Crisis loans

This content applies to Scotland only.

Housing laws vary between Scotland and England. This page applies to Scotland only. Get advice relating to England

In an emergency, you can apply for an interest-free crisis loan to cover the cost of essential items that you can't afford on your regular income.

What is it?

Crisis loans are awarded by the social fund to help meet expenses after an emergency or disaster (for example, if your house burns down), or in situations in which your health and safety are threatened (for example, if you are homeless). You can apply for a loan of up to £1,500, and you won't need to pay any interest.

A crisis loan could help you pay for essential things that you can't afford, such as:

• food or clothing
• rent in advance if you're moving out of residential or institutional accommodation into private rented accommodation and have been awarded a community care grant
• charges for board and lodging or rent in a hostel
• getting your gas or electricity reconnected
• minor repairs and improvements
• living expenses for a short period of time (for example, while you are waiting for your first benefit payment)
• emergency travel expenses.

Most other housing costs are excluded, for example crisis loans are not awarded to pay deposits or rent on property you already occupy.

Can I apply?

You can apply for a crisis loan if you are 16 or over. You don't have to be receiving income support or jobseeker's allowance to be eligible. However, you'll need to show that you're in a crisis situation, and that you don't have the money to pay for your short term needs.

How do I apply?

You can apply for a crisis loan from your local Jobcentre Plus or Pension Service office and you can also download an application form from the Jobcentre Plus website. If you apply for a crisis loan just before your money runs out, your claim should be processed the same day.

The Jobcentre or Pension Service has to give you an application form - they can't tell you you're not eligible and send you away. If this happens, get advice.

What are my chances of getting a crisis loan?

Your chances of getting a crisis loan and how much you might get will depend on your personal circumstances. The more urgent your situation, the more likely you are to get a loan, so it's important that the social fund understands your full situation when you apply.

Get advice if you need a crisis loan. There is a limited amount of money available, so it isn't easy to get a payment. An adviser may be able to:

• help you convince the social fund that you should be a priority (the rules about who gets priority are very complicated)
• check whether you can apply for a community care grant instead (you would not have to pay this back)
• explain the forms and help you work out how much you need to ask for
• help you to appeal if you claim is refused.

How is the loan paid back?

You will have to be able to pay back the money you borrow within 104 weeks (two years). However, you won't have to pay any interest on the loan. If you are on benefits, a fixed amount will be taken out of your income support or jobseeker's allowance until the loan has been repaid. You won't get a loan at all if you will not be able to repay it.

What if my application is refused?

If your application for a crisis loan is refused, you can ask the social fund to review its decision. To do this, you must:

• apply in writing
• apply within 28 days of the date the decision was given
• explain clearly the reasons why you think the decision was unfair.

If the social fund does not change its mind when it reviews the decision, you can then ask the Independent Review Service (IRS) to look at your application again. The IRS can change the decision if they think it was wrong.

If you are not happy with any decision made on your application and want to ask for a review, get advice immediately. It is often difficult to get decisions about the social fund changed, but the help of an adviser could help you increase your chances of getting a loan.