Crisis Loan (Form SF401)

Crisis Loan (Form SF401)

A Crisis Loan is there to help you in an emergency or as a consequence of a disaster. It is interest-free and you don't need to be in receipt of benefits to qualify. The Government state that the amount you can apply for isn't set, but the maximum amount is believed to be £1500, the amount is dependant on what you can afford to pay back from your benefits. The amount is interest free and deducted from you benefits at an amount agreed before the loan is given. I am unable to advise how it is deducted if you are not in receipt of benefits.

A crisis loan can be applied for the following:

• unable to pay for basic living costs and this will be a serious risk to the health and safety of you or your family, or unable to pay for something else and this will be a serious risk to the health and safety of you or your family, or need help to pay rent in advance to a non-local authority landlord because you are moving out of institutional or residential accommodation and a Community Care Grant is being paid to establish you in the community.

You can download the form at http://www.direct.gov.uk/en/index.htm or collect it from your local job centre. There is also a telephone number which your local job centre will give you, but don't be surprised if its constantly engaged.

Most people only apply for a crisis loan when there benefit payments have been messed up. Its is important to note a crisis loan is available if you are unable to meet basic living costs and this will be a serious health and safety risk to your family. For example, you might need to replace an important item of furniture and household equipment urgently. Or, you might need money for living expenses urgently because you have lost your money or it has been stolen or because you have spent all your money.

These are examples of things you cant get a crisis loan for:

medical items, spectacles or dental treatment;
most housing costs, like deposits to secure accommodation, mortgage payments or big repairs to your home (but you can get a payment for rent in advance if the landlord is not a local authority, to pay for board and lodgings, to meet intermittent costs like emptying septic tanks, or for minor repairs to your home);
buying or installing a telephone, or pay call charges;
running costs for a motor vehicle (such as repairs).