis period if the applicant:

is not on IS, income related Employment and Support Allowance(ESA(IR)) income-based JSA(JSA(IB)) or State Pension Credit and
can get the item on hire purchase, credit sale or other commercial repayment terms and
is able to meet the required repayments

5003-5019

Is the amount requested appropriate?

5020You are not expected to check the amounts requested against a price list detailing the amounts to be paid for certain items or in specific circumstances. However, if the amount requested appears to be inappropriate, this should be queried. Exceptionally it may be appropriate to ask the applicant if they have written estimates, see paras 4079 to 4081.

5021-5039