Although not strictly a benefit, Crisis Loans formed a vital function in aiding some of the most financially exposed members of society. Available exclusively to those claiming some form of welfare payment, loans were usually given to victims of crime or those that have experiencing some other unforeseen circumstance.
Despite almost every loan being paid in full (normally by deducting the sum from benefit payments made to the loanee) and there being very little public concern about the scheme, Crisis Loans were scrapped as part of the new government’s welfare reforms – with the programme officially coming to an end on the 28th March 2013.
Although the scheme has now come to an end, those who have previously taken out a Crisis Loan and still have a sum outstanding from it will be required to meet their repayment obligations.
Those who would have previously applied for a Crisis Loan still have other options available to them in the form of Budgeting Loans, Hardship Payments (for those who have had their benefits stopped pending appeal), Short-term Benefits Advances (for welfare claimants who face harming their personal health due to literally having no funds available) and Budgeting Advances (for those who require money for big, one-off payments such as rent).