DRAFT DIRECTIONS Annex C

Direction 14C - Crisis Loan eligibility - 3 or more living expense awards in the specified period

14C.(1) This direction applies to applications for a social fund payment under direction 3 made on or after 4th April 2011.

(2) Unless paragraph (3) applies or (subject to paragraph (7)), the current application is for an alignment award, an applicant is not eligible for a social fund payment under direction 3 for expenses referred to in direction 3(4)(a), (d) or (e) if he has had three relevant awards (see paragraphs (6) to (8)) in the twelve months ending on the date on which the current application is made.

(3) An award may be made where, by virtue of paragraph (2), the applicant would not be eligible for a social fund payment under direction 3 for expenses referred to in direction 3(4)(a), (d) or (e), but the decision maker is satisfied that the latest application is made–

(a) as a consequence of a disaster; or

(b) in an emergency which–

(i) is not a consequence of an act or omission for which the applicant or his partner is responsible, and

(ii) the applicant or his partner could not have taken reasonable steps to avoid.

(4) For the purposes of paragraph (2), two relevant awards are to be treated as a single award where the following conditions are satisfied–

(a) an application is determined in an emergency and a payment is awarded by a decision maker in the Out of Hours Service of the Department for Work and Pensions (DWP) to cover only the period until a DWP office at which an application may be made is next open (Award A);

(b) the decision maker advises the applicant to apply again on the day the appropriate DWP office is next open;

(c) the applicant applies on that day in accordance with the Social Fund (Applications and Miscellaneous Provisions) Regulations 2008; and

(d) a relevant award (Award B) is made in respect of a period immediately following the period covered by Award A.

Interpretation of this direction

(5) For the purposes of this direction “relevant award” is to be interpreted in accordance with paragraphs (6) to (8).

(6) A relevant award is an award made on or after 4th April 2011 under direction 3 for assistance with -

(a) living expenses referred to in direction 3(4)(a) (but not an alignment award);

(b) travel expenses referred to in direction 3(4)(d); or

(7) An award is a relevant award insofar as it relates to any expenses referred to in paragraph (6)(b) or (c) even if it is combined with an alignment award.

For the avoidance of doubt, an award which includes payment for more than one category of the expenses referred to in paragraph (6) is a single award for the purposes of paragraph (2).

(8) An award made by virtue of paragraph (3) is a relevant award.

(9) An alignment award is an award made where-

(a) an income-replacement benefit has been claimed but either a decision has not been made or an award has been made but full benefit entitlement is not in payment under that award;

(b) in respect of an application made on or after 9th April 2012, Child Tax Credit has been claimed but either a decision has not been made or an award has been made but Tax Credit is not in payment under that award; or

(c) employment has begun but first payment of earnings as an employee after being on an income-replacement benefit has not yet been received,

and as a consequence, the applicant needs help with living expenses until such time as full benefit entitlement, payment of tax credits or remuneration is received.

(10) On referral by bodies such as the police and social services the Out of Hours Service of the DWP mentioned in paragraph (4) may provide help in emergency situations when DWP offices are closed.

Direction 18 – Crisis Loans, amount to be awarded

18.(1) This direction applies to an application for a crisis loan in respect of living expenses made on or after 9th April 2012.

(2) Except where direction 20 applies, the maximum amount that may be awarded under direction 3(4)(a) as a crisis loan in respect of living expenses is the aggregate of the sums referred to in paragraphs (3) and (4) but must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and the applicant’s partner and £1500.

(3) The first sum is

(a) where paragraph (6) applies, an amount equal to 60%; or

(b) where paragraph (7) applies, an amount equal to 30%,

of the appropriate income support personal allowance, for the applicant and subject to paragraph (5), the applicant’s partner.

(4) The second sum is, for each child, an amount equal to 100% of the personal allowance applicable to dependent children in respect of income support.

(5) Where, if the applicant’s partner were to apply for a crisis loan, the expenses in respect of which a crisis loan could be awarded would be restricted by direction 17(1) because one or more of the circumstances in direction 17(2)(b) to (d) applies, the first sum is to be arrived at under paragraph (3) by applying the relevant percentage to the single personal allowance rate applicable to the applicant.

(6) This paragraph applies where –

(a) in respect of the dwelling normally occupied by the applicant at the date on which the determination is made, the applicant or the applicant’s partner –

(i) has an award of housing benefit or council tax benefit,

(ii) is liable, solely or with someone else, for:

rent,
charges for accommodation in a hostel or board and lodging, or
Council Tax (or would be liable for Council Tax if the dwelling were not exempt),

and has applied for and has not been refused housing benefit or council tax benefit in respect of such payments on any ground other than exceeding income or capital limits, or

(iii) is liable, solely or with someone else, for mortgage payments or, in relation to Scotland, payments under heritable securities; or

(b) the applicant is a person without accommodation.

(7) This paragraph applies where it appears to the Decision Maker that the applicant and the applicant’s partner normally reside in the home of a relative, friend or other person and neither the applicant nor the applicant’s partner falls within paragraph (6)(a) of this direction

(8) Where any step in the calculation under paragraph (3) or (4) results in a fraction of a penny, that fraction may be rounded up or down to the nearest penny.

(9) An award for expenses referred to in direction 3(4)(b) to (e) is not limited under paragraph (2) but the total sum awarded under direction 3(4) 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.

Direction 20 – Crisis Loans, calculations of amounts for living expenses Jobseeker’s Allowance hardship cases

20. (1) This direction applies to an application for a crisis loan in respect of living expenses made on or after 9th April 2012.

(2) Subject to paragraph (6), where an applicant’s income-based jobseeker's allowance is reduced by virtue of regulation 145 (applicable amount in hardship cases) or regulation 146G (applicable amount in hardship cases for joint-claim couples) of the Jobseeker's Allowance Regulations 1996, the maximum amount that may be awarded under direction 3(4)(a) as a crisis loan in respect of living expenses is the amount determined under paragraph (3) or (4) but must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and the applicant’s partner and £1500.

(3) Where direction 18(6) applies, the maximum amount is the lower of (a) or (b), that is –

(a) the aggregate of -

(i) an amount equal to 60% of the appropriate income-based jobseeker's allowance personal allowance for the applicant and the applicant’s partner, and

(ii) for each child, an amount equal to 100% of the income-based jobseeker's allowance personal allowance rate applicable to dependent children; or

(b) the income-based jobseeker's allowance applicable amount payable in the circumstances referred to in paragraph (2).

(4) Where direction 18(7) applies, the maximum amount is to be determined in accordance with paragraph (3) except that 30% is to be substituted for 60% in paragraph (3)(a)(i).

(5) Where any step in the calculation under paragraph (3) or (4) results in a fraction of a penny, that fraction may be rounded up or down to the nearest penny.

(6) An award for expenses referred to in direction 3(4)(b) to (e) is not limited under paragraph (2) but the total sum awarded under direction 3(4) must not in any case exceed the difference between any sum already repayable to the social fund by the applicant and the applicant’s partner and £1500.