crisis loans from dss

[hotfemail]

[hotfemail]

oops - sorry
What percentage of your income can they take each week to pay one back - what is the least amount they can leave someone with ?

[hotfemail]

I realise this is in the wrong section - but i didnt mean to post it - sorry

[hotfemail]

thanks eddie
I know someone who is on ESA only due to health - they are stopping £39 a fortnight, which seems a lot out of a health benefit ?

[smart1]

I have recently had crisis loans - I was told they would take £7-72 pw from my benefit. - that is over 10% of weekly benefit - annoys me that it was DWP's fault in first place that forced me to have to apply for one.

[TCL-MUMPING]

There are three repayment rates, 12%, 10% and 5% of weekly benefit (less housing costs) There are various criteria but the more existing personal debts you have, the longer you are given to repay the crisis loan.

[northernmonkey]

The amount deducted from your benefits is - £6.12 per week.

£12.24 out of every payment.

You should of been told this when you applied for crisis loan over the phone....unless you've had more than 2 in the past 12 months therefore you have to ring up crisis loan number and an appointment is made for a face - face interview at local job centre and usual questions are asked, then sent to local delivery centre where a descion maker looks at the application and sends a yes or no answer within about 45 minutes and if a crisis loan is awarded a payment is made at the next counter payout.

Also when you picked up the giro, you should of signed 3 letter's, and also with the giro recieved 2 letters. The letter which your handed with your giro basically says

"On the date you applied for a loan from the social fund. You asked for £the amount. We have decided we can award you £ amount.

This is from date - date (length of 2 weeks)

The law usually says we cannot award you more than 2 crisis loans within this period of time.

£6.12 will be taken from your (JSA/INCOME SUPPORT) each week.

Depending on time time between getting the crisis loan and the next time you get your benefits it may be that if there is only a couple of days until the next time you are paid then it will not be until 2 weeks later that the crisis loan repayments are deducted. However if there is say for example a week or more until your next payment, then it is likley that the 1st repayment is taken out then.

Hope this gives you a detailed answer.

Has it helped?????

[TCL-MUMPING]

This is from Independent Review Service for the Social Fund

"What about repaying the loan?
You will have to repay the crisis loan, and will be asked to agree to repayment terms before the payment is made. The repayment rate is usually set at 5%, 10% or 12% of your income, depending on what other commitments you may have. Your total Social Fund debt normally has to be repaid within 104 weeks."

[northernmonkey]

I can 100% confirm the amount is £6.12. The reason as to why I am so sure is I myself am currently paying off crisis loans, and I have been since I started to claim JSA. That is the reason I am/was able to give such a detailed answer. However, another thing is if you apply for a budgeting loan, if it's awarded (not always the amount which you asked for, 9 times out of 10 the amount is reduced) about a week after getting the giro you recieve a letter from the DWP giving you a start date which they will begin to take £6.12 from your benefits and a date on which you will of finished repaying the loan back. During this time, all crisis loan repayments are NOT taken from your benefits due to this loan being repayed.

[TCL-MUMPING]

northernmonkey the rate YOU pay is the rate applicable to YOU. You are not correct in the assertion that the figure will be the same as yours. If it were a set figure, why is it that a percentage is quoted and not only that, THREE different percentages are quoted?

The current basic rate of Jobseeker's Allowance (JSA) is £64.30 so 12% of that figure is £7.72 and smart1 wrote "I have recently had crisis loans - I was told they would take £7-72 pw from my benefit"

It may well be that there are many other paying the same rate as you but you can not say that it will be so in all cases.

[hotfemail]

thank you all VERY much !